Quick answer

Repayment periods for restaurant finance depend on the loan type and the funding purpose. As a quick guide:

• Short-term loans / bridging: typically 6–24 months (some as short as 3 months).
• Merchant cash advances / revenue-based finance: often 3–18 months, repaid via a share of takings.
• Standard business term loans: commonly 12–60 months.
• Equipment / asset finance (kitchen kit, chillers): typically 12–84 months.
• Commercial mortgages / property finance: usually 5–25 years.

These are illustrative ranges only. Exact terms and repayment schedules depend on lender assessment, loan size and security. If you want tailored options, request a Free Eligibility Check: Get Quote Now.

What “repayment period” means for restaurants

The repayment period (sometimes called the loan term) is the length of time you have to pay back the borrowing. It directly affects how much you pay each month: shorter terms = higher monthly payments; longer terms = lower monthly payments but more interest over the life of the loan.

Key things repayment period affects:

• Monthly cashflow pressure
• Total finance cost (interest & fees)
• Eligibility for certain lenders (some only offer longer or shorter terms)

Common components that determine monthly cost: interest rate, any arrangement or broker fees, the loan length and whether the loan is secured.

Typical loan types for restaurants & usual repayment ranges

Short-term business loans / bridging

Typical term: 3–24 months. Common loan sizes: £10,000–£150,000+.

Best for: urgent cashflow, emergency repair, seasonal stock, short refurbishments. Pros: fast decisions and quick access to funds. Cons: usually higher cost per month than longer-term alternatives.

Merchant Cash Advances / Revenue-based finance

Typical term: effectively 3–18 months, repaid as a percentage of daily/weekly card takings.

Best for: hospitality businesses with strong card sales that need speed and flexibility. Be aware: effective cost can be high and repayments vary with takings.

Business term loans (unsecured or secured)

Typical term: 12–60 months. Common loan sizes: £10,000 upwards.

Best for: general working capital, expansion, marketing, staff costs. Secured loans may offer longer terms and lower monthly costs.

Equipment / asset finance (leasing, hire purchase)

Typical term: 12–84 months (often matched to expected asset life). Common loan sizes: from £10k to £200k+ depending on kit.

Best for: kitchen fit-out, ovens, refrigeration, POS systems. The term is usually aligned to the expected useful life of the equipment.

Commercial mortgages / property finance

Typical term: 5–25 years (sometimes longer for developer finance). Loan sizes: higher value (often £100k+).

Best for: purchasing premises, refinancing freehold or long leases. These carry different underwriting and typically require longer-term affordability assessments.

Invoice finance / overdrafts / revolving facilities

These are revolving or ongoing facilities rather than fixed-term loans. Repayment structure differs: fees and interest apply as you draw and repay.

Want to compare terms from lenders who know hospitality? Free Eligibility Check — Get Quote Now.

Factors that decide the loan term you’ll be offered

Lenders look at many inputs when setting term length. Key ones include:

• Purpose of funds: equipment typically gets longer terms; short-term cashflow gets shorter terms.
• Business age & trading history: established chains usually qualify for longer, cheaper terms than very new outlets.
• Turnover & profitability: higher and more consistent turnover supports longer terms and larger amounts.
• Loan size and security: secured loans (against property or assets) can offer longer terms at better rates.
• Credit profile: strong credit profiles increase lender confidence and may extend available term options.
• Seasonality: seasonal restaurants may be offered tailored or seasonal repayment profiles.
• Director guarantees or personal security: presence of PGs can influence term decisions.

Each lender’s policy differs—specialist hospitality lenders will consider trading patterns, footfall, and seasonality more closely.

Illustrative examples & scenarios

Scenario A — New deli opening (fit‑out finance)

Need: £40,000 for kitchen fit-out and furniture. Likely term: 36–60 months to keep monthly payments manageable while the business ramps up. This term balances affordability with total interest cost.

