Jessica O'ConnorDemand for finance among high street businesses has risen sharply in 2026, as rising costs push more hospitality and retail firms to seek flexible funding solutions, according to data from 365 Finance.
The lender reported a 43% year-on-year increase in restaurants opting for revenue-based finance in Q1 2026 compared to the same period in 2025.
Pub and bar owners are also turning to funding in greater numbers, with a 39% rise in successful applications.
Retail businesses are facing similar pressures.
Funding volumes for food-related retail rose by 42%, while other retail small and medium-sized enterprises (SMEs) saw a 34% increase, highlighting widespread demand for financial support across the sector.
The surge comes as businesses contend with higher inflation, energy costs, business rates, the National Living Wage and increased employer National Insurance contributions, all of which are placing strain on cashflow.
Revenue-based finance is becoming an increasingly popular option, allowing repayments to fluctuate in line with customer card sales, offering more flexibility than traditional lending models.
Matt Sparrow, sales director at 365 Finance, said: “The numbers speak for themselves – high street businesses are under enormous pressure right now, and many owners are looking for smarter ways to stay afloat and keep growing.
“Revenue-based finance gives them the flexibility to access the funding they need without the rigidity of traditional loans.
“Repayments move with their sales, which means businesses can breathe a little easier even when trading is unpredictable.”
