Business loans for pubs

• Cash flow challenge: Pub owners often need significant upfront funding for property, refurbishment, stock, and staffing before revenue becomes consistent.

• Perfect for: New and existing pub owners looking to purchase a pub, refurbish premises, invest in equipment, or strengthen working capital.

Running a pub is capital intensive. Whether you are buying your first premises, taking over an existing business, or investing in refurbishment and expansion, funding needs can arise well before income stabilises. Business loans for pubs are designed to provide structured finance that supports both acquisition and day-to-day operations.

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What can business loans for pubs be used for?

Pub finance can support a wide range of needs, including:

• Purchasing a pub freehold or leasehold
• Refurbishment and fit-out
• Cellar upgrades and bar equipment
• Outdoor seating or garden improvements
• Stock purchases and supplier payments
• Hiring and training staff
• Managing seasonal cash flow fluctuations

Clearly defining how funds will be used helps lenders assess affordability and structure the right facility.

Buying a pub: loan vs commercial mortgage

When purchasing a pub, funding may take one of two primary forms.

Commercial mortgage

A commercial mortgage is typically used when buying the property itself. It is secured against the premises and repaid over a longer term. This option may suit operators purchasing a freehold.

Business loan

A business loan may be used alongside a mortgage or independently to cover:

• Deposits

• Refurbishment costs
• Initial stock and staffing
• Working capital during transition

The right structure depends on the size of the purchase and the operator’s trading history.

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Types of finance available for pubs

Different funding options may be appropriate depending on the stage and needs of the business.

Unsecured business loans

Unsecured loans do not require property or assets as collateral. They are often suitable for refurbishment, equipment upgrades, or short-term investment needs.

Secured business loans

Secured loans are backed by assets such as property. They may allow access to larger loan amounts or longer repayment terms.

Asset finance

Asset finance can be used to fund specific equipment, such as kitchen installations, cellar systems, or furniture, spreading the cost over time.

Working capital finance

Working capital loans help manage ongoing operational costs, particularly during quieter trading periods or seasonal shifts.

How much can you borrow?

The amount available will depend on several factors, including:

• Trading history and financial performance

• Projected revenue

• Existing debt commitments
• Security available (if applicable)
• The purpose of the loan

For new operators, lenders may place greater emphasis on business plans, experience in hospitality, and projected cash flow.

Considerations before applying

Before applying for pub finance, operators typically consider:

• Whether repayments fit comfortably within projected cash flow
• The total cost of borrowing over the full term
• The impact of seasonal revenue changes
• Contingency planning for unexpected expenses

Taking a structured approach to planning can reduce financial pressure during the early months of operation.

How Novuna Business Cash Flow can help

At Novuna Business Cash Flow, we support hospitality businesses across the UK with structured funding solutions tailored to their stage of growth. Speak to our experts today and we will help you find a great fit for your situation.