Pub finance by

More pubs - FUNDED!​

As one of the leading funding brokers specialising in arranging pub finance, we’ll help YOU to buy, refinance or grow your pub business.


financing a pub purchase - Buy a pub, hotel or restaurant with funding from

Here for your pub finance needs is a specialist funding broker, working on your behalf we’ll get you or your business FUNDED.

We’ve been arranging finance for the pub trade since 1997. We’ve funded hundreds of pubs, bars and careers!

Everyone we work with gets the best service available, thats why we’ve been awarded best UK broker awards 6 years running.

Most pub owners are aiming at their own freehold at some point in the future.

Just like a buying a house, the capital outlay of buying a pub, especially a successful pub can be huge, but because the freehold of the property offers security, the lending market is strong.

Find out more about;

Buying a pub
How much you can borrow
Who can get a pub mortgage
Leaseholders buying a freehold
Buying a closed pub
Extending or refurbishing a pub

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Buying a pub

Buying your first pub is a daunting task.

You have your own budget, is that best invested in a lease or a freehold business?

How much could you stretch to on different types of business in different locations? 

What if the pub is closed or under trading? Or maybe it’s a pub company disposal and even though it’s trading, we don’t know how profitable it is.

Our finance experts have extensive experience in the pub finance market and using our FUNDED model will take the time to understand your business model and growth plans, as well as your immediate funding needs.

How much can I borrow?

How much you can borrow for your pub is dependent on a number of factors, because we’re working with a range of different lenders in the pub finance sector, it’s not always an easy, straightforward calculation – our finance experts will work on your behalf and negotiate with the lenders to get you the best deal.

Only a freehold pub offers real security to a lender, that means that if everything goes wrong, the lender can repossess the pub and sell the property.

If you become insolvent in a leased or tenanted pub the landlord will repossess the property and the lender will potentially be left with nothing.

So funding for;

  •  Freehold pub – open and trading – the funding is currently up to a maximum of 65% of the value of the going concern.
  • Freehold pub – closed or disposals – 50% – 65% based on the bricks and mortar value, depending on other   
  • Leasehold pub – varies on each case & depends on if you have security in the background (a house for instance)

We’ll look at the EBITDA (the underlying profit) of the business and compare that to the potential loan repayments.  

The lender will then have a Debt Service Cover Ratio – DSCR – which is basically how much profit you need to show for each pound of loan repayment.

In an ideal world we’d have three years figures, showing the trade and profitability up to yesterday and showing the comfortable ability to repay.

Realistically that’s not always possible so, we’ll take what we can get and work with it.

If you’re buying a business, the current owners might not be as motivated as you, we might need to look at your forecasts to make up for this.

Experience in the sector is ideal but not a pre-requisite.  Some lenders will only lend to experienced publicans, some will lend to those with management experience or transferrable skills.

Also relevant is your credit background, if you have a strong repayment history then lenders tend to trust you more than if your credit looks poor. 

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Can I get a pub mortgage?

We like to think the answer to this is YES!

We’re able to raise pub mortgages for customers with all types of financial background, experience and for all types of pub.

The better case we can put together the more you’re likely to be able to borrow and the better the deal will be in terms of the interest rate and maybe the other costs.

The factors we’re looking at are;

  • The trading history of the unit
  • Your experience in the trade
  • Your credit history

Jumping from leasehold to freehold pubs

The experience of running your own leasehold pub can vary dramatically but what happens next is up to you.

We have different options depending on how you can go forward in your pub owning journey;

The opportunity to purchase the freehold of your existing pub has the advantage that you already know the outlet, you will be able to maintain the goodwill of your existing companies and the chance to invest in the premises without the worry that the rent will increase.

Currently, we have commercial mortgages for sitting tenants at 90% of purchase price (subject to affordability stress tests and the market value of the going concern of the business)

Since we created this product with our pub mortgage lenders in the late 1990s we’ve funded hundreds of former Enterprise Inns, Punch Taverns, Admiral Inns and many other pub companies as well as private landlords.

Many customers with successful leases utilise the profits of the existing leasehold units to grow into the freehold market, giving them the ability to purchase freehold pubs which are closed or under-trading.

Traditionally the route to freehold involved buying a lease to trade up, sell it for a profit and then use those funds to jump into the freehold market.

Leasehold values have struggled to recover since the 2008 recession and as such the best means has been to save from the annual profits of the business.

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Extending and refurbishing your pub

Growing your business can be a very exciting time. 

Our advisors are able to assist with loans for the smallest of refurbishments, through to a full makeover and extension which might be funded by remortgaging.

Whatever your needs, our panel of lenders can fund it.

We’ll need to understand your existing business, your plans and the costings then we’ll be able to come up with a funding plan for you

loans for pubs from acorn commercial finance recently funded cases

What makes unique?

Having more than 300 lenders on our lending panel means our key task is to keep things simple for you!

We call it F.U.N.D.E.D. 

It’s a simple 6 step process, which is unique to

FUNDED means that your broker will take the time to understand your funding needs today AND your future plans before we make recommendations;

It saves you time and money because by having that detailed understanding we go directly to the best sources of funding.

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Acorn Finance & Mortgage Ltd is an appointed representative of which is authorised and regulated by the Financial Conduct Authority.

Full member of the National Association of Commercial Finance Brokers.

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