Quick answer
Hospitality businesses take card payments daily, so their bank statements show steady trading — useful for unsecured options, typically $5,000 to $500,000. The harder costs are big and occasional: a fit-out, a coffee machine, a cool room, or getting through a quiet season. One-off purchases suit a loan; seasonal dips suit a line of credit; larger fit-outs or buying a venue usually suit a property-secured loan from $20,000 to $5,000,000.
Key points
- Daily card takings give lenders a clear picture of trading — a real advantage.
- Fit-outs and major equipment are the big-ticket costs; match them to longer-term funding.
- Seasonal dips and public holiday wage peaks suit a flexible limit rather than a lump sum.
- Margins are thin, so repayments must fit your quietest month, not your busiest.
- Unsecured
- Typically $5k – $500k
- Property-secured
- $20k – $5m
- First step
- No credit check to enquire
Hospitality is one of the few industries where the money comes in every single day. The tap-and-go at 7am, the lunch rush, the Friday night bookings — it all lands in your account within a day or two. That’s a genuine strength when it comes to funding.
The challenge is the other side of the ledger. Rent, wages, produce and suppliers never stop, margins are tight, and the big costs — a fit-out, a new espresso machine, a failed cool room — tend to arrive all at once. Let’s work out which kind of funding suits which hospitality need.
What makes hospitality different for lenders?
A lender assessing a café, restaurant, bar or takeaway sees a few things straight away:
- Daily settlements. Card takings show up as a regular stream, so lenders can see trading patterns clearly.
- Thin margins. Food, beverage and wage costs take a big share of every dollar, so repayments need to fit comfortably.
- Seasonality. Tourist towns, CBD venues and beachside cafés all have busy and quiet periods.
- Lease dependence. Most venues lease their premises, so the lease term and conditions matter.
- Equipment-heavy. Kitchens, coffee machines, refrigeration and furniture are major investments.
Which option suits which hospitality need?
| What you need | Tends to suit | Why |
|---|---|---|
| Coffee machine, oven, cool room | Loan matched to the equipment’s life | One-off purchase that pays back over years |
| Refurbishing or fitting out a venue | Property-secured or larger unsecured loan | Bigger amount, longer payback |
| Getting through the quiet season | Line of credit | Draw in the slow months, repay in the busy ones |
| Stocking up before peak season | Short loan or line of credit | Repaid as the stock sells |
| Buying an existing venue | Property-secured loan | Larger amount; the venue’s history helps |
| Covering an ATO debt | Case by case | One repayment rather than ongoing pressure |
Our fit-out and premises guide goes deeper if you’re planning a refurbishment or a second site.
How much can a hospitality business borrow?
It depends on what flows through your account and whether there’s property involved. Unsecured and line-of-credit options for trading businesses are typically $5,000 to $500,000 and are sized on turnover and bank statements. Property-secured business loans run from $20,000 to $5,000,000.
A useful coaching rule: size repayments against your quietest month, not your average. If July is your slowest month, ask whether the repayment still sits comfortably when July takings come in.
Curious what your venue could access? Check your options with a real person — it takes about a minute and there’s no credit check at that first step.
How do you plan for the quiet months?
Funding can smooth a quiet season, but planning reduces how much you need:
- Map last year’s takings by week. Your bank statements will show the pattern clearly.
- Set aside a share of peak takings. Even a small percentage builds a buffer over a busy summer.
- Flex your roster early. Adjust hours before the quiet period starts, not halfway through.
- Negotiate supplier terms. Longer terms in the off-season can ease pressure.
- Know your runway. Our cash runway guide helps you calculate how many weeks you can cover.
What trips up hospitality applications?
- Takings split across accounts. If card settlements go to one account and cash to another, lenders see only part of the picture.
- Late BAS. Hospitality businesses often feel BAS pressure; lodge on time even if you can’t pay in full.
- Short lease remaining. A lease ending soon raises questions about the venue’s future.
- Several short-term advances. Stacked advances against card takings can squeeze cash flow and worry lenders.
An illustrative example
Illustrative only. A breakfast-and-lunch café in a coastal town trades strongly from November to April and slows sharply in winter. The owner wants to replace a failing coffee machine before summer and would like a buffer for next winter’s wages.
Her funding plan ranks a loan for the coffee machine first, sized so the repayment still fits a July week, and a line of credit second for winter. Because her card takings flow into one business account, her statements show the seasonal pattern clearly — which helps a lender understand it rather than worry about it.
What should a café or restaurant have ready?
- Photo ID and ABN (plus ACN if you trade through a company)
- Last six months of business bank statements, ideally covering a quiet period
- BAS lodged and up to date
- Your lease, including the remaining term
- Quotes for any equipment or fit-out work
- Property details if you’re offering security
Buying an existing venue instead of starting fresh
Buying a café or restaurant that’s already trading changes the funding picture. The venue’s own bank statements, BAS and point-of-sale history help a lender understand what you’re taking on, which can open options a brand-new venue wouldn’t have. Before you commit, ask the seller for at least a year of statements and BAS, check the lease terms carefully, and have the equipment inspected — a tired kitchen can turn a bargain into an expensive project.
Hospitality owners: let’s fund the busy and the quiet
You look after your customers every day. We’d like to do the same for you — helping you find funding that suits your venue’s rhythm, not a one-size-fits-all product.
The enquiry takes about 60 seconds and there’s no credit check involved. We won’t scatter your details across a list of lenders; a real person reads your situation and calls you. Please answer accurately, especially about your monthly takings and whether you own property, so the first option we talk about is the right one.
Frequently asked questions
Can I get a loan to open a new café?
A brand-new venue has no trading history, so funding usually relies on property security or your own contribution. If you're buying an existing café, its trading history can help — ask the seller for bank statements and BAS.
How should I fund a new coffee machine or kitchen equipment?
A loan over the useful life of the equipment usually makes sense. Talk to your accountant about whether the instant asset write-off applies to your purchase.
What's the best finance for a quiet winter?
A line of credit is designed for seasonal dips — you draw on it through the quiet months and repay when trade picks up. It's usually better than a lump-sum loan for a need that comes and goes.
Do lenders look at my point-of-sale data?
Mostly they look at your business bank statements, which show your card settlements day by day. Clean statements with takings flowing into one account make assessment much easier.
Can I fund a fit-out for a second venue?
Yes. Fit-outs are larger, longer-term costs, so they often suit a property-secured loan or a larger unsecured facility if your existing venue trades strongly. Budget for the time it takes the new site to become profitable.