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For restaurants seeking around £300k, a secured equipment or asset-backed term loan is typically assessed using affordability and the strength of security. Lenders usually look for reliable trading, often at least 1 to 2 years, and evidence that repayments can be met from turnover and recent bank statements. Security interest may be taken over the asset or other collateral, such as equipment or a charge over business assets. Market indicative rates can sit roughly around 6.0% to 14.0% per annum, and terms are commonly 24 to 60 months.

An unsecured term loan generally focuses on affordability rather than security. Restaurants are typically assessed on consistent turnover, historical trading performance, and whether monthly repayments can be supported after considering rent, wages, and supplier commitments, including seasonality. Director guarantees are sometimes required in practice, particularly for smaller or newer businesses. Amounts commonly range £25,000 to £250,000, with larger figures like £300k more likely when risk can be priced appropriately. Indicative market interest can be roughly 8.0% to 18.0% per annum, with terms often 12 to 48 months.

A business loan with partial security is a hybrid approach. A lender may take some form of security or additional support, such as a charge over business assets or a third-party guarantee, and then assess the blended risk through affordability. This can be relevant where only certain sites or assets can be secured, or where full coverage is not available. Typical amounts can fall around £75,000 to £400,000, with terms commonly 24 to 72 months. Indicative market pricing may sit between secured and unsecured options, roughly 6.5% to 16.0% per annum, with decisions often taking around 2 to 8 weeks due to extra checks.