Bar and Pub Finance

What is Pub Finance?

“Pub finance” is an umbrella term covering the range of funding products that hospitality operators use to buy, improve and run a public house, bar or similar licensed premises. It includes long-term mortgages for property acquisition, asset finance and equipment leasing for kitchen and bar fixtures, working capital facilities to smooth day-to-day operations, short-term cashflow lending for seasonal demand, and commercial loans for refurbishment or outdoor works.

At Gable Asset Finance we understand that pubs are a unique business model: they combine property, licensed trading, food and beverage margins, seasonal demand, and often an emotional link to community. That means finance needs to be flexible, pragmatic and aligned with trading cycles — not a one-size-fits-all bank product. Our role is to design funding packages that allow you to buy the right property, invest in the customer experience, and protect cashflow as your business grows.

Who we help

We work with a wide range of operators including:

• First-time buyers and publicans taking over a local community pub
• Experienced operators expanding into multiple sites
• Gastro-pubs and restaurants looking to upgrade kitchens and dining areas
• Bars, craft beer venues and cocktail lounges
• Hotel bars and inns looking to improve facilities
• Leaseholders and freeholders considering sale & leaseback or refinance

Whether you’re buying a leasehold or freehold, refurbishing an historic building or modernising a contemporary site, our experience with hospitality finance helps you make commercially realistic choices.

Finance options for buying a pub

When buying a pub you will typically consider several types of finance depending on your plans, ownership structure and how much capital you have available. Common options include:

Pub mortgages (Commercial Mortgages)

Commercial mortgages are the most common route for purchasing a freehold pub. Lenders will assess the value of the property, the viability of the trading business (accounts, trading history, projected turnover), and the experience of the buyer. Terms, loan-to-value (LTV) and repayment periods vary, but typical mortgages for pubs are structured over medium to long terms (5–25 years) with a deposit required (often 20–40% depending on circumstances).

Owner-occupier lending

Many lenders offer specific owner-occupier property finance that recognises the combined nature of the business — property + trade. These products may take trading profits into account when assessing affordability and can sometimes offer more favourable terms than pure buy-to-let or investment lending.

Leasehold purchase & assignment finance

If you are taking on a tenancy or assigning a lease, funding arrangements differ. Lenders will review the lease terms, rent reviews, break clauses and covenant strength. Some lenders provide specialised finance for lease assignments, often with shorter terms aligned to the lease duration or rent review schedule.

Vendor finance & bridging loans

Vendor finance, where the seller provides a loan for part of the purchase price, or short-term bridging finance can be useful when timing is tight. Bridging loans are short-term, higher-cost facilities used to secure a purchase quickly — typically repaid or replaced by a longer-term mortgage within months.

Sale & leaseback

For established operators who own premises outright, sale and leaseback lets you unlock capital tied up in property by selling the freehold to an investor and leasing it back. This releases cash for refurbishment, expansion or to reduce higher-cost debt while allowing continued use of the premises.

Financing the set up (fit-out, licences & initial stock)

Buying a pub is rarely just a property transaction — you’ll usually need to invest in refurbishment, obtain or transfer licences, buy initial stock, and recruit staff. Our finance packages can include or run alongside:

• Refurbishment loans — for full or partial fit-outs including bar counters, seating, decoration, and toilet refurbishments.
• Equipment finance — leasing or hire purchase for kitchen equipment, refrigeration, bar dispense systems and point-of-sale (POS) systems.
• Working capital — initial cash to buy stock and cover early salaries and supplier payments.
• Licence & legal costs — funding for transfer of premises licence, solicitor costs and planning or building regulation works.

We can combine these elements for a single cohesive package or arrange separate facilities depending on what suits the business plan and tax/accounting preferences.

Finance for working capital and ongoing operating costs

Operating a pub requires steady access to cash. Even profitable businesses can suffer cashflow pressure due to supplier terms, staff payroll, VAT liabilities, or seasonal dips. Working capital finance options include:

Overdrafts and business current accounts

Short-term overdrafts attached to a business current account provide immediate access to funds for day-to-day items. They are flexible but typically have variable rates and may require a strong banking relationship.

Business loans

Term loans can fund ongoing investments, refinance existing debt or consolidate multiple credit facilities. These offer fixed monthly payments and predictable budgeting.

Revolving credit facilities

A revolving credit facility (RCF) provides flexibility similar to an overdraft but is structured as a lending facility with a pre-agreed limit. You draw what you need, repay, and re-draw as required within the term.

Merchant cash advance (MCA)

MCAs provide quick access to funds repaid through a percentage of daily card takings. They can be useful for short-term needs but are often expensive and should be used with caution.

