Secured Loans for Hospitality Businesses

The best secured business loan for a hospitality business depends on what you are securing it against and why you are borrowing. Property-backed term loans and commercial mortgages tend to suit pubs, hotels and restaurants that own their premises, bridging finance suits time-sensitive purchases or refurbishments, and revenue-based finance can suit venues with steady card takings but limited property to pledge. This roundup explains the main options and compares lenders fairly so you can see where each one fits.

Hospitality is a distinct lending case. Cash flow is seasonal, margins are tight, and many operators lease rather than own, so the security question is central. Below we set out what a secured loan actually is, the main types, how we compared the market, and a shortlist of lenders with clear roles.

What is a secured business loan?

A secured business loan is borrowing that is backed by an asset the lender can recover if the loan is not repaid. That asset is usually commercial property, but it can also be equipment, vehicles or, in some structures, future card sales. Because the lender has recourse to security, secured lending can often reach larger sums and longer terms than unsecured borrowing. For a lender-by-lender view across all sectors, see our comparison of secured business loans from UK lenders.

The trade-off is real. You are placing an asset at risk, and if you default the lender may take steps to recover it. Costs vary widely by borrower profile, the strength of the security and the term, so always confirm current rates and fees directly with the lender before you commit.

The main types of secured finance for hospitality

• Property-backed term loans are lump sums repaid over a fixed period, secured against premises you own. They suit expansion, buying out a partner or consolidating existing debt.
• Commercial mortgages are long-term loans to buy or refinance a trading premises, such as a freehold pub or hotel. Terms can run many years, which spreads the cost.
• Bridging finance is short-term, property-secured borrowing designed to be repaid quickly, often within months. It suits auction purchases, refurbishing a site before refinancing, or acting fast on an opportunity.
• Asset finance uses equipment as security, so the kitchen, brewing kit, furniture or vehicles effectively secure the borrowing. It spreads the cost of large purchases without tying up property.

Alongside these sits revenue-based finance (sometimes called a merchant cash advance), where repayments flex as a percentage of your card takings. It is not secured against property, but it is a common hospitality option, so we include it here for a fair comparison.

How we chose

Greenwood Capital is a whole-of-market broker based in Manchester, so we look across lenders rather than pushing one product. This roundup is educational and impartial. It is not a recommendation to apply for any particular loan, and your own circumstances will decide what is suitable.

We selected lenders that are genuinely active in hospitality, that cover a spread of needs (property, equipment and revenue), and that operate transparently. We weighed the type of security required, the borrowing range and term flexibility, how well the structure fits seasonal cash flow, and any watch-outs an operator should know before committing. We do not invent rates. Where cost matters, we point you to confirm current terms directly.

Shortlist of lenders for hospitality

Together, best for bridging and complex property-backed cases

Together is a specialist secured lender that offers bridging finance, commercial mortgages and buy-to-let style products, and it is known for considering cases that high street banks decline. For hospitality operators who own property, that flexibility can matter, for example when accounts are seasonal or the building is unusual.

It tends to suit borrowers who need speed on a property purchase or refurbishment, or who have a clear exit such as refinancing or a sale. The watch-out is that specialist and short-term lending usually carries higher cost than a mainstream commercial mortgage, and bridging in particular needs a credible repayment plan, so check the total cost including any arrangement and exit fees and confirm current figures.

Shawbrook, best for commercial mortgages and structured property loans

Shawbrook is a specialist bank that lends against commercial and semi-commercial property, including hospitality assets, and it also offers asset finance. It sits between the high street and short-term specialists, often taking a considered view of trading businesses that need a longer-term, property-secured facility.

It suits operators buying or refinancing a freehold trading site who want a term measured in years rather than months. The watch-out is that underwriting is thorough, so expect to provide detailed accounts and a clear picture of trading performance, and confirm the current rate, term and fees for your specific profile.

YouLend, best for fast funding against card takings

YouLend provides revenue-based finance, advancing a lump sum that you repay as an agreed percentage of your future card and online sales. Repayments rise when trade is strong and ease when it is quieter, which maps neatly onto hospitality’s seasonal peaks and troughs.

It suits venues with consistent card revenue that want quick access to working capital without pledging property, for instance for a refit, a marketing push or bridging a slow month. The important distinction is that this is not a property-secured loan, and the total cost is usually expressed as a fixed fee rather than an interest rate, which can look different from an APR, so compare the total repayable and check current terms.

