Restaurant Guide

8 Restaurant Business Funding Options UK 2025

Complete guide to funding your restaurant: MCAs (24-48hrs), equipment finance, grants, loans. £5k-£250k available. Best option for YOUR situation explained for your growth plans.

Best Restaurant Funding Options Ranked

365 Finance MCA

Best for Fast Working Capital

#1 CHOICE

Amount:

£5k-£250k

Cost:

1.25-1.40x (25-40%)

Speed:

Same-day approval, funds in 1-2 days

Best for:

Emergency equipment, refurbishment, seasonal cash flow

Why #1:

Hospitality specialists, understand restaurant cash flow

iwoca

Best Rates

Amount:

£1k-£500k

Cost:

1.08-1.25x (best rates)

Speed:

24 hours

Best for:

Cost-conscious restaurants, steady sales

Equipment Finance

For Kitchen Equipment

Amount:

£2k-£100k per item

Cost:

5-12% APR

Best for:

Ovens, fridges, POS systems (specific purchases)

Start Up Loans

Cheapest for New Restaurants

Amount:

£500-£25k

Cost:

6% APR (cheapest)

Speed:

6-12 weeks (very slow)

Best for:

New restaurants under 12 months, can wait

Funding Circle

Cheapest Long-Term

Amount:

£10k-£500k

Cost:

7-15% APR (slower, cheaper)

Speed:

5-7 days

Best for:

Planned expansion, refurbishment

Business Overdraft

Short-Term Cash Flow

Amount:

£1k-£50k

Best for:

Short-term gaps, working capital

Invoice Finance

For B2B Restaurants

Amount:

£10k-£5M

Best for:

Corporate catering/B2B restaurants

Grants

Free Money

Amount:

Varies

Best for:

Rare but worth checking

Which Option for Which Scenario

Emergency Kitchen Equipment (Need Today)

Choose:

365 Finance MCA (same-day approval, £10k-£50k)

Planned Refurbishment (6 Months Away)

Choose:

Funding Circle loan (7-10% APR, save 60% vs MCA)

Opening New Restaurant (12-Month Project)

Choose:

Start Up Loan (6% APR, £25k max) + equipment finance for kitchen

Seasonal Cash Flow (Summer Peak Needs Stock)

Choose:

365 Finance or iwoca MCA (flexible repayment, repay in summer)

Restaurant Funding Costs Compared (£30k)

Option	£30k Cost	Speed	Best Use
365 Finance MCA	£7,500 (25%)	Same day	Emergency
iwoca MCA	£4,500 (15%)	24 hours	Best value fast
Funding Circle	£2,700 (9%)	5-7 days	Cheapest
Equipment Finance	£1,800 (6%)	3-5 days	Specific equipment

Conclusion

Best restaurant funding depends on urgency and purpose:

• Emergency equipment → 365 Finance MCA (same day)

• Best value fast option → iwoca MCA (24hrs, better rates)

• Planned expansion → Funding Circle loan (cheapest)

• New restaurant startup → Start Up Loan + equipment finance

Don't use one-size-fits-all. Match funding type to your specific need and timeline for your restaurant's growth plans.

Get Restaurant Funding Quotes

Compare all 8 options. MCA, loans, equipment finance.

Choose best for YOUR restaurant growth plans

Get Restaurant Quotes

Frequently Asked Questions

What is the best restaurant funding option?

Best depends on urgency and purpose. For emergency equipment, 365 Finance MCA (same day). For best value fast option, iwoca MCA (24hrs, better rates). For planned expansion, Funding Circle loan (cheapest). For new startups, Start Up Loan.

How much funding can a restaurant get?

Restaurants can access £5k-£500k depending on monthly card sales. MCA: typically 1-2x monthly card sales. Example: £40k monthly sales = £40k-£80k funding available.

Can restaurants get funding with bad credit?

Yes! MCAs like 365 Finance and iwoca approve based on card sales, not credit score. Bad credit may increase factor rate slightly but won't block approval. Perfect for restaurants with seasonal cash flow challenges.