Scenario B — Established restaurant replacing kitchen equipment

Need: £25,000 for ovens and refrigeration. Likely term: 36–60 months, or up to 84 months if the equipment has a long expected life and lender offers hire‑purchase or leasing.

Scenario C — City restaurant with temporary cashflow shortfall

Need: £20,000 to cover a slow season. Likely options: short-term bridging 6–12 months or a merchant cash advance with repayments tied to takings. These provide rapid access but cost more.

Illustrative only. Actual offers, terms and repayments depend on lender assessment and specific business circumstances.

Choosing the right repayment period: cashflow-first checklist

Before you accept an offer, run this quick checklist:

• Forecast weekly/monthly cashflow over the loan term (include VAT, wages, rent).
• Identify your slow months and ensure you have a buffer for them.
• Decide whether you prefer a lower monthly payment (longer term) or lower total interest (shorter term).
• Check for early repayment charges — do you want the option to refinance or repay early?
• Confirm whether the lender allows seasonal or interest‑only periods if needed.

Need help matching term to cashflow? Our partners specialise in hospitality: Start Your Free Eligibility Check.

Repayment flexibility and special features to look for

When comparing offers, ask about:

• Interest‑only periods (short term) to ease initial months
• Seasonal repayment schedules (lower payments in off-peak months)
• Balloon payments (smaller monthly payments with a larger final payment)
• Payment holidays (short deferrals for agreed periods)
• Early repayment charges (ERCs) and how ERCs are calculated

Always ask for a full illustration showing monthly payments, total charges and whether any fees are capitalised.

How UK Business Loans helps restaurants

We do not lend. Instead we make a fast, no‑obligation introduction to lenders and brokers who specialise in hospitality finance. Our simple process:

1. Complete a short enquiry (takes a few minutes).
2. We match your request to lenders/brokers on our panel.
3. Matched partners contact you with tailored quotes and terms.

Our service is free to use. Typical response times are within hours during business days. Ready to compare offers? Get Quote Now.

Note: enquiries are information-only and not a formal application—lenders may request documents and carry out credit checks later.

What happens after you submit an enquiry

After you submit the enquiry form we typically:

• Match your business profile to suitable lenders/brokers.
• A partner will call or email to discuss options and request documents (accounts, bank statements, ID).
• If you agree to proceed, lenders may perform affordability checks and credit searches.

Submitting an enquiry does not itself affect a credit score. Formal applications may include credit checks—your matched partner will confirm this.

FAQs

What repayment periods are most common for restaurant loans?

Most commonly: 12–60 months for standard business loans, 12–84 months for equipment finance, 3–18 months for merchant cash advances or short-term products, and 5–25 years for property finance.

Can I get a 6‑month loan for my restaurant?

Yes—short-term loans and merchant advances are available with 3–6 month terms. These are typically more expensive per month and best for urgent, short-lived needs.

Do lenders offer seasonal repayment schedules?

Some lenders and specialist hospitality brokers can structure seasonal or flexible repayment plans—tell us about your trading profile so we can match you to lenders who consider seasonality.

Will applying through UK Business Loans affect my business credit score?

Submitting an enquiry does not affect your credit score. Lenders may run credit checks during formal applications or later in the process.

Are all lenders and brokers FCA‑regulated?

UK Business Loans introduces businesses to a range of lenders and brokers. Regulation status varies—your matched partner will confirm any regulation and disclosure requirements.

How quickly will I get quotes?

Often within hours during business days. Complex requests can take longer—most matches contact you quickly to request documents for a formal quote.

Get a free, no‑obligation quote for restaurant finance

If you’re running a restaurant and need finance of £10,000 or more—for fit-outs, equipment or working capital—complete our short enquiry and we’ll match you to lenders and brokers who know hospitality: Free Eligibility Check — Get Quote Now.

For more on financing tailored to restaurants see our industry page on restaurants business loans.

Reminder: UK Business Loans is not a lender or financial adviser. We introduce businesses to lenders and brokers. Offers will be based on a lender’s assessment and will include terms, fees and any credit checks.