Why restaurants find funding harder
Margins are thin and failure rates are high, so lenders want proof that the concept works. A trading history at an existing site is the strongest evidence you can bring.
Options that work
Kitchen equipment suits asset finance. Card takings support merchant cash advances or revenue based funding. A new site fit out is usually funded with a term loan, often backed by a government guarantee scheme.
Making the case
Bring covers per week, average spend, food and labour cost percentages, and a realistic ramp up forecast for any new site. Lenders trust operators who know these numbers without looking them up.
Frequently asked questions
Can a first restaurant get funding?
Yes, but expect a larger personal contribution and probably a personal guarantee.
Is a merchant cash advance a good idea?
It can cover short gaps, but compare the effective annual cost carefully.
Last reviewed: 2026-10-15