Hospitality Finance
If your business is in the hospitality industry, you can access the finance you need to help it grow. From short-term working capital to longer-term funding for refurbishments or expansion, use our free comparison tool to find and compare lenders quickly.
- Compare a wide range of lenders and rates
- Check your eligibility in minutes
- Find out how much you could borrow
It's fast, free and won't affect your credit score
What is hospitality financing?
A hospitality loan or hospitality finance is a funding solution for those in the hospitality industry. With flexible repayment terms, you can access the capital you need to reinvest in your business and confidently compete in a busy marketplace.
You could benefit from a hospitality business loan if you’re in the food and beverage, accommodation, or tourism sectors, which include:
Resilient outlook for the hospitality industry
Despite ongoing cost pressures across the UK hospitality sector, there are reasons to be optimistic, especially in the hotel market in 2025 and heading into 2026. UK hotels have shown remarkable resilience, ranking second in Europe for occupancy rates, with growth in regional cities particularly strong.
Accessing finance for hospitality and tourism gives your business the funding it needs to grow and adapt. Keep reading to learn more about hospitality finance.
How can I get hospitality finance?
You can apply for a hospitality business loan through a bank or an alternative finance provider.
If you apply for a loan through a bank, you might find they’re not as flexible with repayment options or loan types as an alternative lender.
Even if you’ve been declined by a bank, alternative lenders may still be able to help. You can use a broker, such as Capalona, to compare and find the best loan and lender for your needs.
What types of hospitality finance are there?
Hospitality finance can come in the form of business loans (both secured and unsecured), invoice finance, asset finance, and merchant cash advance. Which type of finance you choose depends on your needs.
Business loans
A business loan is one of the most common forms of funding for hospitality business needs. You borrow a lump sum of money, and you repay it through fixed monthly instalments with interest. You could use the loan to help fund the cost of refurbishing hotel rooms, upgrading kitchen equipment, or expanding into new locations. These loans can be either unsecured or secured. A secured loan allows you to use a high-value asset such as commercial property to secure against the value of the loan. However, an unsecured loan doesn't require you to secure business assets against the loan.
Invoice finance
Invoice finance can help you unlock up to 95% of the value of your unpaid invoices. This helps you keep on top of a healthy cash flow for your hospitality business, ultimately ensuring wages and other expenses are paid on time. This option is most suitable for hospitality businesses that supply services on invoice, such as event venues or contract catering.
Asset finance
Asset finance allows hospitality businesses to spread the cost of essential equipment through hire purchase or leasing, including commercial kitchen equipment, POS systems, laundry facilities, or hotel furnishings. This helps you access what you need to support growth without high upfront costs.
Merchant cash advance
If you take credit card payments in your hospitality business, you can repay a merchant cash advance in line with your card payments. This means your monthly repayments aren’t fixed. Instead, you repay based on a percentage (usually 10%) of sales made that month, so you repay more of your loan when you make more money and vice versa. A merchant cash advance is an excellent option for seasonal businesses, particularly hotels, pubs and restaurants that experience seasonal peaks and quieter periods.
What can I use hospitality finance for?
A loan for a hospitality business can be used to support the day-to-day operations or invest in the long-term growth of your business. It can be used to finance new ovens or other business equipment, drive down stock prices by buying in bulk, or use your new working capital to invest in new markets.
Does my business qualify for hospitality finance?
Qualifying criteria differ depending on the type of finance you want. But, as an example, to qualify for an unsecured business loan, you must:
- Have a UK-registered business and bank account
- Annual turnover of at least £10,000
- Have been operating for 3 months minimum
Check your eligibility in minutes for free.
Why use Capalona to find hospitality finance?
As a broker, we offer a free comparison service for all UK SMEs looking to find and compare alternative lenders. We help you instantly compare loans, so you don’t have to spend endless hours seeking the best deals.
About the author
Adrian T
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Amazingly fast, efficient service, minimal paperwork. So much faster than my business bank of twelve years.
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