The UK pub sector has faced significant headwinds — and mainstream banks have largely retreated from pub lending as a result. But specialist commercial lenders remain active, and for the right asset with the right borrower, finance is available.
Types of Pub Finance Available
- Acquisition bridging — for fast purchases, distressed assets, or where renovation is required before term finance is viable
- Conversion finance — funding the conversion of a closed pub to residential or mixed use (where planning permits)
- Commercial investment loans — for well-let, trading pubs with strong tenant covenants and lease terms
What Lenders Assess for Trading Pubs
- EBITDA and trading history — minimum 2 years accounts typically required for term lending
- Tenant covenant — free-of-tie vs tied, and the strength of the operator
- Location and catchment — urban village pubs in strong locations are favoured over isolated rural assets
- Wet-led vs food-led — food-led pubs with strong kitchen revenue are generally preferred
- Freehold vs leasehold — freehold strongly preferred by lenders
A closed or distressed pub is often best approached as a bridging/conversion opportunity rather than a trading asset finance deal. We assess each pub deal on its individual merits and identify the right financing approach.
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Tell us about the asset, the loan amount, and your plans — we'll identify the right lender within 24 hours.
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