Hospitality has a cash-flow shape that most lenders read badly: takings land every day, but rent, wages, VAT and supplier terms land in lumps. A profitable site can still be short in the week a quarter-rent and a payroll run collide.
The squeeze, specifically
Card takings settle a day or two behind service, but a quarterly rent demand, a VAT return and a wage run do not wait for a good weekend. Add seasonality — a wet August, a quiet January — and the same site swings from comfortable to tight without anything actually going wrong in the business.
The usual response is to stretch suppliers. That works until it costs you the delivery you needed on a Friday, or the account terms you spent two years earning.
What operators in this sector actually fund
- Covering a quarterly rent demand that falls in a quiet trading month
- Kitchen equipment replacement when a walk-in or a range fails mid-service
- Refurbishment or a front-of-house refresh ahead of a busy season
- Stock and staffing for a known peak — Christmas bookings, a festival, a second site opening
- Clearing a VAT or PAYE bill without stretching supplier terms
A £30,000 advance, both terms
Say a 40-cover restaurant needs £30,000 to replace a failed walk-in and cover a quarter-rent that landed in a quiet month. Here is exactly what that costs on our published rates.
| £30,000 advance | 20 weeks | 26 weeks |
|---|---|---|
| Approved advance | £30,000 | £30,000 |
| Arrangement fee (5%, deducted at funding) | −£1,500 | −£1,500 |
| Paid to your account | £28,500 | £28,500 |
| Factor rate | 1.48 | 1.55 |
| Total repayable | £44,400 | £46,500 |
| Weekly payment | £2,220 | £1,788 |
| Total cost on cash received | £15,900 | £18,000 |
Illustrative, using our published factor rates. Your own rate is set by underwriting and is stated in pounds on your agreement before you sign it.
Whether you qualify
Four minimums. Meeting them is not the same as being approved — it is the point at which applying is worth your time:
- UK limited company or LLP — incorporated and registered at Companies House.
- 6+ months trading — six months is the least we can work with.
- £10,000+ monthly turnover — consistent, and visible in the business bank account.
- Active UK business current account — this is where the underwriting actually happens.
Hospitality operators often ask whether card takings are looked at differently. They are part of the picture, but what matters most is consistency in the business current account — the daily rhythm of money in and out is precisely what a revenue advance is priced against.
Why the decision being ours matters here
Hospitality files get declined by panel brokers for reasons that have nothing to do with the business: a seasonal dip in the wrong month, a sector code someone has blacklisted, a landlord dispute in the history. Because Solvo lends its own money, the decision is made by the people who priced it — we can look at why a quiet February happened rather than screening it out automatically.
Solvo funds £10,000 to £75,000 from its own book, usually within 24–72 hours of final documents. One decision, made by us — your file is not shopped around a panel. Above £75,000 we arrange the facility with a lending partner.
About 3 minutes. No obligation. Limited companies and LLPs only.
Frequently asked questions
Can a restaurant trading under a year get funding?
From six months of trading, yes, provided monthly turnover is consistently £10,000 or more and it is visible in the business current account. Under six months we cannot help — that is our floor, not a preference.
Does a seasonal dip count against us?
Not automatically. Seasonality is normal in hospitality and we expect to see it. What underwriting looks for is whether the pattern is predictable and whether the account behaves well through the trough — not whether every month looks the same.
How quickly can we have the money?
Usually 24–72 hours after your final documents are in. The clock starts when the file is complete, so the realistic way to be fast is to have six months of business bank statements ready before you apply.
What does it actually cost?
We do not charge interest. We agree one fixed total before you sign, using a factor rate — on a £30,000 advance over 20 weeks that is £44,400 repayable, with £28,500 reaching your account after the 5% arrangement fee. Your own rate is set by underwriting and stated in pounds before signature.
Illustrative only. Solvo Funding is a UK direct lender for limited companies and LLPs and also acts as an intermediary for facilities above £75,000. Advances are subject to underwriting; meeting the minimum criteria is not the same as being approved and we cannot guarantee an offer. Finance for limited companies and LLPs is generally not regulated by the Financial Conduct Authority.