Marvin Onumonu365 Finance has reported that in 2024, the UK hospitality sector received £43.7m in funding, a 16.9% increase from 2023.
This trend continued into the first three months of 2025, with hospitality businesses being frequent applicants for revenue-based finance.
Data revealed that approved advances to the hospitality sector rose by 20.6% last year compared to the previous year, reflecting the need for extra funding amid rising costs and changing consumer behaviour.
Many small and medium-sized enterprises (SMEs) in hospitality face increased concerns over operating costs and cashflow due to the rise in National Minimum Wage and National Living Wage.
Additionally, data from 365 Finance showed the average advance applied for by SMEs in hospitality was just over £29,000 in 2024, with 52% being repeat customers.
A significant portion of applications, 40%, was for cashflow-related funding.
Warren Abbey, CEO of 365 Finance, said: “It is unsurprising, given all the financial considerations currently weighing heavily on hospitality businesses, that we have specifically seen such an uplift in the number of restaurants opting for the type of revenue-based finance we can offer them.
“It’s a trend which we predict will continue for the remainder of this year, as restaurants once again find themselves having to adapt to difficult economic and market conditions – just as hotels, pubs, and bars are also having to do continually.”
