Pub & Bar Business Loans: Rates, Options & Eligibility

Typical Range

£10k – £2m

Average Loan

£120k

for pub & bar

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

Minimum 6 months trading history as a pub or bar operator
Valid premises licence and personal licence holder on site
Annual turnover of at least £100,000 for larger loan amounts
Evidence of lease assignment approval or freehold ownership for secured lending

Loan types available

Unsecured Business Loan

Rate: 7.9% – 27.9% APR
Term: 1 – 5 years
Security: No security required
Best for: Refurbishments, beer garden upgrades, new stock, and seasonal cash flow support

Secured Business Loan

Rate: 4.9% – 14.9% APR
Term: 1 – 20 years
Security: Pub premises (freehold or long leasehold) or residential property
Best for: Purchasing a freehold pub, major renovations, or acquiring a new site

Merchant Cash Advance

Rate: Factor rate 1.15 – 1.50
Term: 3 – 18 months
Security: Repaid as a percentage of card takings
Best for: Pubs with strong card turnover needing fast, flexible working capital

Representative example

Borrow £120,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£3,866. Rates depend on your circumstances and the type of loan.

Market context

There are approximately 46,000 pubs in the UK, contributing over £26 billion annually to the economy. The sector employs around 900,000 people, making it one of the largest hospitality employers in the country.

Common challenges

Rising energy costs and beer duty increases squeezing already tight margins
Tied pub agreements limiting purchasing freedom and reducing profitability
Seasonal trade variations with quieter midweek and winter periods
Competition from supermarket alcohol pricing and changing consumer drinking habits

Bad credit?

Some specialist lenders consider pub & bar 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

Can I get a loan to buy a pub freehold?

Yes, pub freehold purchases are one of the most common uses of secured business loans in the hospitality sector. Lenders typically fund 60-75% of the purchase price, with the property itself acting as security. You'll need a deposit of 25-40% and evidence that the pub's trading income can service the loan. Lendus works with specialist hospitality lenders who understand pub valuations and wet/dry sales splits.

What funding is available for pub refurbishments?

Refurbishment finance typically ranges from £20,000 to £250,000 depending on the scope. Unsecured loans work well for cosmetic upgrades, while secured lending suits major structural work. Some breweries and pub companies offer refurbishment loans to tenants, though these often come with tie-in conditions. Independent finance through Lendus gives you more flexibility and potentially better terms.

Is it harder to get a loan for a tied pub versus a free house?

Tied pubs can be slightly harder to finance because the tie agreement limits your purchasing options and can reduce margins. However, many lenders are experienced with tied agreements and will assess the overall profitability of the business. Free houses generally attract better terms because of higher margins and more flexibility. Lendus can advise on lenders who understand both models.

Can I get finance to add a kitchen or food offering to my pub?

Absolutely. Adding or upgrading a food offering is one of the best investments a pub can make, and lenders view it positively as it diversifies revenue. Kitchen fit-outs typically cost £30,000-£100,000 and can be funded through unsecured loans or asset finance for specific equipment like commercial ovens and extraction systems. The additional food revenue often covers the repayments comfortably.

Equipment finance for pub & bar 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 pub & bar businesses most often fund, with the price range we see quoted in the UK.

Equipment	Typical price range	Finance page
Coffee Machine	£2k to £30k	Coffee Machine 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

Understand the loan structures

The table above shows what a pub & bar business borrows for. These pages explain how each kind of borrowing actually works, what it costs and who it suits.

Business loans for bad credit Government-backed business loans Merchant cash advance Revolving credit facilities Business loans with no personal guarantee Secured business loans Start up business loans Unsecured business loans

Ready to find the best pub & bar loan?

Explore business funding options through Fundably.

Check Eligibility →

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

Pub & Bar Business Loans