Catering Business Loans

From mobile kitchen equipment to a delivery van, fund your catering business with confidence. Explore business funding through Fundably. Eligibility criteria apply.

Typical Range

£5k – £150k

Average Loan

£25k

for catering

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

Minimum 6 months trading history (12 months preferred for better rates)
Registered UK business with a valid food hygiene rating
Evidence of a forward booking pipeline for larger unsecured loans
Personal guarantee typically required from the business owner

Loan types available

Unsecured Business Loan

Rate: 7.9% – 29.9% APR
Term: 1 – 5 years
Security: No security required
Best for: Covering costs through quieter months, marketing for the wedding and party season, or hiring temporary staff

Asset Finance

Rate: 5.4% – 13.9% APR
Term: 1 – 7 years
Security: The asset being financed
Best for: Mobile catering equipment, ovens, refrigerated vans, and event kitchen fit-outs

Merchant Cash Advance

Rate: Factor rate 1.15 – 1.45
Term: 3 – 18 months
Security: Repaid as a percentage of card takings
Best for: Caterers taking card deposits and payments who need fast, flexible top-up funding

Representative example

Borrow £25,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£806. Rates depend on your circumstances and the type of loan.

Common challenges

Revenue is heavily concentrated around wedding season and Christmas, with a marked quiet period in January and February
Deposits are often paid to venues and suppliers well before the client's balance payment is received
Client cancellations, particularly for weddings, can leave equipment and stock committed with no matching revenue
Mobile and event-based work means equipment and vehicles need to be reliable, since a breakdown on the day directly affects reputation

Bad credit?

Some specialist lenders consider catering businesses with imperfect credit. You may need a personal guarantee or higher rate, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

How can I fund my catering business through the quiet winter months?

An unsecured business loan is commonly used to smooth cash flow through January and February, when bookings are typically much lower than during wedding season or the Christmas party run-up. Some caterers plan for this by taking a short-term facility in late autumn once the busy season's income is confirmed, giving a buffer through the quieter start to the year.

Can I get finance for a catering van or mobile kitchen equipment?

Yes, asset finance is well suited to catering vehicles, ovens and mobile kitchen equipment, since the asset itself is used as security. This spreads the cost over the equipment's working life rather than requiring a large upfront payment, which is particularly useful when equipping a new van ahead of a busy season. Lendus can compare terms across lenders who understand the mobile and event-based nature of catering work.

What happens if I take deposits for weddings that then get cancelled?

Cancellation is a recognised risk in event catering, and lenders assessing your business will typically look at your overall booking volume and cancellation rate rather than treating any single cancellation as a red flag. Having a clear cancellation and deposit policy in your contracts, and factoring an allowance for cancellations into your cash flow planning, will support a stronger finance application.

Is a merchant cash advance suitable for a catering business?

It can be a good fit if you take a reasonable proportion of client payments by card, since repayments are collected as a percentage of card takings rather than a fixed monthly amount. This means repayments naturally track your trading pattern, which suits a business with pronounced busy and quiet periods across the year. It is generally better suited to shorter-term needs rather than a large one-off purchase such as a new van.

Equipment finance for catering businesses

Buying a specific machine or vehicle is usually cheaper than a general business loan, because the asset itself is the security. These are the items catering businesses most often fund, with the price range we see quoted in the UK.

Equipment	Typical price range	Finance page
Coffee Van	£10k to £55k	Coffee Van finance
Bain Marie	£600 to £5k	Bain Marie finance
Banqueting Furniture	£2k to £50k	Banqueting Furniture finance
Bar Equipment	£3k to £60k	Bar Equipment finance
Bean To Cup Machine	£2k to £12k	Bean To Cup Machine finance
Beer Dispense System	£800 to £12k	Beer Dispense System finance
Blast Chiller	£2k to £18k	Blast Chiller finance
Buffet Counter	£1k to £10k	Buffet Counter finance
Catering Equipment	£2k to £150k	Catering Equipment finance
Cellar Cooling	£1k to £6k	Cellar Cooling finance
Charcoal Grill	£2k to £20k	Charcoal Grill finance
Coffee Cart	£5k to £25k	Coffee Cart finance

Browse all equipment finance pages

Guides and resources

How to Get a Business Loan Business Loan Eligibility Secured vs Unsecured Best Business Loans UK iwoca Review Funding Circle Review

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For UK limited companies with at least 3 months’ trading and monthly revenue.