How Do Pubs and Bars Fund Cellar Stock and Refurbishment?

The funding challenge for pubs and bars

Pubs and bars fund cellar and bar stock continuously and refurbish periodically, with card and cash takings arriving daily against lumpy capital costs. The money goes out well before it comes back in, and for pubs and bars that timing mismatch — around cellar and bar stock plus periodic refurbishment — is the recurring pressure point. Understanding the shape of it is the first step to funding it without overpaying.

The facility that tends to fit

For this trade the natural route is merchant cash advance or short-term loan, because it matches the need rather than forcing a general-purpose loan onto a specific problem. Where a firm needs both an asset funded and a cash gap bridged, running two matched facilities is usually cheaper than stretching one to do both jobs. Read the underlying guide before committing.

Put real numbers behind it

Size the facility against your own figures with our true cost of borrowing calculator and the business loans explained on Learn. Borrowing a figure pulled from a forecast beats borrowing a round number, and it keeps the repayments matched to when cash actually arrives.

How lenders view the trade

Our sector page for pubs and bars sets out what a lender looks at, and the general answers on whether your sector affects getting a loan and how affordability is assessed give the wider picture. Credicorp lends to limited companies and LLPs, not individuals, with no personal guarantee. When ready, you can apply. General information, not an offer of finance.