Quick answer (TL;DR)

Yes — in many cases restaurants can use refinancing or debt consolidation to reduce monthly costs. Whether you’ll save depends on the types of debt, current interest rates, repayment terms and any fees or charges. UK Business Loans does not lend; we quickly match restaurants to specialist brokers and lenders who can assess your position and supply free eligibility checks and quotes. To see if refinancing can lower your monthly payments, Get Quote Now — Free Eligibility Check.

How refinancing & consolidation work for restaurants

Refinancing means replacing an existing loan with a new loan (often with a different rate or term). Consolidation means combining two or more debts into one single facility — commonly to simplify payments and potentially reduce the monthly outlay.

Restaurants refinance or consolidate for several reasons:

• Lower monthly repayments to ease cashflow during quieter months
• Switch from variable to fixed rates for more predictability
• Extend loan terms to reduce monthly pressure
• Move or repackage secured/unsecured debts (e.g., equipment finance rolled into a property mortgage)
• Free up working capital for stock, staffing or remodelling

Simple before & after illustration (example only):

Note: reducing monthly costs can sometimes increase the total interest paid over the life of the loan — weigh short-term cashflow relief against long-term cost.

Types of restaurant finance you can refinance

Restaurants use several finance products that may be possible to refinance or consolidate:

• Term loans (business loans) — typically straightforward to refinance
• Overdrafts — often replaced by a term loan or revolving facility
• Merchant cash advances (MCAs) — more complex and costly to refinance, but specialist brokers can help
• Asset & equipment finance — can be refinanced or restructured into new asset finance
• Commercial mortgages / leasehold mortgages — possible but usually requires longer underwriting
• Invoice finance / factoring — can be switched between providers but not always consolidated into a term loan

Some debts are easier to move (unsecured loans, newer term loans). Secured loans — especially property mortgages — take longer and may need valuations or solicitors. Specialist hospitality lenders and brokers understand seasonal trading patterns and can present a stronger case than a standard high-street application.

Find tailored options for restaurants on our industry page for restaurants business loans.

Will refinancing reduce your monthly costs?

Refinancing or consolidating can reduce monthly costs, but it’s not guaranteed. Key factors that drive monthly savings include:

• Lower interest rate on the new facility
• Longer repayment term (reduces monthly instalments)
• Replacing daily/weekly percentage repayments (like some MCAs) with fixed monthly payments
• Combining multiple facilities into a single, cheaper loan

Caveats and cost drivers to check:

• Arrangement fees, exit or early repayment charges on current loans
• Setup fees or broker fees on the new facility
• Longer loan terms may increase total interest paid
• New security or personal guarantees may be required

Always request a clear breakdown from any lender showing upfront costs, monthly payments and total cost over the term so you can compare “apples to apples”. If your priority is monthly cashflow, a longer term with slightly higher total interest may be appropriate — but get the numbers first.

What lenders and brokers look for (eligibility)

Hospitality is a specialist sector. Lenders and brokers will typically assess:

• Time in business and trading history (track record helps)
• Turnover and cashflow — evidence you can meet repayments, including seasonal dips
• Profitability and management accounts
• Credit history (company and key directors)
• Existing security (assets or property) and lease length on premises
• Type and mix of existing finance (MCAs, credit cards, mortgages)

Common documents requested:

• Last 12–24 months’ business accounts
• Recent bank statements (typically 3–6 months)
• VAT returns and management accounts
• Details of existing debts and repayment schedules
• Lease agreement or property paperwork if applicable

If you have imperfect credit, specialist lenders and broker-led solutions may still be available — they often charge higher rates but can be a route to consolidation. Our matching service will try to connect you with lenders who understand hospitality risk.

Step-by-step: How UK Business Loans helps restaurants refinance

1. Quick enquiry (under 2 minutes) — basic business details, current loan payments and turnover range.
2. We match you — we connect your enquiry to lenders and brokers who specialise in hospitality and commercial refinance.
3. Rapid response — expect contact within hours to 48 hours from matched partners with next steps or indicative quotes.
4. Compare offers — lenders/brokers will provide terms. You choose which application to proceed with — only then do lenders conduct formal checks.
5. Formal application & funding — the lender/broker handles underwriting, offers and completion.

Get Started — Free Eligibility Check

What happens next: we share your enquiry details securely with selected lenders/brokers; they will contact you to discuss options. Submitting an enquiry does not affect your credit score. If you decide to proceed, the lender will perform checks which may include a credit search.

Pros, cons and risks to consider

Pros

• Lower monthly repayments and simplified single payment
• Improved short-term cashflow for wages, stock and operations
• Potentially lower interest rates or more predictable fixed repayments
• Ability to refinance expensive short-term facilities (like MCAs)

Cons & risks

• Longer term may mean more interest over the loan life
• Early repayment charges on existing loans may offset savings
• New security or personal guarantees may be required
• Some specialist options are more expensive — comparison is essential

Please note: UK Business Loans is an introducer and does not provide regulated financial advice. Consider speaking with a broker, accountant or solicitor on material decisions.

Alternatives to refinancing or consolidation

If refinancing or consolidation isn’t suitable, consider alternatives:

• Invoice finance — release cash from unpaid invoices to improve short-term liquidity
• Short-term bridging or merchant cash advances for urgent needs (more expensive)
• Asset or equipment refinancing — refinance only the equipment to spread cost
• Operational changes — menu engineering, renegotiate supplier terms, staffing rotas or opening hours to cut costs

Our matched brokers can advise which solution may best match your goals and trading profile.

Frequently asked questions

Will applying through UK Business Loans affect my credit score?

No. Submitting an enquiry through our site does not affect your credit score. Lenders may perform credit checks only if you progress to a formal application.

Can single-site restaurants or recently expanded businesses apply?

Yes. Eligibility varies by lender; some specialise in single-site hospitality businesses and can consider recent expansions if you supply forward trading forecasts and management accounts.

How long does refinancing take?

Timescales vary: simple consolidations can take days to a few weeks; secured or mortgage-style refinances typically take longer (several weeks to months). Specialist fast-track options exist for urgent needs.

Are there any costs to use UK Business Loans?

Our service is free for business owners. Lenders and brokers may charge arrangement fees or commissions; these will be disclosed by them before you commit.

Can I consolidate multiple debts into one loan?

Often yes. Consolidation depends on the types of debts and the lender’s criteria — high-cost short-term products like MCAs can sometimes be rolled into a term loan but may require specialist underwriting.

What if my credit record isn’t perfect?

Specialist lenders and broker-led solutions exist for businesses with adverse credit, but rates and terms may be less favourable. We’ll try to match you with partners experienced in handling imperfect credit.

Get Quote Now — Free Eligibility Check

Start your free enquiry — get matched to specialist restaurant lenders in hours

If your goal is to reduce monthly repayments, simplify payments or restructure costly short-term finance, start with a free eligibility check. We’ll match your restaurant with lenders and brokers experienced in hospitality. It takes under 2 minutes to submit basic details and get matched.

Get Quote Now — Free Eligibility Check

Important disclosure: UK Business Loans is an introducer and not a lender. We do not provide regulated financial advice. We match business owners with approved lenders and brokers. Submitting an enquiry does not affect your credit score. By submitting your details you agree to our Privacy Policy and Terms & Conditions.

What happens next: you submit a short enquiry → we match you with relevant partners → lenders/brokers contact you to discuss terms → you compare and choose whether to proceed.