Business loans for coffee shops

• Cash flow challenge: Coffee shop owners often need significant upfront investment in premises, equipment, and stock before daily sales become consistent and predictable.

• Perfect for: New and existing coffee shop owners looking to open a café, refurbish premises, upgrade equipment, expand locations, or strengthen working capital.
  

Opening or growing a coffee shop is an exciting venture, but it requires careful financial planning. From securing a lease and purchasing espresso machines to hiring staff and managing stock, costs can build quickly. Access to the right funding structure can provide reassurance and allow you to focus on delivering a great customer experience.

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What can coffee shop business loans be used for?

Business loan funding can support a wide range of café-related expenses, including:

• Lease deposits and initial rent payments
• Shop fit-out and interior refurbishment
• Espresso machines, grinders, refrigeration and kitchen equipment
• Furniture, signage and branding
• Licences, insurance and compliance costs
• Initial stock purchases
• Hiring and training staff

Clearly identifying how funding will be used can help ensure the finance solution aligns with your business goals.

Funding options available for coffee shops

The most suitable funding option depends on whether you are starting out or operating an established café:

Start Up Loans

For new café owners, government-backed Start Up Loans can provide unsecured personal lending used for business purposes. These loans typically offer fixed repayment terms and access to mentoring, which can be particularly valuable in the early stages of launching a coffee shop.

Unsecured business loans

Unsecured business loans may suit established coffee shops that need funding for refurbishment, expansion, or working capital. They do not require assets as security and can provide flexible access to capital.

Merchant cash advance

Because coffee shops often process high volumes of card transactions, a merchant cash advance can be an option. Repayments are typically linked to a percentage of daily card sales, which can help align repayments with income levels.

Asset finance

Asset finance allows you to spread the cost of equipment, such as commercial coffee machines or kitchen appliances, over time. This can help preserve working capital while investing in quality equipment.

Working capital loans

Working capital loans can help manage seasonal fluctuations, supplier payments, and short-term operational costs.

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How much does it cost to open a coffee shop?

Opening a coffee shop in the UK typically costs between £20,000 and £100,000+, depending on location, size, and fit-out requirements. Smaller takeaway-style cafés may start around £20,000–£40,000, while high street or premium concepts often require £50,000–£150,000 or more, including equipment and working capital.

Startup costs can vary significantly depending on location and scale, but common expenses include:

• Lease deposit and legal fees
• Fit-out and renovation
• Professional coffee equipment
• Initial stock and supplier agreements
• Marketing and branding
  

Things to consider before applying

Before committing to finance, it’s helpful to consider:

• Whether projected revenue comfortably covers repayments

• The total cost of borrowing over the full term

• Seasonal footfall variations
• Future growth or expansion plans

Taking a measured approach helps ensure borrowing supports long-term sustainability rather than short-term pressure.

How Novuna Business Cash Flow can help

At Novuna Business Cash Flow, we support hospitality businesses across the UK with funding solutions tailored to their stage of growth.

Get in touch with us today and we can help you find you a great deal for you situation.