Restaurant & Catering Finance

Asset Finance and Loan Options for UK Restaurant & Catering Finance

Running a successful restaurant, café, takeaway, or catering business in the UK takes more than great food and service — it requires smart financial management. Whether you’re opening a new site, upgrading your kitchen, hiring more staff, or preparing for seasonal peaks, Restaurant & Catering Finance provides the flexible funding solutions needed to thrive in a competitive market.

Fortunately, there are a range of finance solutions tailored to UK restaurant and catering businesses, designed to support daily operations, capital investments, or long-term growth.

From asset finance for kitchen equipment to merchant cash advances for short-term cash flow, this guide covers the full spectrum of loan and finance options available to hospitality businesses across the UK.

Why Finance is Crucial for the UK Restaurant and Catering Sector

The hospitality industry is fast-moving and cash-sensitive. Restaurants and caterers face a unique set of challenges:

  • High upfront costs for premises, kitchen equipment, and staff
  • Variable income due to seasonality and consumer demand
  • Thin margins and rising overheads (energy, food, wages)
  • Need to adapt quickly to market trends, delivery platforms, or health & safety regulations

Finance gives you the ability to:

  • Invest in quality equipment without compromising working capital
  • Smooth out cash flow during quieter periods
  • Fund refurbishments, marketing campaigns, or expansions
  • Deal with unexpected expenses or supply chain issues
  • Invest in digital tools, from EPOS to ordering systems

Accessing the right type of finance at the right time can provide the breathing room or growth opportunity your business needs.

Types of Finance for UK Restaurant and Catering Businesses

Below we explore the most common and practical financing options available to restaurant owners, catering companies, cafes, food trucks, and hospitality operators across the UK.

  1. Asset Finance: Lease and Hire Purchase

Asset finance enables you to acquire essential equipment and assets without the need for a large upfront payment. Instead, you spread the cost over time through regular fixed payments.

There are two main types of asset finance:

Hire Purchase (HP)

  • You buy the asset through monthly instalments.
  • Once the final payment is made, ownership is transferred to your business.
  • You may be asked to pay a small deposit (e.g. 10%).
  • Interest is fixed, making budgeting predictable.

Best for: Long-life assets you plan to own, such as ovens, grills, dishwashers, and commercial refrigeration units.

Finance Lease

  • The finance provider buys the equipment, and you lease it for an agreed period.
  • You use the asset without owning it.
  • At the end of the term, you can return the equipment, extend the lease, or purchase it at market value.

Best for: Fast-evolving technology like POS systems, display screens, or short-term kitchen equipment needs.

What Can Be Financed?

Asset finance can cover almost any tangible equipment your business needs, including:

  • Commercial ovens, grills, fryers, steamers
  • Refrigerators, freezers, chillers, blast chillers
  • Coffee machines and bar equipment
  • EPOS systems and payment terminals
  • Kitchen ventilation and extraction systems
  • Tables, chairs, and front-of-house furniture
  • Delivery vehicles or refrigerated vans
  • Fit-out and shopfitting costs

Instead of draining your bank balance, you can acquire the equipment now and pay as you earn.

  1. Business Loans: Secured and Unsecured

Business loans are one of the most common ways restaurants and caterers access capital. These loans can be used for nearly any business purpose — from renovations to restocking your cellar.

Unsecured Business Loans

  • No security is required (no need to pledge property or equipment).
  • Ideal for businesses with a strong trading history and cash flow.
  • Typically range from £5,000 to £500,000.
  • Repayment terms from 6 months to 5 years.

Best for: Short-term working capital, staffing costs, seasonal demand, or marketing.

Secured Business Loans

  • You offer an asset (property, equipment, etc.) as collateral.
  • Larger loan amounts and lower interest rates may be available.
  • Suitable for longer-term investment or expansion plans.

Best for: Acquiring premises, launching a new site, large-scale refurbishments.

Both options are available from UK banks, alternative lenders, and hospitality-focused finance brokers.

