Can I finance a restaurant fit-out or refurbishment?

Short answer: Yes — here’s how restaurant fit-out and refurbishment finance works in the UK

Yes, established UK restaurants can finance a fit-out or refurbishment using commercial funding options such as asset finance, unsecured business loans, or merchant cash advances. The right option depends on the type of costs you need to cover, your trading history, and cash flow. Best Business Loans does not lend directly, but we help you get matched with suitable lenders and brokers who are active in the restaurant and hospitality sector.

Below, you’ll find a clear breakdown of what you can finance, the types of funding available, typical costs and terms, and how to improve your eligibility. You’ll also see practical steps to move forward and FAQs tailored to restaurants and food-led venues in the UK.

What can be financed in a restaurant fit-out?

A fit-out or refurb typically blends tangible assets with “soft” costs. Lenders often prefer funding items they can value and, where applicable, secure against. You can usually combine solutions to cover both equipment and non-asset costs.

Eligible costs many providers will consider

• Furniture, fixtures and equipment: commercial kitchen ranges, extraction, refrigeration, dishwashers, POS/EPOS, bar counters, seating, tables, lighting, and signage.
• Fit-out works: joinery, flooring, ceilings, wall finishes, washrooms, fire safety systems, and electrical/mechanical installations.
• Technology and systems: ordering kiosks, handheld devices, back-office software, stock control, and integrated booking platforms.
• Professional and compliance: design fees, project management, fit-out contractors, planning, licensing, and certifications.
• Working capital during the refresh: temporary cash flow support during closure or partial trading, including launch marketing.

Items sometimes excluded or treated carefully

• Irrecoverable VAT and purely cosmetic spend may be viewed cautiously by some lenders.
• Landlord or structural works are not always fundable unless included in a wider project with clear value.
• Start-up restaurants or sole traders are often excluded by many commercial lenders we work with.

Where an asset can be identified, asset finance is commonly used. For blended refurb costs, unsecured loans or a mix-and-match approach can be more suitable. A specialist hospitality lender may be more flexible for branded venues and multi-site operators.

The main finance options for restaurant fit-outs

There is no one “best” product, as each option suits different cost types and cash flow profiles. Many restaurants fund equipment via asset finance and top up project costs with a working capital loan or merchant cash advance.

Asset finance (lease or hire purchase) for equipment and FF&E

• What it covers: ovens, extraction systems, refrigeration, coffee machines, EPOS, furniture, and signage.
• How it works: the lender finances the kit; you repay over 2–5 years typically, with options to own at the end (HP) or continue leasing.
• Why it suits restaurants: preserves cash, spreads VAT on HP, and matches repayments to the useful life of equipment.

Unsecured business loan for wider refurb costs

• What it covers: trades, décor, non-asset elements, design fees, and contingency.
• How it works: lump sum repaid over 6–60 months, usually with fixed monthly repayments.
• Why it suits restaurants: flexible use of funds, quick to deploy, useful for soft costs that asset finance won’t cover.

Merchant cash advance (MCA) for card-led venues

• What it covers: working capital during refurbishment and reopening promotion.
• How it works: funding is advanced against future card takings; repayments flex as a small percentage of daily card revenue.
• Why it suits restaurants: seasonal-friendly and aligns with turnover; useful when cash flow varies week to week.

Overdrafts and commercial cards for short-term needs

• What they cover: bridging small gaps, paying deposits, or smoothing supplier timelines.
• How they work: revolving lines with interest only on drawn amounts.
• Why they suit restaurants: flexible, but usually not a long-term solution for the full project spend.

Government-backed options (e.g., Growth Guarantee Scheme)

• What they are: facilities delivered by accredited lenders with partial government guarantees.
• How they help: can unlock viable funding for eligible UK businesses where security is limited.
• Important: eligibility and terms vary, and you’ll still be responsible for repaying the loan in full.

For sector-specific insights and options tailored to hospitality, see our guidance for restaurants and hospitality businesses here: restaurant finance for UK restaurants and hospitality.

Eligibility, documents, and how to improve your chances

Lenders assess affordability, stability, and project viability. They also consider the quality of your refurbishment plan and whether the investment will reasonably improve revenue or efficiency.

What lenders typically look for

• UK limited company or LLP with established trading history and filed accounts.
• Consistent turnover, clear cash flow, and manageable existing debt service.
• A credible refurb plan with quotes, timelines, and projected impact on trading.
• Good payment conduct, sensible credit utilisation, and no recent CCJs.
• For asset finance: identifiable, financeable equipment from reputable suppliers.

Documents checklist for a smoother process

• Last 6–12 months’ business bank statements and latest filed accounts.
• Management accounts or P&L and balance sheet if recent accounts aren’t current.
• Fit-out specification, supplier quotes, and project timeline.
• Lease details and landlord consent if required for works or equipment install.
• Card takings reports if considering a merchant cash advance.

