by Alison Jobson | Oct 11, 2026
Many of our clients in the pub, restaurant and hospitality sectors often find it harder to secure commercial finance than those in other sectors. Seasonal trading, tight margins and fluctuating accounts can obscure the full picture of a business’s potential and attractiveness as a borrower. For these businesses, finance isn’t out of reach, but it usually requires a different approach.
Why hospitality businesses can be harder to fund
Hospitality is a tough sector, with rising costs putting real pressure on operators. According to the British Beer and Pub Association, 161 pubs closed in the first three months of 2026, almost two a day and 26% more than the same period last year. More widely, hospitality insolvencies remain high, with 1,602 accommodation and food service businesses, including pubs, entering insolvency in the first half of 2026.
With that many businesses failing, it’s no surprise lenders are cautious. Many apply tighter criteria to a pub, restaurant or hotel than they would to a business in another sector. The challenge for a well-run business is being assessed on its own merits, not the sector’s track record.
When deciding whether to lend, lenders scrutinise trading accounts, and hospitality businesses often raise a few red flags. For example, a pub that’s had a difficult year, a restaurant still building up trade, or a seasonal business with a quiet off-season can all look riskier on paper than they are.
Lenders often value licensed and leisure properties differently from other commercial property, using trade valuations based on turnover and profitability rather than bricks and mortar alone. Not every lender is equipped to assess them accurately. Pubs can also be tied to a particular brewery or operator, which affects both the valuation and who’s willing to lend against them. Add in seasonal trading patterns and accounts that don’t always tell the full story, and it’s easy to see why some lenders are cautious before they’ve even looked at the detail.
Common hospitality finance needs
The most common reasons our hospitality clients seek finance are:
1. Purchasing a freehold pub, restaurant or hotel
Buying the property your business trades from, rather than leasing it, provides long-term security and control. Lenders will want to understand the trading history and the operator’s plan going forward.
2. Capital raising against an existing freehold
Many hospitality businesses use the equity in their property to clear other debt, fund refurbishment, or free up cash for the next stage of growth.
3. Funding refurbishment or expansion
Expanding or updating existing facilities is a common requirement for hospitality businesses. Lenders will need to see a credible plan for how the investment will pay off.
4. Clearing short-term or family borrowing
Hospitality businesses are often funded informally in the early years through family loans or short-term finance. Refinancing onto a proper commercial facility can put the business on a more sustainable footing.
What makes the difference
Hospitality deals tend to succeed when the lender understands the sector, rather than applying a generic checklist used for any other business. That means looking beyond a single difficult trading year to the reasons behind it, understanding seasonal cash flow rather than penalising it, and recognising the value of a well-run freehold business even when the accounts alone don’t tell the full story. Finding the right lender and knowing how to tell your story are key.
We recently helped hospitality clients purchase a closed pub with no operator experience, refinance to save their B&B from closure at the last minute, and secure an unsecured loan to fund significant expansion plans. Each required a lender willing to look at the whole picture, not just the numbers on the page.
Thinking about finance for your pub or hospitality business?
If you’re looking to buy a freehold, raise capital, or fund growth, contact your local ASC office to talk through your options. You can also browse our full portfolio of hospitality success stories here.
by Alison Jobson | Sep 23, 2026
Securing the right finance for your business can be challenging. Between comparing lenders, understanding different loan facilities, and gathering the right paperwork, it’s easy to see why so many business owners turn to a broker instead of going it alone.
If you use a commercial finance broker, here are the benefits you can expect.
1. Access to a wider range of lenders
Most business owners have a relationship with only one lender, usually their own bank. A commercial finance broker works with a much broader panel, including high-street banks, challenger banks, and specialist lenders who focus on particular sectors or types of finance. They also have relationships with funders who work only with brokers, not direct applicants.
Access to a wider range of lenders matters because not every lender suits every business. Some specialise in areas such as property finance, invoice finance, or funding for specific industries. A broker knows which lenders are likely to say yes to your particular circumstances, rather than leaving you to work through a long list of rejections yourself.
2. Independent, unbiased guidance
A broker isn’t tied to any single lender, so their focus is on finding the right deal for you, not on selling you a specific bank’s product. That independence means they can find a solution tailored to your business, not to the lender’s needs.
This is particularly valuable when your situation doesn’t fit a standard lending mould. If your business has unusual income patterns, a short trading history, or a deal structure that raises questions on paper, a broker can present your case to the lenders most likely to understand it.
3. Time-saving
Applying for business finance takes time. Researching lenders, comparing rates and terms, and completing multiple applications can quickly distract you from running your business.
A broker takes that burden off your hands. They understand what each lender needs to see, gather the right information upfront, and manage the process from application through to completion. That means fewer wasted applications, fewer delays, and more time for you to focus on what you do best.
4. Expertise for complex cases
Not every business finance requirement is straightforward. Development finance, bridging loans, complex commercial mortgages, and refinancing arrangements are often more complex than standard bank loan applications.
