Running a Pub or Restaurant in the UK and in need of new appliances, more employees or just cash-flow? most pubs or restaurants can get financing of one kind or another as long as they’re established for more than 12 months with accounts.Lenders dont put restrictions on how the borrowed funds can be used as long as they’re invested in the main business.
This means that you can use business financing Pubs and Restaurants in the UK for:
- Equipment purchase, upgrade, repair or maintenance
- Menu expansion and innovation
- Staffing costs
- Site repair, renovation or expansion
- Purchasing new property or opening a new location
- Investing in business growth
- Marketing and promotions
- Rebranding
- Regulatory compliance
- Health and safety costs
- Technological innovation or implementation
- Energy costs
- Inventory/stock costs
- Tax costs
- Working capital
- Optimising cash flow management
- Seasonal costs
- Any other legitimate business-related expense
What business finance option is right for you’re business?
- Traditional business loans
- Business lines of credit
- Business credit cards
- Commercial mortgages
- Equipment financing
- Online loans
- Merchant cash advances
- Private investment
- Government loans
Each Business Financing for Pubs and Restaurants in the UK have different borrowing amounts, different costs, applicant requirements may differ. Pick the right type of financing for your business, you need to understand all of these options.
- What do you want the money for?
- How much? Apply for enough money to further your business needs.
- How quickly ?
- How much your business can afford to pay back?
- Will you need regular funding?
Knowing the answers to these questions will help you to sift through the many types of Business Financing for Pubs and Restaurants in the UK, select the one that best suits your businesses financial needs.
Here’s a quick breakdown of the financing types listed above:
Traditional business loans
Traditional business loans are the most common form of financing for businesses in the UK; at Quick Business Loans we have a panel of over 120 lenders and can fund businesses from £5,000 to £750,000. With Interest rates starting at 4% APR for secured loans, or 7% APR for unsecured loans. Repayment Terms can be anything from one month to five years.
Most lenders require applicants to have a minimum of two years of operational history but we can arrange funding with one years solid trading.
Business lines of credit
A business line of credit is a type of open-ended, revolving credit facility that allows a business to borrow money as and when it needs to. The lender approves the borrower for a credit facility up to a certain amount This amount is based on the business’s financial situation, and can range from £1,000 to £250,000. No lump sum is released at the start of the agreement. The borrower can access any amount of money it needs, whenever it needs to. Interest is only charged on what’s borrowed, and the interest rate charged depends on the borrower; it usually ranges from about 9% APR to 25% APR. Borrowed funds must be repaid, plus this interest, after payments are made the available credit amount resets – so the facility is reusable, time and time again. Application times differ from lender to lender but a few days on average for a lender to make a final decision.
Business credit cards
These can be very convenient and an easy portable credit option, business credit cards can have limits as low as £1,000, or as high as £250,000. As with regular credit cards, the interest rates are quite steep: most business credit cards charge between 15% APR and 30% APR. Many have annual fees too, but many also have perks and benefits specifically tailored for business owners.
Business credit cards are available from banks, digital providers and credit card companies. They can be extremely useful to have in hand in case of unexpected expenses, but are one of the most expensive forms of borrowing.
Commercial mortgages
Commercial mortgages use the piece of property being financed as collateral, and so can have very low interest rates, starting from just 4%. Borrowing amounts can be very large too, up to £10 million, with terms as long as 25 years. But, as with traditional business loans, qualifying for a commercial mortgage can be tough. Credit score, business history, expected revenue and other financial markers will all be taken into account, both in loan approval and in borrowing limit and interest rate. Similarly, applications can take some time to process, and a deposit is necessary – usually of at least 10%. However, for businesses looking for the large sums of money necessary to secure a property purchase, commercial mortgages are by far the most cost-effective route. At Quick Business Loans we have several lenders that solely deal with commercial mortgages, simply drop us a line for more information.
Equipment financing
Equipment financing can be sourced from a variety of lenders, at Quick Business Loans we have extensive experience in this funding field. Borrow from £1,000 to £500,000 is readily available with loan terms ranging from three to ten years make this can be a practical and affordable option, but it’s important to bear in mind the useful life of the equipment versus the loan term.
Merchant cash advances
Merchant cash advances (MCAs) are exactly what they state – they’re advances. As such, they don’t charge an interest rate, and there isn’t a fixed loan term. They also don’t require any collateral. Instead what happens is this: the business receiving the MCA gets a lump sum, which they can use however they wish. Then, every time the business receives income from a credit or debit card sale, a small percentage is deducted and rerouted to the lender, to repay the advance. This happens with each card sale, until the whole amount is repaid. Borrowing amounts range from £3,000 to £300,000, with the approved amount depending on the business’s expected income.
Government loans
The UK government has a few national (e.g. the Growth Guarantee Scheme) and many local funding programs aimed at helping small businesses in a variety of ways; some of these programs are structured as loans, and some as grants. Costs and funding amounts vary, as do terms. .