Invoice financing

If you supply food or beverage to other businesses (for example, supplying sandwiches to local shops), invoice discounting or factoring can accelerate cash collection from outstanding invoices.

Financing to manage seasonal cash flow

Pubs often face pronounced seasonality — think summer beer gardens, Christmas party bookings, or quieter winter months depending on location and offering. Managing seasonality is critical to survival and growth:

• Seasonal overdrafts: Arranged to increase capacity during peak months and reduced during quieter periods.
• Seasonal repayment profiles: We can structure loan repayments to be lower in off-peak months and higher in peak months, aligning costs with revenue.
• Deferred start/balloon payments: Short initial deferral or a balloon final payment can ease early-year pressure after a heavy investment period.
• Revenue-based repayments: Facilities that flex with takings can be arranged in specific cases, but these require careful structuring.

Seasonal planning is one of the biggest differentiators between a healthy pub business and one that struggles. We work with operators to map trading cycles and build finance plans that match those cycles.

Cash flow finance options for pubs — the practical choices

A good funding partner will propose the combination of products that keeps the business healthy. Practical solutions include:

• Short-term working capital loan — for predictable cash needs (payroll, suppliers)
• Revolving credit facility — for flexible ongoing borrowing
• Seasonal overdraft — with agreed limits for peak seasons
• Merchant cash advance (if appropriate) — very short-term and quick access to cash
• Invoice discounting — where applicable to accelerate receivables
• Supplier finance — negotiated terms with key suppliers to stagger payments

We will explain the cost of each option and recommend the most sustainable approach for your cashflow profile.

Pub mortgages — what lenders look for

When assessing a mortgage for a pub purchase, lenders consider a mix of property and trading factors:

• Property value and condition: Surveyor reports and valuations to confirm the security value.
• Trading accounts and cashflow: Historic accounts, management accounts and cashflow forecasts to assess the ability to service the loan.
• Experience of the buyer: A proven operator or an experienced management team reduces perceived risk.
• Location and competition: Local market strength, footfall and competition affect projected turnover.
• Lease/licence provisions: Where applicable, the security of the premises licence and its transferability.
• Condition of fixtures and equipment: Lenders will consider the cost of replacing key items if necessary.

Securing a pub mortgage may require a personal guarantee or security over other assets depending on the lender and profile of the borrower.

How pub finance can be used — practical examples

Pub finance can be applied to almost every expenditure required to buy, launch, run and grow a bar or pub. Common uses include:

Buying inventory

Initial and ongoing stock — beer, spirits, wine, food ingredients and seasonal or event-specific inventory — can be funded by working capital facilities or short-term loans. Ensuring you have the right mix and sufficient levels of inventory is vital for service continuity, especially around peak trading events.

Hiring staff

Payroll is one of the largest ongoing costs. Finance can help cover the cost of recruitment, training and initial payroll until takings normalise — particularly important when opening a new venue or launching a new offering such as brunch or Sunday roasts.

Renovating your premises

Refurbishment loans and fit-out finance can cover everything from structural works and plumbing/electrical upgrades to new bars, seating, décor and lighting. Investing in the customer environment often increases dwell time and average spend.

Outdoor maintenance (garden landscaping)

Outdoor spaces, beer gardens and terraces are valuable revenue drivers in summer months. Funding can cover landscaping, decking, outdoor furniture and heating/lighting to extend usable months.

Buying a vehicle for the business

Deliveries, event catering or supplier collections may require a small van or pick-up. Asset finance or hire purchase can fund vehicles while spreading payments.

Paying for kitchen equipment

Ovens, grills, refrigeration, dishwashers and prep equipment are often expensive capital items. Equipment leasing and hire purchase allow you to use industry-grade kit without a large upfront capital layout, and maintenance packages can be included.

Marketing and advertising costs

Launch campaigns, local advertising, social media promotion, and PR can be funded via working capital or a marketing-specific loan. Many pubs find that an early investment in marketing drives rapid awareness and return on investment.

Benefits of using specialist pub finance

• Industry-aware underwriting: Lenders familiar with hospitality better understand seasonal volatility and trading cycles.
• Flexible structures: Tailored repayment profiles and seasonal options help match payments to cash inflows.
• Consolidation: We can bring multiple needs (property, fit-out, equipment, working capital) into a single coordinated package.
• Speed: Specialist brokers often secure faster decisions than generic high-street processes.
• Supplier coordination: We liaise with equipment vendors, builders and solicitors to make the funding process smoother.

