Best UK business loans for hospitality
Hospitality lending is shaped by card flow. The lenders that win this segment are MCA specialists with sector underwriting plus a small number of mainstream term-loan lenders that understand seasonal cashflow.
Founder & Managing Director, Muswell Rose, FundBiz
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind FundBiz. His background runs through commercial finance, mortgages and fintech, including as managing director of an invoice finance business. He oversees FundBiz's specialty finance comparison and the logic behind how businesses are matched to lenders.
Last reviewed: 12 June 2026
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Merchant cash advance + term loan · £3.5k to £500k · Same day
Hospitality MCA specialist with the deepest sector underwriting.
Read full Capify review → -
Merchant cash advance · £10k to £500k · 24 to 48 hours
Direct MCA, no broker fee, strong on £25k+ tickets.
Read full 365 Business Finance review → -
Merchant cash advance and BNPL for SMBs · £1k to £1m · Same day to 48 hours
Embedded MCA via Worldpay / Barclaycard partnerships hospitality often uses.
Read full Liberis review → -
Flexi-loan / line of credit · £1k to £500k · Same day to 24 hours
Mainstream working capital for the non-MCA gap; flexi-loan helps with VAT bill timing.
Read full iwoca review → -
SME term loan + commercial mortgage · £150k to £5m · 5 to 10 business days
Commercial mortgage and asset finance for hospitality investing in property or fit-out.
Read full Allica Bank review →
Side-by-side comparison
| Lender | Typical rate | Ticket | Decision | Best for |
|---|---|---|---|---|
| Capify | Factor rate 1.15 to 1.45 | £3.5k to £500k | Same day | Hospitality MCA specialist with the deepest sector underwriting. |
| 365 Business Finance | Factor rate 1.10 to 1.40 | £10k to £500k | 24 to 48 hours | Direct MCA, no broker fee, strong on £25k+ tickets. |
| Liberis | Factor rate 1.10 to 1.40 | £1k to £1m | Same day to 48 hours | Embedded MCA via Worldpay / Barclaycard partnerships hospitality often uses. |
| iwoca | From 2% per month | £1k to £500k | Same day to 24 hours | Mainstream working capital for the non-MCA gap; flexi-loan helps with VAT bill t... |
| Allica Bank | From 7.99% APR | £150k to £5m | 5 to 10 business days | Commercial mortgage and asset finance for hospitality investing in property or f... |
What is the best business loan for a UK restaurant or pub?
For day-to-day cash flow against card takings, MCA from Capify or 365 Business Finance. For VAT bills and seasonal stock, an iwoca flexi-loan. For larger fit-out or property investment, an Allica Bank commercial mortgage or asset finance facility.
How does merchant cash advance work for UK hospitality?
You receive a lump sum, repaid as a percentage of daily card takings. Repayment scales with takings: busy weeks repay faster, quiet weeks slower. Sized against six months of card-machine history. Pricing is by factor rate, typically 1.20 to 1.40 total repayment.
Can a new UK hospitality business under 12 months get a loan?
On MCA, yes, with six months of card-machine history. On mainstream term loans, rarely. Pre-revenue concepts almost never; the British Business Bank Start Up Loan is the realistic first option for sub-six-month operators.
What credit checks apply to UK hospitality lending?
Soft search at quote on Capify, 365 and most reputable MCA lenders. Hard search on full application, visible to other lenders for 12 months. The director credit profile is checked alongside the company; sole-trader pubs sit on the director file.
Does Bounce Back Loan history affect new UK hospitality lending?
Active or unpaid Bounce Back Loans materially limit options. Most lenders will not lend additional unsecured debt while a BBL is in arrears. Repaid or restructured BBLs are largely neutral for current underwriting.
How we ranked these
We weight hospitality sector specialism (30%), card-flow underwriting (25%), decision speed (20%), eligibility breadth (15%), decline handling (10%). Rankings reflect our published editorial methodology, not any commercial arrangement. See our /methodology/ for the full basis.
Methodology weights
Weights specific to "Best UK business loans for hospitality":
- Hospitality sector specialism30%
- Card-flow underwriting25%
- Decision speed20%
- Eligibility breadth15%
- Decline handling10%
Read the full methodology for how we score and rank every lender on the FundBiz panel.
Also considered
- YouLend (if you take Just Eat / Deliveroo)
- Funding Circle (mainstream term loans)
- Bizcap (post-decline)
Not for
Pre-revenue concepts; sub-6-month-trading hospitality.
Check eligibility in two minutes
Tell us ticket size, trading history and sector. We match you against the FundBiz specialty panel and surface the lenders most likely to approve your file, including post-decline routes. Limited companies, LLPs and partnerships of 4+.
Open the eligibility checker →Reviewed by Oliver Mackman, Director, Best Business Loans Ltd. Last reviewed: 2026-06-12. Editorial by Best Business Loans Ltd (16833937).