8 Restaurant Business Funding Options UK 2025

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 1-2 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: 1.08-1.25x (best rates)
• Speed: 24 hours
• Best for: Cost-conscious restaurants, steady sales

3. Equipment Finance - For Kitchen Equipment

• Amount: £2k-£100k per item
• Cost: 5-12% 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: 6-12 weeks (very slow)
• Best for: New restaurants under 12 months, can wait

5-8. Other Options

• Funding Circle: £10k-£500k at 7-15% APR (slower, cheaper)
• Business overdraft: £1k-£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-£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

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.