Pub Business Loans UK — Typical Interest Rates & Fees

Summary (quick answer): Typical rates for pub business loans vary widely by product and borrower. Indicative ranges are: secured term loans 6%–12% p.a.; unsecured loans 8%–20%+ p.a.; asset/equipment finance 5%–12% p.a.; bridging 0.5%–1.5% monthly (≈6%–18% p.a.). Arrangement fees commonly 1%–4% of the facility plus valuation, legal and broker fees. UK Business Loans is an introducer — we don’t lend or give regulated advice; we match you with lenders and brokers. Rates below are indicative only and subject to status. Ready for a tailored quote? Start a Free Eligibility Check now: Get Quote Now.

At-a-glance snapshot (indicative ranges)

• Secured term loans: typically 6%–12% p.a. (lower for strong security/freehold).
• Unsecured or higher-risk loans: typically 8%–20%+ p.a.
• Asset & equipment finance: typically 5%–12% p.a. (hire purchase, lease).
• Bridging / short-term loans: typically 0.5%–1.5% per month (≈6%–18% p.a.) + arrangement fees.
• Arrangement fees: commonly 1%–4% of the loan; valuation, legal and broker fees also apply.

These are indicative ranges only — lenders quote on a case-by-case basis. For a quick personalised view, try our Free Eligibility Check: Get Started Free Eligibility Check.

How UK Business Loans helps pub owners

UK Business Loans connects pub owners with lenders and specialist brokers to find suitable funding quickly. We don’t provide loans or regulated financial advice — we introduce you to providers who can. Our short enquiry form (under 2 minutes) helps us match your business to the best panel members who will contact you with quotes. We commonly handle enquiries for facilities from £10,000 and upwards.

Looking for tailored options for pubs? Explore our sector page on pubs business loans for more context, then start a Free Eligibility Check: Get Quote Now.

What determines the interest rate and fees for pub loans?

Rates and fees reflect lender risk and the structure of the deal. Key factors include:

• Security / collateral: freehold property or strong business & property security usually reduces rates; leasehold or unsecured facilities cost more.
• Loan amount & LTV (loan-to-value): lower LTV typically attracts better pricing.
• Term & repayment profile: longer terms can lower monthly payments but may slightly raise total interest cost; interest-only or bullet repayments affect pricing.
• Business performance: turnover, gross margins, cashflow and historic trading matter.
• Credit history & director guarantees: weaker credit increases rates and may require guarantees.
• Purpose: refurbishment, buyout, stock finance or working capital each has different risk profiles.
• Type of lender: high-street banks often price more competitively for prime, well-documented cases; specialist and alternative lenders price higher for speed and flexibility.
• Sector-specific risks: location, local competition, wet/dry split, gaming income and seasonal trading patterns are all considered.

Example: a well-performing freehold pub seeking £150,000 for refurbishment on a 5‑year secured term will usually pay a noticeably lower rate than a short bridging loan for an auction purchase on a leasehold premises.

Typical rates & fees by loan type

Secured term business loans (for pubs)

Indicative interest: 6%–12% p.a. — prime borrowers with property security may secure lower rates. Typical term 1–10 years. Fees commonly include an arrangement/facility fee (0.5%–3% of the loan), valuation and legal fees, and costs to register security.

Unsecured business loans / working capital

Indicative interest: 8%–20%+ p.a. depending on credit profile and lender. Arrangement/origination fees often higher (1%–5%). Suitable for smaller sums where security isn’t available, but expect higher ongoing costs.

Asset & equipment finance

Indicative rates: 5%–12% p.a. Structures include hire purchase and leasing. Typical fees: deposit 0–20% depending on the asset and lender, plus admin fees. Useful for kitchen equipment, cellar lines, fixtures and fleet vehicles.

Invoice finance & merchant cash advances (MCAs)

Invoice finance: charges typically 0.5%–3% of invoice value per month or blended rates equivalent to ≈6%–24% p.a., depending on advance rates and terms. MCAs: quoted as factor rates (e.g., 1.15–1.5) or as a daily/weekly percentage of takings — effectively high-cost, short-term finance. Always ask for a full cost illustration and APR equivalent where possible.

Bridging & short-term loans

Indicative charges: 0.5%–1.5% per month (≈6%–18% p.a.) plus arrangement and exit fees (often 1%–3%). Designed for quick purchases, auction buys or short-term cashflow gaps. Expect higher costs and clear exit plans.

Refinance & consolidation

Rates depend on the replacement facility. If refinancing with a secured term loan using property, expect rates closer to secured loan ranges. Be mindful of early repayment charges from existing lenders.

Get a Free Eligibility Check to see which product and pricing are likely for your pub.

Typical one-time and ongoing fees to expect

• Arrangement / facility fee: 1%–4% of the loan (paid upfront or added to the facility).
• Broker fee: some brokers charge fees; many work on lender commission — always confirm before proceeding.
• Valuation & survey fees: typically a few hundred to £1,000+ depending on property and survey depth.
• Legal fees: usually £500–£2,000+ for security documentation and lender work.
• Exit / redemption fees: can apply on bridging or specialist facilities.
• Early repayment charges: structured into many fixed-rate or term deals.
• Monitoring / admin fees: sometimes payable monthly for invoice finance or structured facilities.

Worked example: a £200,000 loan with a 2% arrangement fee = £4,000 upfront (or capitalised into the loan if allowed).

Simple worked examples

Example 1 — Freehold pub refurbishment

Situation: Freehold pub wants £150,000 for a 5‑year secured refurbishment loan.

