8 Restaurant Business Funding Options UK 2026
Complete guide to funding your restaurant: MCAs (24 to 48hrs), equipment finance, grants, loans. £5k to £250k available. Best option for YOUR situation explained.
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Best Restaurant Funding Options Ranked
1. 365 Finance MCA: Best for Fast Working Capital
- Amount: £5k-£250k
- Cost: 1.15-1.40x (15-40%)
- Speed: Same-day approval, funds in 1 to 2 days
- Best for: Emergency equipment, refurbishment, seasonal cash flow
- Why #1: Hospitality specialists, understand restaurant cash flow
2. iwoca: Best Rates
- Amount: £1k-£500k
- Cost: 1.08 to 1.25x (best rates)
- Speed: 24 hours
- Best for: Cost-conscious restaurants, steady sales
3. Equipment Finance: For Kitchen Equipment
- Amount: £2k to £100k per item
- Cost: 5 to 12% APR
- Best for: Ovens, fridges, POS systems (specific purchases)
4. Start Up Loans: Cheapest for New Restaurants
- Amount: £500-£25k
- Cost: 6% APR (cheapest)
- Speed: 6 to 12 weeks (very slow)
- Best for: New restaurants under 12 months, can wait
5 to 8. Other Options
- Funding Circle: £10,000 to £750,000, fixed rates from 6.9% a year plus a one-off completion fee when you take out the loan; APR Not published, and a personal guarantee is required
- Business overdraft: £1k to £50k for short-term gaps
- Invoice finance: If you do corporate catering/B2B
- Grants: Free money (rare but worth checking)
Which Option for Which Scenario
Emergency Kitchen Equipment (Need Today)
Choose: 365 Finance MCA (same-day approval, £10k to £50k)
Planned Refurbishment (6 Months Away)
Choose: Funding Circle loan (fixed rate from 6.9% a year plus a completion fee; APR Not published, so compare the total repayable on its offer with an MCA quote)
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
| 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 | APR Not published. Its own example: £6,900 fee + £9,252 interest = £16,152 on £100,000 over 24 months | Typically within 48 hours of accepting an offer | Planned spending |
| Equipment Finance | £1,800 (6%) | 3 to 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 (fixed rate, from 6.9% a year)
- New restaurant startup → Start Up Loan + equipment finance
Don't use one product for every need. Match funding type to your specific need and timeline.