Liberis, best for flexible, embedded revenue finance

Liberis also offers revenue-based finance repaid as a slice of daily card sales, and it partners with many payment providers, so funding can be offered through the systems a business already uses. Like YouLend, the flexible repayment suits the unpredictable rhythm of hospitality income.

It suits smaller and mid-sized operators who value simplicity and a repayment that flexes with trade. The same watch-outs apply as with any revenue advance: it is not secured on property, the cost is a fixed fee on the amount advanced, and the effective cost can be high if you repay quickly, so always compare the total repayable and confirm the current fee.

Aldermore, best for asset finance on equipment and fit-outs

Aldermore is a specialist bank offering asset finance and commercial mortgages. Its asset finance can help fund kitchen equipment, refrigeration, furniture and vehicles, with the equipment itself acting as the security, which keeps property free for other uses.

It suits operators making significant equipment investments who want to spread the cost over the asset’s useful life. The watch-out is that asset finance is tied to specific items, so it is less flexible than a general term loan, and terms depend on the asset type and your trading history, so confirm current rates and any deposit requirements.

Comparison table

Rates and fees are not shown because they vary by borrower profile, security and term, and they change over time. Always confirm current figures directly with the lender before you commit.

Worked scenario: bridging versus revenue finance

Imagine a restaurant owner who owns the freehold and wants to complete a £120,000 kitchen and dining refurbishment before the summer trade. They are weighing a bridging loan from a specialist property lender against a revenue-based advance tied to card takings.

The bridging route uses the property as security and can release a larger sum, with a plan to refinance onto a longer-term commercial mortgage once the refit lifts trade. It could be cheaper over the medium term if the exit is solid, but it puts the premises at risk and depends on that refinance completing. The revenue-based route needs no property security and repays flexibly from card sales, which protects cash flow in quiet weeks, but the fixed fee can make it more expensive per pound borrowed, and it may not stretch to the full amount.

Neither is automatically right. The decision turns on how much they need, how confident they are in the refinance exit, and how much they value keeping the property unencumbered. This is exactly the kind of trade-off a broker can help you map out against current terms.

How to choose for your situation

Choosing hospitality finance comes down to matching the structure to your assets, your cash flow and your reason for borrowing. Ask yourself the questions below before you compare offers.

• What can you actually secure? Freehold property opens up mortgages and bridging, equipment points to asset finance, and steady card takings suit revenue-based finance.
• What is the money for? A long-term purchase suits a mortgage, a short opportunity suits bridging, and short-term working capital may suit a revenue advance.
• How predictable is your income? If takings swing seasonally, a facility that flexes with sales may protect you better than a fixed monthly repayment.
• What is your exit or repayment plan? Short-term borrowing needs a credible way out, whether that is refinancing, a sale or improved trade.
• What is the total cost, not just the headline? Compare the total repayable including arrangement, valuation and exit fees, and confirm current figures with each lender.

What to check before you commit

Before signing any facility, read the terms in full and make sure you understand what happens if trade dips. The clearest sign of a good fit is that you can afford the repayments in a slow month, not just a busy one.

• What is secured, and what is at risk? Confirm exactly which asset backs the loan and what recovery action the lender can take.
• The total cost. Ask for the total amount repayable and every fee, including arrangement, valuation, legal and early repayment or exit charges.
• Early repayment terms. Check whether you can repay early without penalty, which matters if you plan to refinance.
• Personal guarantees. Many business loans ask directors for a personal guarantee, so understand what you are agreeing to.
• Flexibility for seasonality. Ask whether repayment holidays or flexible terms are available for quiet periods.
• Speed and process. Property-backed lending needs valuations and legal work, so confirm realistic timelines against your deadline.

Let Greenwood Capital compare the market for you

Every hospitality business is different, and the right structure depends on your property, your equipment, your card takings and your plans. As a whole-of-market broker in Manchester, Greenwood Capital can compare lenders across the market and match your situation to the options that fit, saving you the legwork of approaching each one.

This page is general information, not financial advice. If you would like an impartial look at what is available for your circumstances, get in touch and we will help you weigh the choices and confirm current terms with lenders.