Practical ways to strengthen your application

• Phase the project so funding aligns with milestones and reduces cash strain.
• Mix products: asset finance for equipment, loan or MCA for soft costs and marketing.
• Build in contingency and show break-even assumptions and sensitivities.
• Confirm licensing, planning, and compliance details upfront.

At BestBusinessLoans.ai, our matching process helps you approach providers aligned to your sector, loan size, and use-case. That saves time and reduces “no” responses that can slow you down.

Costs, terms, examples, and timelines

Every facility is subject to status, lender criteria, and project specifics. The figures below are illustrative, not offers, and do not constitute financial advice.

Typical terms in the market

• Asset finance terms: 24–60 months common, sometimes up to 72 months for durable kit.
• Unsecured loan terms: 6–60 months with fixed repayments to suit cash flow.
• MCA: flexes with card takings; effective durations often 6–18 months depending on turnover.

Illustrative repayment examples (for guidance only)

• £50,000 kitchen equipment on hire purchase over 5 years could result in a fixed monthly repayment, with VAT treatment dependent on your VAT status and HP structure.
• £80,000 unsecured refurbishment loan over 48 months spreads soft costs and contractor payments into predictable instalments.
• £40,000 MCA repaid via a fixed percentage of card sales flexes through seasonal peaks and troughs.

Rates and fees vary by asset type, credit profile, trading performance, and security. Lenders may charge arrangement fees, documentation fees, and early settlement terms may apply.

How long does it take to secure funding?

• Asset finance for standard equipment can be fast once quotes and ID are ready.
• Unsecured loans can complete in days to a couple of weeks, depending on complexity.
• MCAs are often quick if you can evidence card takings and trading continuity.

How our AI-led matching helps you move quicker

• Step 1: Complete a Quick Quote with your business details and project goals.
• Step 2: Our system analyses your profile against current lending appetite.
• Step 3: We introduce you to suitable lenders or brokers for your situation.
• Step 4: You compare options and choose what fits your timelines and cash flow.

We don’t provide loans ourselves. We introduce you to relevant providers so you can make informed choices with less leg-work.

FAQs, next steps, and key takeaways

This section answers the most common questions restaurants ask about funding fit-outs and refurbishments. If you need help before you submit a quote, our UK team can point you in the right direction.

Can I finance both equipment and refurb works together?

Yes, often via a blended approach. Use asset finance for identifiable equipment and an unsecured loan or MCA for soft costs and contractors. Some lenders offer project facilities that combine elements under one umbrella.

Can I finance VAT or deposits?

VAT can sometimes be included in hire purchase structures and spread. Deposits and stage payments may be covered by loans or revolving facilities, subject to lender approval.

Do I need landlord consent?

If works change the premises materially or equipment is fixed to the property, consent is commonly required. Lenders may request a copy of the lease and written consent before drawing down.

Can I finance a dark kitchen, takeaway, or multi-site refurb?

Yes, provided the business is established and meets lender criteria. Multi-site operators may access larger facilities where performance data and brand strength are clear.

Will my credit score affect approval?

Yes, business and sometimes director credit conduct matters. Strong trading, stable cash flow, and a credible plan can offset some weaknesses.

Are start-ups or sole traders eligible?

We currently support established UK companies rather than start-ups or sole traders. This reflects lender appetite for commercial facilities in the hospitality sector.

Is there security or a personal guarantee?

Asset finance is typically secured on the equipment itself. Unsecured loans and MCAs may request a personal guarantee depending on the profile and amount.

What if I plan to refurb while trading?

You can phase works and funding to minimise downtime impact. Lenders may want to understand the plan for continuity and safety compliance during the project.

How Best Business Loans helps

We use AI-driven matching to connect you with lenders and brokers who are active in restaurant and hospitality finance. You save time, compare options, and move forward with confidence.

Important compliance information

• Best Business Loans is an independent introducer, not a lender or broker.
• Information on this page is for general guidance only and is not financial advice.
• All finance is subject to status, affordability checks, and lender criteria.
• Eligibility checks and indicative quotes do not guarantee an offer.

Key takeaways

• Yes — you can finance a restaurant fit-out, typically via asset finance, unsecured loans, or MCAs.
• Match the product to the cost: asset finance for equipment, loans or MCAs for soft costs.
• Prepare quotes, project plans, and financials to speed up approval.
• Consider phasing the project and combining products for flexibility.
• Our platform helps you get introduced to providers aligned to restaurants and hospitality.

Ready to explore options for your refurb or fit-out? Complete a Quick Quote for a free, no-obligation introduction to suitable providers. It’s fast, secure, and designed to save you time.

About Best Business Loans

BestBusinessLoans.ai is an independent introducer that helps established UK businesses find suitable finance providers. We use AI-led matching to connect you with relevant lenders or brokers based on your profile and funding goals.

We do not offer loans directly. Submitting a Quick Quote is free, with no obligation, and your information is handled securely and confidentially.

Important: All finance is subject to status and lender criteria. The information on this page is general in nature and not financial advice. Consider professional advice for your specific circumstances.