Hospitality Finance

Hospitality Finance for UK Businesses

Hospitality finance from BTG can be accessed by a wide variety of businesses. Finance is available for hotels, restaurants, pubs, bars, cafes, and other businesses operating in the hospitality sector.

Whether you need to refurbish your premises, purchase new equipment, manage cash flow through a quiet season, or fund an expansion, hospitality finance can provide the capital you need.

What is hospitality finance?

Hospitality finance is a form of business finance designed specifically for businesses operating in the hospitality sector, including hotels, restaurants, pubs, bars, cafes, takeaways, and leisure venues.

Rather than applying the same criteria as a standard business loan, hospitality finance takes into account the realities of running a hospitality business, including seasonal revenue fluctuations, high upfront equipment costs, and the ongoing capital requirements of maintaining and upgrading premises.

Hospitality finance covers several different products, which can be used individually or in combination depending on what your business needs. These include:

• Unsecured business loans for working capital or short-term funding requirements
• Secured business loans for larger amounts, using commercial property or assets as collateral
• Asset finance for commercial kitchen equipment, furniture, refrigeration, and EPOS systems
• Commercial mortgages for purchasing or refinancing hotel or restaurant premises
• Invoice finance for businesses with outstanding trade receivables

What are the benefits of hospitality finance?  

• Flexible finance options to suit a wide range of hospitality businesses
• Access to both secured and unsecured lending products
• Repayment terms tailored to suit your cash flow
• Seasonal or deferred repayment schedules available through certain lenders
• No early repayment penalties on unsecured products
• Access to funds can be quick
• Wide panel of funders
• No collateral required for unsecured lending options

How we helped a restaurant group access growth finance

A restaurant group in the West Midlands approached BTG requiring funding to refurbish two of their existing sites and install a new commercial kitchen at a third location being taken on under a new lease.

The total funding requirement was £200,000. The business had strong trading history and consistent monthly revenues, but did not own the properties it operated from, limiting the options available from mainstream lenders.

We structured a solution using two separate unsecured business loans across different funders, with terms of five and six years respectively. This allowed the full funding requirement to be met without requiring property security, while keeping monthly repayments at a level the business could comfortably service.

With funding in place, the group was able to proceed with all three sites simultaneously, reducing the disruption to trading and completing the refurbishments ahead of the busy summer season.

What finance options are available for hospitality businesses?

Unsecured business loans: Available from £10,000 to £750,000, unsecured loans do not require assets as collateral. Approval is based on the creditworthiness and trading history of the business. These are well suited to working capital, refurbishments, or shorter-term funding requirements. A personal guarantee will be required.

Secured business loans: For larger funding requirements or where a lower interest rate is required, a secured loan uses commercial property or business assets as collateral. These typically offer higher loan amounts and longer repayment terms.

Asset finance: Asset finance allows hospitality businesses to acquire equipment, including commercial ovens, refrigeration units, coffee machines, EPOS systems, and furniture, through hire purchase or finance lease arrangements.

Commercial mortgages: For businesses looking to purchase or refinance hotel, restaurant, or pub premises, a commercial mortgage provides longer-term finance secured against the property.

Working capital loans: Short to medium-term finance to cover day-to-day operational costs, including wages, stock, and supplier payments. Particularly useful during seasonal downturns or periods of reduced footfall.

Apply for hospitality finance

We work with a wide panel of banks and alternative funders and can assess which funder provides the most competitive financial solution for your hospitality business.

If you would like to get a quote or need further information, simply fill in the form and we will contact you. If you want to speak to someone directly, you can call us on 0115 958 6872 and a member of our team will be happy to speak to you. Alternatively, email us at [email protected].