Brokers who specialise in commercial finance understand the nuances of these facilities and how to structure a case for the best chance of approval. They can also anticipate the questions a lender is likely to ask and address them before they become a problem, rather than after an application has stalled.
5. Better rates and terms
Because brokers have relationships with a wide range of lenders and a clear understanding of the market, they’re often able to negotiate more competitive rates and terms than a business might secure by approaching a lender directly. Even a small improvement in interest rate or loan term can make a significant difference over the life of a loan.
6. Support beyond the initial deal
A good broker doesn’t disappear once you’ve secured your finance. As your business grows and its finance needs change, an ongoing relationship with a broker means you have someone who already understands your business and can help you plan, whether that’s refinancing, raising additional capital, or structuring finance for your next stage of growth.
Is a broker right for your business?
If you’ve ever found yourself unsure where to start with business finance, unable to secure the right deal on your own, or simply short on time to manage the process, using a commercial finance broker is likely to save you time and money.
At ASC, we work for our clients, not the banks. We take the time to understand your business and match you with the right lender for your circumstances, whatever stage your business is at.
If you’d like to talk through your finance options, get in touch with your local finance expert.
by Alison Jobson | Sep 16, 2026
Business loans fall into two categories: secured and unsecured. Both can provide the funding your business needs, but they work quite differently. The right choice depends on your circumstances, assets, and how quickly you need the funds.
To summarise, the primary difference between the two is the use of security:
- A secured business loan requires security in the form of business or personal assets as a guarantee for the lender.
- An unsecured business loan doesn’t require this, but lenders may ask for a personal guarantee instead.
Here’s a closer look at how the two compare.
Security requirement
Secured business loans require you to pledge assets as loan security. This can include property, equipment, inventory, accounts receivable, or other valuable business assets.
Unsecured business loans don’t require any security. Instead, lenders base decisions on your creditworthiness, business strength, and financial standing.
Interest rates
Because secured loans are backed by assets, lenders view them as lower risk. If you default, the lender has an asset to fall back on to recover the debt. This generally means secured loans carry lower interest rates than unsecured business ones, which pose greater risk for the lender.
Loan amount
The value of the security often determines how much you can borrow on a secured loan. Lenders may offer a percentage of the asset’s appraised value.
Unsecured loan amounts are typically based on your creditworthiness, financial standing, and ability to repay. These loans are often capped at a lower level than secured borrowing.
Loan term
Secured loans can come with longer terms, allowing you to spread repayments over a longer period. Unsecured loans tend to have shorter terms, resulting in higher monthly repayments over a tighter timeframe.
Speed of approval
Unsecured business loans are often quicker to arrange because there’s no need for asset valuation or the legal work involved in securing a loan against property or other assets. If you need funding quickly, this can make unsecured finance the more practical option, even if it costs more. However, set-up costs will be much lower with no legal or valuation fees.
Secured loans usually take longer to complete, largely because of the valuation and legal processes required to register the lender’s interest in the asset. For time-sensitive purchases, factor this into your planning early.
Risk of asset seizure
If you default on a secured loan, the lender can seize and sell the asset to recover the outstanding debt. With unsecured loans, there’s no specific asset tied to the loan, so there’s no risk of a particular asset being seized. However, the lender may still pursue recovery through other means, including any personal guarantee given.
Which option is right for your business?
There’s no single right answer. The best fit depends on:
- Whether you have suitable assets to offer as security
- How quickly you need the funds
- The size of the loan you require
- Your business’s credit history and financial strength
- How comfortable you are putting assets on the line
A business with strong assets but a shorter trading history might opt for secured finance to access better rates. A business that needs funds quickly, or doesn’t want to tie up assets, might prefer the flexibility of unsecured borrowing, even if it costs more.
In summary
Secured business loans require security but typically offer lower interest rates and longer repayment terms. Unsecured business loans don’t require security, but usually come with higher interest rates, shorter terms, and lower borrowing limits.
The right choice depends on your risk appetite, creditworthiness, and ability to offer security, as well as how quickly you need the finance in place. If you’re unsure which route suits your business, speaking to a broker who can assess the whole picture, rather than just what one lender offers, is often the quickest way to find clarity.
If you’re unsure which route is right for your business, we can talk you through your options and help you find the finance that suits. Find your local finance expert here.
by Alison Jobson | Aug 26, 2026
If your bank is saying no to your finance application, it can feel like the door has closed. In reality, it’s often not the end of the road, and you may well secure the funding you need.
Banks work within tight, standardised lending criteria. That approach works well for straightforward, predictable cases, but it means many genuinely good businesses are declined even though they’re sound lending prospects. A decline usually reflects a mismatch with one lender’s specific criteria, rather than the business itself not being viable for finance.
Here are five of the most common reasons a bank is saying no, and why they are often not the end of the road.
