Finance for a pub, bar or hotel should match the job you need it to do. A merchant cash advance may suit an established business with regular card takings, but it is only one option. A loan, revolving facility or asset finance may fit better depending on the purpose, timescale and how the repayments affect quieter trading periods.
Start with the hospitality need
- Seasonal working capital: covering wages, suppliers or overheads before a busier period produces cash.
- Refurbishment: funding a defined project with a realistic budget, closure period and expected return.
- Equipment: replacing or adding kitchen, cellar, laundry, furniture or technology assets.
- Stock and suppliers: buying drink, linen or other inventory without leaving too little cash for normal operations.
- Growth: adding rooms, outside space, events capacity or another site under a costed plan.
A clearly costed purchase is different from a shortage that returns every month. If the immediate problem is timing, use the cash-flow gap guide as well.
Compare common finance routes
| Route | May suit | Payment pattern | Main hospitality test |
|---|---|---|---|
| Merchant cash advance | An established operation with eligible card sales | An agreed percentage of eligible card takings | Margin and cash left after collections during quieter weeks |
| Term or working-capital loan | A defined project or amount with an evidenced repayment plan | Scheduled payments under the agreement | Whether fixed payments fit the lowest realistic trading month |
| Overdraft or revolving facility | Short needs that rise and fall within an agreed limit | Charges linked to use and facility terms | Review dates, renewal and whether the balance genuinely reduces |
| Asset finance | Qualifying equipment, vehicles or other business assets | Payments linked to the asset agreement | Asset life, maintenance, ownership, total cost and security |
These are finance categories, not confirmation that Mills Commercial Finance offers every route or that one will be available to your business.
Test whether card-sales funding fits
- How much of your takings is paid through eligible card transactions?
- How different are a strong week, a normal week and your weakest realistic week?
- How are refunds, deposits, event cancellations and chargebacks treated?
- What do wages, VAT, suppliers and rent leave after the proposed collection?
- Does another provider already collect from the same card receipts?
- Would the funded work increase sales or simply cover a recurring shortage?
A seasonal pub example
Plan around seasonality before borrowing
Build a monthly forecast using realistic trading patterns, not an annual average divided by twelve. Include payroll, stock, utilities, tax, planned closures, maintenance and the timing of deposits or event income. Then test the finance against a weaker-than-expected month.
If the money is mainly for stock, the stock and inventory guide explains the supplier-to-customer cash cycle in more detail.
What should you prepare?
You may be asked for card-processing and bank statements, accounts or management figures, trading history, existing finance and evidence of what the money will fund. For a project, prepare a budget, timeline and explanation of how it should support repayment. Requirements vary, and providing information does not mean finance will be approved.
Frequently asked questions
What finance is available for a pub?
Potential routes include a merchant cash advance, business or working-capital loan, revolving facility and asset finance. Availability and suitability depend on the purpose, trading evidence, affordability and provider terms.
Does a pub need card sales for every type of finance?
No. Card-sales evidence is central to a merchant cash advance, but loans and other facilities use different assessment and repayment structures.
Can hospitality finance cover a seasonal gap?
Potentially, but first quantify the maximum gap and show how it will clear. If the shortage repeats during normal trading, another payment may make the problem worse.