Industry finance
Business finance for cafes, restaurants and hospitality venues
Cafes, restaurants, bars and caterers pay for the gear and the stock before the money comes back through the till. A business loan for a cafe, or any hospitality venue, is mostly about that timing: the fit-out, the kitchen, the stock before a peak, and the quiet months in between.
An enquiry is a conversation, not an application. We won't submit anything to a lender without your say-so.
Last reviewed:
What is hospitality business finance?
Hospitality business finance is business-purpose lending arranged for cafes, restaurants, bars, pubs, clubs and caterers to manage cash flow, buy equipment or complete a fit-out. Lenders assess it on the venue's trading, and a full year of takings shows the seasonal shape rather than the last few weeks. The structure usually follows the purpose.
Hospitality is a cash-heavy, seasonal, equipment-hungry trade, which shapes what funding fits. A quiet winter, a slow month after a fit-out, a peak that needs stock bought before it sells: there is hospitality finance built for each shape. A cafe business loan for an espresso machine looks nothing like a caterer's line of credit, and a seasonal till is best shown to a lender as a full year of takings rather than a few good weeks.
We are a broker, not a lender. We do not fund your cafe. We arrange business-purpose finance: we put your venue to the lenders on our panel whose appetite fits hospitality and bring back the options side by side. We are typically paid a commission by the lender when your finance settles. The amount, rate and decision are the lender's, and no broker can promise how long a lender will take.
Hospitality is also the trade we see most at home on the coast. For the seasonal shape of the region see business finance broker Byron Bay and business loans and finance broker Ballina.
Who typically qualifies for cafe and hospitality finance?
Lenders set their own criteria, and they differ, but across the panel they typically look for:
-
GST-registered ABN and trading record
A newer venue is usually placed with a narrower group of lenders, which sets how wide the comparison can be.
-
Hospitality experience
Yours or your manager's, especially for a purchase or a new site; lenders typically ask for evidence of it alongside the plan.
-
A full year of monthly takings
Some lenders ask for less, but a full year shows the seasonal shape against the peak that funds it.
-
A lease that outlasts the finance
The lease needs to run beyond the finance term, or the fit-out and fixed equipment have nothing to stand on.
-
A supplier quote for recognised equipment
Lenders typically want a quote from a recognised supplier for the gear being financed.
-
Credit history, and your own stake
For the owner and directors; for a purchase, lenders typically expect the buyer's own contribution alongside the finance.
A venue thin on one item is often still placeable with another lender or structure; finding which is the broker's job.
Common funding needs
Where the finance usually goes
-
Fit-outs and refurbishments
A new site, a refresh or the lease next door. Recognised equipment can be financed on the gear; design fees, approvals and works fixed to the building often sit in an unsecured or term loan instead, commonly without pledging your home.
-
Commercial kitchen equipment
Espresso machines and grinders, fridges and cool rooms, combi ovens, ranges and fryers, dishwashers and glasswashers, POS hardware, even a coffee van. Financed so the cost is spread over the years the gear earns rather than paid in one hit.
-
Stock before the peak
Buying in for summer, the festive weeks or a run of functions, weeks before the takings land. Stock is not financed as equipment, so this is working capital: a lump sum or a limit sized to the season.
-
Bridging the quiet months
A revolving limit you draw on in the slow season and repay when trade lifts, paying interest on the drawn balance plus a line or service fee. Many venues also time a refit for the quiet months, when a closed kitchen costs least.
Which finance fits
Options worth comparing
-
Unsecured business loan
A lump sum assessed on your trading, with no property pledged. A common fit for a fit-out, the soft costs around it, or a stock buy before the season.
Learn more -
Equipment finance
Kitchen, coffee and bar gear financed over its working life, with the gear itself as security. A common route when the quote is for recognised equipment.
Learn more -
Business line of credit
A limit you draw on through the quiet months and repay when trade returns, with interest on the drawn balance plus a line or service fee for holding the limit.
Learn more -
Merchant cash advance
For card-heavy venues, repaid as a share of daily takings, so a quiet week means a smaller repayment. Generally dearer, so worth pricing a loan first.
Learn more
Typical structures for a venue
Fit-out finance
A fit-out quote mixes two kinds of cost. Lenders typically treat the espresso machine, cool room, ovens and dishwasher as equipment, financed on the gear itself. Design fees, council approvals, separately billed installation labour and works fixed to the building often sit outside equipment finance, in an unsecured business loan or a term loan assessed on your trading; some lenders will fund them with the gear, so ask. Ask the shopfitter and kitchen supplier for a split quote, financeable items separated from the rest, so each part goes to the right lender.
