Hospitality business loans: questions and answers

All questions

What is the best business loan for a hospitality business?

It depends on what you need: a merchant cash advance for cash flow, a term loan for refurbishment, asset finance for equipment or a commercial mortgage for a freehold. Tally, which runs this site, can match you.

Why do lenders avoid hospitality?

Margins are tight, trade can be seasonal, and failure rates are higher than in some sectors. Specialist lenders still fund it.

Can a new restaurant get a business loan?

It's harder. Expect to need a deposit, an experienced operator or security. Equipment finance is often easier.

Are merchant cash advances good for restaurants?

They suit card-heavy trade but can be expensive. Compare the total repayable with a loan.

Can I get a loan to buy a pub?

Yes, usually with a commercial mortgage and a deposit.