Who is eligible and what we need

Eligibility varies by product and lender, but typical requirements include:

• Company or proprietor details (registered business information)
• Historic trading accounts (usually 1–3 years for established businesses)
• Management accounts and cashflow forecasts
• Supplier quotes and detailed fit-out proposals (if applicable)
• Evidence of the buyer’s industry experience (CVs or management bios)
• Property valuation and any survey reports

Start-ups and first-time buyers may still obtain finance with a robust business plan, realistic forecasts and a clear route to profitability. Some lenders will ask for a higher deposit or a personal guarantee for new ventures.

Application process — simple, pragmatic and transparent

Our process aims to be commercial and fast while ensuring you have the right structure:

1. Initial conversation: Tell us about the property, the business plan, what you want to achieve and any time constraints.
2. Indicative terms: We’ll provide likely lending structures, indicative rates and deposit expectations so you can make an informed choice.
3. Formal submission: We submit the application to appropriate lenders with supporting documentation (accounts, forecasts, supplier quotes, property information).
4. Credit decision & conditions: Lenders will provide a conditional offer which we discuss with you and your solicitor.
5. Legal completion & drawdown: Once legal documentation is complete, funds are released per the agreed schedule (to seller, suppliers or contractors).
6. Ongoing support: We remain available for restructuring, adding additional facilities or refinancing as your business evolves.

We handle lender negotiation, paperwork coordination and practical logistics so you can focus on getting the pub open and trading well.

Illustrative case studies

Tax and accounting considerations

Financial decisions around pub purchasing and funding have tax and accounting implications. While we can offer general guidance, always consult your accountant for specifics:

• Capital allowances: Certain fixtures and plant may qualify for capital allowances, accelerating tax relief on capital expenditure.
• VAT: VAT on property sales and on equipment purchases can be complex — for example, buying a going concern VAT exemption or opting to tax can affect costs. VAT-registered businesses can often reclaim VAT on purchases and on certain lease payments.
• Lease vs buy: The accounting treatment and tax impact differ between leasing and purchasing assets. Lease payments may be treated as operating expenses, while purchases create an asset and potential depreciation/capital allowances.
• Stamp Duty Land Tax (SDLT): Purchases attract SDLT (or equivalent in devolved nations). Ensure you allow for t

  Running a bar or pub a finance company can be a lottery. Not with Gable Asset Finance. We have leased millions worth of pounds of equipment over the last 10 years to bar and pub sector, ensuring that businesses grow and survive.

  If your are looking to buy pub, bar or restaurant equipment, our dedicated Leisure team can help guide you through the process, helping ensure you get the right price on the equipment you need for your bar or pub business.

  Finance to fit out and refurbish bar and pubs throughout the UK

  Whether it’s the complete installation of a chic contemporary urban bar, or the meticulous and sympathetic renovation of a traditional historic pub, Gable Asset Finance can organise funding for the entire project.

  With an accomplished background in funding pub and bar fit-outs we can ensure that both interior and exterior fitouts are properly and economically funded. We are able to fund any type of project, from minor refurbishments through to extensive structural remodelling,

  We can finance most bar and pub equipment including:

  • Ashtrays
  • Bar & Cocktail Tools
  • Bar Disposables
  • Bar Caddies
  • Bar Mats & Shelf Liners
  • Bar Signage
  • Bottle Bins
  • Bottle Openers & Catchers
  • Brackets
  • Cocktail Shakers
  • Garnish Dispensers
  • Ice & Wine Buckets
  • Spirit Measures
  • Measured Pourers
  • Pourers & Corks
  • Store & Pour Bottles
  • Speed Rails
  • Rotary Stands & Rails
  • Thimble Measures
  • Tableservice
  • Bread & Display Baskets
  • Cake Service Equipment
  • Candles, Tealights & Vases
  • Catering Trays
  • Cheese Service Equipment
  • Condiments, Ramekins and Dispensers
  • Menus
  • Menu Boards
  • Napkins & Tablecovers
  • Order Pads
  • Oven to Table
  • Plate Covers & Cloche
  • Serving Dishes
  • Tea & Coffee Service
  • Tableservice
  • Table Numbers & Stands
  • Tip Trays
  • Foodservice
  • Breakfast Buffet
  • Cast Iron
  • Chafing Dishes & Fuel
  • Crockery Displayware
  • Counter Display
  • Display Stands
  • Glass Displayware
  • Serving Utensils
  • Oven To Tableware
  • Plastic Displayware
  • Wood Display

  For more information about the buying Pubs, Bar and Restaurants equipment in the UK contact one of our dedicated team.