FINANCE OPTIONS

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Q: What borrowing ranges are typical for a £1m restaurant term loan

Borrowing often starts around £50,000 and may extend up to around £2,000,000 depending on eligibility and risk. For unsecured term loans, typical amounts are about £50,000 to £500,000, with higher requests up to around £1m possible. Secured, asset-backed options commonly range about £150,000 to £2,000,000, with £1m most realistic when security and cashflow are strong.

Q: How long does the decision take for restaurant term lending

Initial decision times are commonly 1 to 6 weeks. Unsecured cases are often 1 to 4 weeks when the submission is straightforward. Secured lending can take longer, often 2 to 6 weeks due to valuation and legal/security documentation steps. Overall speed also depends on how quickly documents and any requested information are provided.

Q: What interest rate range should I expect

Representative interest context is often around 8% to 18% p.a. for unsecured term loans, about 6% to 12% p.a. for secured, asset-backed term loans, and roughly 7% to 15% p.a. where personal guarantee or director support is involved. The final rate depends on risk factors, evidence of trading, security or guarantees, and whether the rate is fixed or effectively fixed.

Q: Do UK consumer credit regulations apply to these loans

UK consumer credit regulations generally do not apply to limited company loans provided solely for business purposes. However, lenders still comply with financial promotion and conduct expectations relevant to their permissions. If security is taken and legal enforcement rights apply, lenders follow their documentary and affordability assessment practices, and documentation typically includes financials, bank statements, and identity checks for relevant individuals.

A £1m restaurant business loan is often structured as a term loan, where a lender advances a fixed amount upfront and you repay it in scheduled monthly instalments over an agreed term. Restaurant owners use this type of finance to fund premises improvements, kitchen and front-of-house equipment, refurbishment projects, and working-capital shortfalls between trading peaks. It can also help consolidate higher-cost debt so your monthly outgoings are easier to plan. If you want a predictable repayment schedule that matches your refurbishment or equipment cycle, a term loan can be a practical option.

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^Benefits of a restaurant term loan

For many restaurant businesses, the value of a £1m-scale facility is the structure: upfront funding, fixed monthly repayments, and a repayment term that can fit the project lifespan. Typical pricing context is often around 8% to 18% p.a. for unsecured borrowing and about 6% to 12% p.a. for secured options, based on risk and evidence. Decision times are commonly 1 to 4 weeks for straightforward unsecured cases, or longer where valuation and legal steps are needed.

Upfront funding for key spend

Clear monthly instalments

Structured replacement for credit

SCALE YOUR BUSINESS TO NEW HEIGHTS

Types of £1m restaurant term loans

Unsecured term loan

Unsecured term loans typically suit established restaurants with a trading track record, a manageable liability profile, and affordability evidence for monthly repayments.

Unsecured term loan

An unsecured term loan can range from about £50,000 to £500,000, with higher requests up to around £1m possible depending on cash generation and director support. Lending terms are commonly 24 to 60 months. Representative interest pricing is often in the region of 8% to 18% p.a., based on risk. Decisions are frequently 1 to 4 weeks when financial evidence is clear. Common uses include kitchen extraction, refrigeration, POS upgrades, refurbishment, seasonal working-capital gaps, and consolidation of higher-cost credit.

Secured term loan (asset-backed)

Secured term loans use business assets or premises security, which can help support larger borrowing and longer repayment profiles.

Secured term loan (asset-backed)

For a secured, asset-backed term loan, lenders usually look for security over property and/or business assets such as machinery and equipment, plus stronger affordability evidence. Typical amounts can be around £150,000 to £2,000,000, with £1m most realistic where security and cash flow are well evidenced. Terms often run 36 to 84 months, depending on the asset’s depreciation profile and repayment capacity. Representative interest is frequently around 6% to 12% p.a. Decision time is often 2 to 6 weeks because valuation and legal/security documentation steps are part of the process. This can fit refurbishment and shopfitting funded against asset value.

Term loan with personal guarantee

Where lenders seek additional reassurance, a personal guarantee or director support may help you access the right size and structure.

Term loan with personal guarantee

A term loan with personal guarantee or director support focuses on trading performance and affordability, but it can open up options for higher amounts where decision-makers provide extra backing. Typical amounts are often from about £100,000 to £1.5m+, with terms commonly 24 to 72 months if affordability allows. Representative interest is often in the region of 7% to 15% p.a., influenced by risk and whether security is also offered. Decisions are commonly 1 to 5 weeks, sometimes longer for complex cases. Restaurant uses can include leasehold improvements, major kitchen refits, funding a ramp-up after concept change, and converting expensive short-term borrowing into structured repayments.

Typical Funding Journeys on Funding Agent

Submit your funding request

Our platform enriches your application using business data

Your request is matched to suitable lenders

Receive offers and proceed with the best option

How to get a £1m term loan via Funding Agent

Tell us your borrowing plan

Share the amount you want, your trading history, and what the funds will pay for, such as refurbishment, kitchen equipment, or working capital to cover a seasonal trough.

We shortlist suitable lenders

We review your profile for the most likely fit, for example whether a secured or unsecured structure makes sense, and what term length may align with affordability signals.

Apply and complete checks

We guide you through submitting required financial documents such as accounts and recent bank statements, supporting lender underwriting, and moving toward offer acceptance and drawdown.