Commercial kitchen and coffee equipment: chattel mortgage, lease or rental
Commercial kitchen equipment finance covers coffee machines and grinders, refrigeration, ovens, fryers, warewashing, POS hardware, a coffee van or a food truck, and the gear itself is usually the security. A chattel mortgage is a common starting structure, with the venue owning the gear from settlement; a lease suits gear you want to hand back or upgrade. Rental programs from equipment funders, which let you swap or upgrade and in some cases buy, are an alternative a broker prices against finance. How each is treated for tax is a question for your accountant.
Seasonal working capital
A business line of credit is drawn in the quiet months and repaid in the peak, with interest on the drawn balance plus a line or service fee. A merchant cash advance suits a card-heavy venue but is generally dearer, so worth pricing a loan first; the merchant cash advance vs business loan comparison sets the two side by side. Give a lender a full year of takings, not just the last quarter, so a winter dip is read against the summer that paid for it.
Buying a cafe or restaurant
Lenders typically expect the buyer's own contribution and relevant hospitality experience, and the lease needs to run beyond the finance term, or the fit-out and fixed equipment have nothing to stand on. Some lenders will fund a smaller purchase unsecured; property security or a guarantor widens the options. Have your accountant and solicitor read the sale contract and lease before you sign, and use the business loan repayment calculator to see what a sum costs each month.
What lenders ask for from a cafe or restaurant
The list varies by lender and product; for most hospitality files it includes:
- Photo identification for the owner and each director
- ABN and GST registration, business bank statements and activity statements
- Financial statements, or for a newer venue a plan with cash-flow forecasts
- Monthly takings or POS reports across the year, so the seasonal shape is visible
- The lease, or heads of agreement for a new site
- Itemised equipment and fit-out quotes, financeable items separated
- For a purchase, the vendor's financial statements and the heads of agreement
- Your ATO account position, and the liquor licence if the venue holds one
Customer stories
In their own words
-
4 out of 5
A merchant cash advance worked well for me because repayments flex with my daily card takings. Quiet week, I pay less; busy week, I pay more. It suited the ups and downs of a restaurant far better than a fixed loan. Would have given five stars if the initial paperwork had been slightly quicker, but no real complaints.
Ahmed R. Restaurant owner, Perth WA -
5 out of 5
A commercial oven isn't cheap, and financing it instead of buying outright kept my cash free for ingredients and staff. The equipment loan was approved fast and the repayments are very manageable against the extra bread I can now bake. Lovely people to deal with.
Chloe T. Bakery owner, Hobart TAS -
5 out of 5
Catering means paying for stock and casuals before the client pays me. A line of credit covers that gap for every event and I clear it once I'm paid. It's taken the fear out of taking on bigger functions. The flexibility is exactly what my business runs on.
Caroline W. Catering business owner, Perth WA
Testimonials reflect individual customers' experiences. Outcomes vary and depend on the lender and your circumstances.
121 Brokers Pty Ltd (ABN 37 674 323 712) is a finance broker, not a lender. We arrange finance through third-party lenders. Approval, interest rates, fees, timing and the funds themselves are set and provided by the lender, not by 121 Brokers.
FAQs
Hospitality finance questions, answered straight
Can I get finance for a cafe fit-out without using my house?
Often, yes. An unsecured business loan is assessed on your trading rather than on property, so a fit-out can commonly be funded without pledging your home. Directors usually still guarantee it. We are a broker, not a lender: the amount, the rate and the decision are the lender's, and we compare what the panel offers your business.
What finance suits seasonal hospitality cash flow?
A business line of credit often fits a seasonal pattern better than a lump-sum loan: you draw in the quiet months, repay when trade lifts, and pay interest on the drawn balance plus a line or service fee. For a one-off need, a term loan can be simpler. Which costs less depends on your numbers, and we compare both.
Can I get a business loan to buy a cafe or restaurant?
Yes, though lenders typically expect the buyer to put in their own money and to show hospitality experience, and the lease needs to run beyond the finance term. Some lenders will fund a smaller purchase unsecured; property security or a guarantor widens the options. We are a broker, not a lender, and we compare which lenders will look at the purchase.
What hospitality equipment can be financed, and what cannot?
Most hard assets can: espresso machines, grinders, refrigeration and cool rooms, ovens, fryers, dishwashers, POS hardware, even a coffee van. Stock is not financed as equipment; software subscriptions, training, marketing and separately billed installation labour often sit outside equipment finance too, in a loan or line of credit instead. Ask suppliers for itemised quotes so each line goes to the right facility.
Can I finance a full cafe or restaurant fit-out in one facility?
Sometimes, but most fit-outs end up as two parts: equipment finance for the kitchen and coffee gear, secured on the gear, and an unsecured or term loan for design, approvals, building works and the other soft costs many lenders do not treat as equipment. One facility is simpler; two can cost less overall. We compare both ways.
Find out what your business actually supports.
One conversation tells you what the panel would do with your file, what it would cost, and which structure fits your cash flow. You decide whether any of it is worth taking.
An enquiry is a conversation, not an application. We won't submit anything to a lender without your say-so.