  1. Merchant Cash Advance (MCA)

A merchant cash advance is a revenue-based financing option ideal for hospitality businesses with strong card turnover.

How it Works:

  • You receive a cash lump sum upfront (e.g. £30,000).
  • Repayments are taken as a fixed percentage of your card sales (e.g. 10% of daily takings).
  • Repayment automatically adjusts with your revenue — no fixed monthly payments.
  • No APR — instead, you agree to repay a set amount (e.g. £30,000 advanced, £36,000 total repayable).

Best for: Restaurants, cafés, or takeaways with strong card income but limited security or credit history.

Advantages:

  • Fast approval — often within 24–72 hours
  • No fixed payments — repayments match your trading patterns
  • Flexible and unsecured
  • Does not affect existing bank loans or credit lines

It’s a good option for covering short-term gaps, investing in promotions, hiring staff, or preparing for busy seasons.

  1. Refinance or Equipment Refinance

Refinancing is a way to unlock cash from assets you already own or restructure existing debt into a more manageable form.

Types of Refinance:

Asset Refinance

  • Use equipment you already own as security.
  • Raise a lump sum by borrowing against the asset’s value.
  • You continue to use the equipment while repaying the loan.

Debt Consolidation

  • Combine multiple loans or repayments into a single monthly payment.
  • Improve cash flow, reduce interest costs, or extend repayment terms.

Best for: Businesses with high-value kitchen equipment or vehicle fleets.

Refinance is a practical option for freeing up working capital without selling or replacing assets.

When to Use Finance in Your Restaurant or Catering Business

Finance can be used across every stage of a hospitality business. Below are common scenarios where funding can help:

Business ScenarioRecommended Finance Option
Opening a new restaurant or caféSecured loan or hire purchase for equipment
Replacing ovens, fridges, or kitchen techAsset finance – HP or lease
Slow season cash flow managementMerchant cash advance or unsecured loan
Upgrading furniture and décorAsset finance or business loan
Launching a takeaway/delivery serviceAsset finance for delivery equipment + short-term loan
Rebranding or shopfittingBusiness loan or fit-out finance
Buying out a partner or second locationSecured business acquisition loan
Refurbishing outdoor dining spaceEquipment lease or asset refinance
VAT or Corporation Tax paymentShort-term tax loan or working capital loan

Benefits of Finance for Hospitality Businesses

Investing in your business is often essential — but saving up large amounts of capital takes time and may leave you underprepared for growth or seasonal opportunities.

Here’s why finance makes strategic sense:

BenefitDescription
Preserve Working CapitalKeep cash on hand for day-to-day needs, emergencies, or marketing.
Spread the CostTurn big expenses into affordable monthly repayments.
Access Equipment ImmediatelyStart using ovens, coffee machines, or EPOS systems today.
Improve BudgetingFixed payments make forecasting easier.
Tax EfficientLease payments and interest can often be deducted as business expenses.
Flexible TermsChoose repayment lengths and structures to suit your revenue cycle.
No Equity RequiredUnlike investors, lenders won’t take a stake in your business.

Finance That Fuels the UK Hospitality Sector

From independent coffee shops and Michelin-starred restaurants to mobile catering units and dark kitchens, the UK’s food and drink sector is one of the most dynamic — and demanding — in the economy.

With the right mix of asset finance, loans, and short-term funding, your business can:

  • Operate efficiently
  • Adapt to changing trends
  • Expand when opportunity strikes
  • Weather seasonal or economic downturns
  • Keep cash flow strong without cutting corners

Finance is not just a safety net — it’s a growth tool. Explore your funding options today and unlock the potential in your restaurant or catering business.

WHO ARE WE?

Gable Asset Finance is business finance brokerage specialising in asset and equipment finance. We offer confidential and non-judgemental advice on business finance options. We work with businesses of all sizes and commercial sectors finance assets, machinery and equipment. We have found asset, machinery, vehicle and equipment facilities for hundreds of businesses and remain in contact with all our clients.

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