Industry Guide

Hospitality Business Funding UK 2025

Funding for pubs, hotels, restaurants, cafes. 365 Finance (hospitality specialists, same-day approval), iwoca (best rates). £5k-£250k for equipment, refurb, working capital for your business growth.

£5k-£250k

Funding range

Same-day

365 Finance

1.08x

iwoca best rates

5-10%

Equipment APR

Best Hospitality Funding Providers

365 Finance

Hospitality Specialists

#1 FOR HOSPITALITY

Why #1 for hospitality:

Understand seasonal patterns, alcohol purchasing cycles, weekend peaks

Speed:

Same-day approval (fastest)

Factor:

1.15-1.40x

Perfect for:

Restaurants, pubs, hotels, cafes

iwoca

Better Rates

Factor:

1.08-1.25x (saves £3k-£7k vs 365 on £50k)

Trade-off:

Less hospitality-specialized, 24hr approval vs same-day

Choose if:

Rate more important than specialist service

Equipment Finance

For Kitchen/Bar Equipment

Cost:

5-10% APR (much cheaper than MCA)

Best for:

Commercial ovens, fridges, coffee machines, POS

Amount:

£2k-£100k per item

Hospitality-Specific Scenarios

Pub Refurbishment (£50k)

Best:

365 Finance MCA if need money fast (same-day), or Funding Circle loan if can wait (save £10k)

Restaurant Kitchen Equipment (£30k)

Best:

Equipment finance (5-8% APR) vs MCA's 15-40%. Saves £3k-£8k.

Hotel Seasonal Working Capital (£75k)

Best:

365 Finance MCA - repay heavily in summer (high occupancy), minimally in winter (low occupancy). Perfect flex.

Cafe Expansion (£40k)

Best:

If urgent: iwoca MCA (24hrs, 1.08-1.25x). If planned: Funding Circle loan (save 60%).

Seasonal Cash Flow Challenge

Why hospitality loves MCAs

August: £8k/day sales → £1,200/day repayment (15%) - affordable

February: £1,500/day sales → £225/day repayment (15%) - affordable

Why fixed loans kill hospitality

Fixed £2,000/month payment

August: £240k revenue → can afford £2k

February: £45k revenue → cannot afford £2k → default

Best Lender by Hospitality Type

Restaurants:

365 Finance (hospitality experts)

Pubs:

365 Finance or iwoca

Hotels/B&Bs:

365 Finance (seasonal understanding)

Cafes:

iwoca (better rates for smaller amounts)

Takeaways:

iwoca or YouLend

Conclusion

365 Finance is purpose-built for hospitality - same-day approval, understands seasonality, dedicated managers. Worth the slightly higher rates (vs iwoca) for specialized service.

iwoca if cost-focused: Saves £3k-£7k on £50k vs 365, still good for hospitality growth.

Hospitality Funding Experts

365 Finance, iwoca, equipment finance

Compare all options for pubs, hotels, restaurants

Get Hospitality Quotes

Frequently Asked Questions

What are the best hospitality funding providers?

Best providers: 365 Finance (hospitality specialists, understand seasonal patterns and alcohol purchasing cycles, same-day approval fastest, factor 1.15-1.40x, perfect for restaurants/pubs/hotels/cafes), iwoca (better rates 1.08-1.25x saves £3k-£7k vs 365 on £50k, trade-off less hospitality-specialized 24hr approval vs same-day, choose if rate more important than specialist service), Equipment Finance (for kitchen/bar equipment, 5-10% APR much cheaper than MCA, best for commercial ovens/fridges/coffee machines/POS, £2k-£100k per item).

Why do hospitality businesses love MCAs?

Hospitality businesses love MCAs because repayments flex with sales. August: £8k/day sales → £1,200/day repayment (15%) - affordable. February: £1,500/day sales → £225/day repayment (15%) - affordable. vs Fixed loans: Fixed £2,000/month payment, August £240k revenue can afford £2k, February £45k revenue cannot afford £2k → default.

Which lender is best for different hospitality types?

Best lender by type: Restaurants - 365 Finance (hospitality experts). Pubs - 365 Finance or iwoca. Hotels/B&Bs - 365 Finance (seasonal understanding). Cafes - iwoca (better rates for smaller amounts). Takeaways - iwoca or YouLend.