• Indicative rate: 7.5% p.a.
• Arrangement fee: 2% = £3,000 upfront.
• Approx annual interest: £11,250 (7.5% of £150,000).
• Monthly repayment estimate (capital & interest): roughly £3,000–£3,200 depending on amortisation.

Example 2 — Leasehold village pub equipment & working capital

Situation: Leasehold pub needs £40,000 for equipment and stock.

• Product: unsecured or asset-backed small business loan.
• Indicative rate: 14% p.a.; arrangement fee 3% = £1,200.
• Annual interest: £5,600; monthly cost approx. £467 (excluding fees capitalised).

Example 3 — Fast purchase / auction purchase (bridging)

Situation: Buy pub premises at auction, need £300,000 for 6 months.

• Indicative monthly interest: 1% (total 6% over 6 months) = £3,000 per month.
• Arrangement fee: 1.5% = £4,500.
• Exit: refinance to a term loan or sell — bridging is short-term and must have a clear exit strategy.

These illustrations are for guidance only. Lenders will price based on full facts and documentation.

How to get the best rates for your pub

• Prepare clean management accounts, cashflow forecasts and VAT returns.
• Have lease documentation, licences and landlord consents ready.
• Be clear on the purpose and realistic about repayment capacity.
• Offer appropriate security if available (freehold/property/equipment) to improve pricing.
• Compare multiple lenders and brokers — use our quick enquiry to receive tailored matches fast.

Start now with a Free Eligibility Check — it only takes a few minutes and does not affect your credit rating: Free Eligibility Check.

Transparency & important notes

All figures on this page are indicative only and subject to status. UK Business Loans acts as an introducer and does not lend money or provide regulated financial advice. Always request a full cost breakdown and written terms from any broker or lender before proceeding. Completing our enquiry form does not affect your credit score; lenders may carry out credit checks later if you choose to progress.

Frequently asked questions

What are the usual interest rates and fees for pub business loans in the UK?

Indicative ranges: secured term loans 6%–12% p.a.; unsecured 8%–20%+ p.a.; asset finance 5%–12%; bridging 0.5%–1.5% per month. Arrangement fees commonly 1%–4% plus valuation/legal fees. Exact pricing depends on the factors described above.

How do I find the best lender for my pub?

Prepare basic documents and complete a short enquiry. We match your brief to lenders and brokers with relevant experience so you can compare offers quickly. To begin, complete our short form: Get Quote Now.

Will submitting an enquiry affect my credit score?

No — submitting our enquiry form does not impact your credit file. If you progress with an application, lenders or brokers may carry out checks that can affect credit records.

Can I get funding if trading has been difficult recently?

Yes — some specialist lenders consider imperfect trading histories, but expect a pricing premium or additional security. Be honest about past trading when enquiring so you are matched appropriately.

How quickly will lenders contact me?

Often within hours during business days for straightforward enquiries; complex deals can take longer. Once you submit a form, relevant partners will contact you to discuss next steps.

Final summary & next steps

Pub loan pricing varies by product, security and business risk. Secured borrowing is usually the most cost‑effective route; short-term, unsecured and merchant cash advances are more expensive. For an accurate, no‑obligation view based on your circumstances, complete our quick enquiry and receive tailored quotes: Start Your Free Eligibility Check. Our service is free to use and confidential — we introduce you to lenders and brokers who can provide formal quotes and next steps.

Need a fast, tailored quote for your pub? Complete our short form and we’ll match you with the best lenders and brokers for your needs: Get Quote Now.

1. What interest rates can I expect for pub business loans in the UK?
Indicative rates vary by product and credit profile — secured term loans typically 6%–12% p.a., unsecured 8%–20%+ p.a., asset/equipment finance 5%–12% p.a., and bridging 0.5%–1.5% per month (≈6%–18% p.a.), all subject to status.

2. What fees should I budget for when taking out a pub loan?
Common fees include arrangement/facility fees of around 1%–4% of the loan plus valuation, legal and broker fees, and possible exit or monitoring charges.

3. What’s the difference between secured and unsecured pub business loans?
Secured loans use property or assets as collateral and generally offer lower rates and larger amounts, while unsecured loans cost more and are suited to smaller sums where security isn’t available.

4. Will submitting an enquiry for a pub loan affect my credit score?
No — completing UK Business Loans’ enquiry form does not affect your credit score, though lenders may carry out credit checks later if you progress an application.

5. How quickly will lenders or brokers contact me after I submit an enquiry?
For straightforward enquiries, relevant lenders or brokers often respond within hours on business days, while complex cases may take longer.

6. What documents do I need to apply for pub finance?
Typical documentation includes management accounts, cashflow forecasts, VAT returns, lease or freehold papers, licences, landlord consents and ID for directors/owners.

7. Can I get pub funding if my business has had recent trading difficulties or poor credit?
Yes — some specialist lenders consider imperfect trading histories or adverse credit, but expect higher rates, more security or stricter terms.

8. What types of finance are suitable for pubs?
Pubs commonly use secured term loans, asset/equipment finance (hire purchase/lease), invoice finance, merchant cash advances, bridging loans and refinance/consolidation facilities depending on the need.

9. How can I get the best rates on a pub business loan?
Prepare clean financials and forecasts, provide suitable security where possible, be clear on purpose and repayment, and compare multiple lenders via a Free Eligibility Check to secure competitive pricing.

10. Is UK Business Loans a lender and does submitting an enquiry commit me to anything?
No — UK Business Loans is an introducer (not a lender or regulated adviser), its service is free and confidential, and the short enquiry is only used to match you with suitable lenders or brokers (not a formal application).