Hospitality finance

Restaurant and pub finance: trading, operator, property

Specialist hospitality lenders exist and price competitively — they understand the sector, the seasonality, and the way trading accounts read. The specialist panel is small but active.

Audience: Hospitality operators

Situation: Hospitality lending assesses the operator and trading accounts as intensely as the bricks-and-mortar — and most commercial lenders don't underwrite hospitality.

Primary: Commercial Loans

The situation

Standard commercial lenders often decline hospitality outright, or offer terms that don't reflect a genuinely strong operator with a good site. The specialist market is different — a handful of lenders that do this daily.

How we approach it

We route hospitality deals to the lenders that underwrite them properly. Owner-operator with track record, freehold with trading kitchen, viable EBITDAR — these deals fund routinely at 60-70% LTV.

What that looks like in practice

Owner-operator freehold typically 60-70% LTV
Leasehold funding possible where lease term supports it
Working capital sometimes included alongside acquisition
First-time operators need experienced team around them
Refurb bridge + refinance where premises need investment

Typical timeline

Weeks 1-3
Trading accounts and operator history assessed.
Weeks 4-8
Specialist lender application, valuation, credit.
Weeks 8-14
Legals, completion.

Common questions

How is a pub or restaurant valued?

On fair maintainable trade (FMT) applied to a multiple, cross-checked against bricks-and-mortar. Strong trade = premium; weak trade = bricks value only.

Can I fund a first pub?

Yes if you have strong sector experience (as a manager elsewhere). Pure first-time operator without hospitality background — very hard.

What about the fixtures and fittings?

Usually funded via asset finance alongside the property mortgage — cleaner structure than bundling everything into the mortgage.