Short trading history
High-street lenders typically want to see several years of consistent accounts before they’ll commit. That poses a problem for newer businesses, even those doing well and with a clear plan. A young business can still be an excellent lending prospect, but it often needs a lender willing to look beyond the short-term history to the substance behind it, including current trading, forward orders, and the strength of the plan. Specialist lenders are often set up to assess exactly that kind of proposal, and a good broker will present that to them.
Complex ownership structures
Multiple directors, family trusts, or overseas shareholders can raise red flags for mainstream banks, even where the underlying business is perfectly healthy and well run. These structures are common, especially among family businesses and international investors, but they add a layer of complexity that some lenders simply aren’t set up to underwrite. Knowing which lenders are genuinely comfortable working with more complex ownership can mean the difference between a fast decline and a successful application.
Accounts that don’t tell the full story
A difficult year on paper, maybe due to a one-off cost, a temporary dip in trade, or the impact of a specific event, doesn’t always reflect the real health of a business. However, banks tend to assess the numbers directly in front of them, without considering the wider context. A broker role can put the numbers into context by explaining what happened, why it was temporary, and what the trading picture looks like now. Presenting the full picture often changes the outcome.
Tight completion timeframes
Some deals need to move fast, such as buying a property at auction or pursuing a time-limited opportunity. Mainstream banks, with their layered approval processes, aren’t built for that pace. However, specialist and bridging lenders are set up to assess and complete deals quickly when the opportunity demands it. Knowing which lenders can genuinely move at speed, and having the relationships to get a deal in front of them quickly, can make all the difference.
Security that doesn’t fit a standard lending box
Not every asset fits neatly within a bank’s lending criteria. Unusual property types, partially completed developments, or non-standard assets can prompt a mainstream lender to say no, even when the underlying security is perfectly sound. Some lenders take a broader view of what can be used to secure finance, revealing options that a single bank, working to a narrow set of rules, simply won’t offer.
The bigger picture
None of these five reasons makes a business ineligible for a loan. They simply mean the mainstream route isn’t the right fit for this case. A broker can unpick exactly why a decline occurred, whether it’s timing, structure, accounts, or security, and match the business with a lender who will actually say yes.
If your bank is saying no and you aren’t sure where to go next, it’s worth having a conversation before you write off the possibility altogether. The right lender for your situation may exist, but it’s just a case of finding them.
If a bank has said no, don’t assume it’s the end of the story. Get in touch with our team to discuss your options.
by Alison Jobson | Aug 19, 2026
Nearly a fifth of UK commercial property loans are due to mature this year, and for many owners, refinancing in 2026 will look very different to the last time they went through the process.
The latest Bayes Business School review estimates that £33 billion of property loans, roughly 19% of all outstanding commercial real estate debt, will be coming up for refinance this year. This is happening at a time when the lending landscape has shifted.
A different market to refinance into
For years, UK banks were the default source of commercial property finance, but that’s no longer the case. The bank’s market share has fallen from 40% to 36% over the past year, while debt funds (private investment funds that lend directly to businesses, rather than taking deposits like a bank) and other alternative lenders have expanded to fill the gap, growing their share from 12% to 28%.
If you’re a property owner whose loan is due for renewal, this matters. The lender who provided the original finance may not be offering the best (or even a competitive) rate today. More lenders are active in the market, which is good news for choice, but it also means more products, more criteria, and more work to find the right fit.
Why refinancing early makes a difference
With so much debt maturing in the same 12-month window, lenders’ capacity and appetite may shift depending on how the year plays out. Leaving refinancing until close to your loan’s maturity date could mean fewer options, less negotiating power, and less time to deal with unexpected issues such as a valuation coming in lower than hoped, a change in the property’s income, or a lender pulling back from a particular sector.
Looking at your options early gives more room to manoeuvre. It allows time to compare lenders properly, address any figures that might need context (such as a temporary dip in occupancy, a one-off cost, or a change of tenant), and secure terms before the wider wave of refinancing activity puts pressure on rates and lender capacity.
What this means in practice
If your commercial property loan is due to mature in the next 12 to 18 months, it’s worth reviewing your position now rather than waiting for a lender’s renewal letter to land.
Questions worth asking include:
- Is your current lender still competitive, or has the market moved on since you last borrowed?
- Has anything changed in the property’s performance or your own financial position that a new lender would need context on?
- Are there alternative lenders, including debt funds or specialist lenders, who might offer better terms or more flexibility than a traditional bank?
A broker who understands the market can help answer these questions properly and match your situation with lenders who are actively looking to lend in your sector, rather than assuming your existing bank is still the best (or only) option.
Get ahead of the wave
The scale of refinancing due over the next 12 months indicates an active and competitive commercial property lending market. If your loan matures this year, getting ahead of the process gives you the best chance of securing the right terms, rather than reacting under pressure.
If your commercial property loan is coming up for renewal, get in touch with one of our local experts to talk through your options.
This is definitely coming down the track, so get ready!
