Established hospitality and retail businesses can access local and regional grants (often tied to high streets and regeneration), energy-efficiency grants, and government-backed finance such as the Growth Guarantee Scheme. And because these are card-taking businesses, a merchant cash advance — repaid as a percentage of card takings — is often a flexible fit for refurbishment or equipment, with repayments that flex with trade. Combine grants with finance where it helps.
Key takeaways
- Local and regional grants can support high streets, retail and regeneration.
- Eligible hospitality and retail SMEs can use the Growth Guarantee Scheme.
- Merchant cash advances suit card-taking businesses — repayments flex with takings.
- Energy-efficiency grants help cut running costs on premises.
- Grants usually require match funding and combine with finance.
- Start with your local authority and growth hub for grants.
Hospitality and retail businesses face distinctive funding needs — variable and seasonal takings, premises and refurbishment costs, and rising energy bills. The good news is that established businesses in these sectors can access a useful mix of government grants, government-backed finance, and finance products built for card-taking trade. This guide explains what is available and how to use it.
Local and regional grants
Much of the grant funding relevant to hospitality and retail is local and regional, often tied to high streets, town centres and regeneration priorities. Because availability varies by area and these schemes are rarely promoted nationally, your local authority and growth hub are the best starting points. Where available, such grants can support premises improvements, regeneration and growth aligned to local objectives.
Government-backed finance
Eligible hospitality and retail SMEs can access the Growth Guarantee Scheme through accredited lenders, for term loans, overdrafts, asset finance and invoice finance, with a government guarantee that improves access. This can fund refurbishment, equipment or working capital, with the scheme’s protections — including that your principal private residence cannot be taken as security.
Merchant cash advances: built for card-taking trade
One finance option fits hospitality and retail particularly well: the merchant cash advance. This is finance repaid as a percentage of your card takings, which suits businesses with strong card sales — shops, restaurants, pubs and cafes. Because repayments flex with your daily takings, they are lower in quieter periods, easing cash-flow pressure compared with fixed loan repayments. It is a commercial finance product rather than a government scheme, but it is often the most practical fit for funding refurbishment, equipment or stock in these sectors.
For seasonal or variable trade, a merchant cash advance’s flexible repayments — rising and falling with your card takings — can be far easier to manage than a fixed monthly loan payment.
Energy efficiency grants
Premises-based hospitality and retail businesses are often energy-intensive, so green and net-zero grants are valuable — supporting energy-efficiency measures that cut running costs as well as carbon. These can combine with finance for larger projects such as significant refurbishment or equipment upgrades.
Funding refurbishment and equipment
For refurbishment or equipment, your options include:
| Option | Good for |
|---|---|
| Merchant cash advance | Card-taking businesses; repayments flex with takings. |
| Growth Guarantee Scheme loan | Term funding with a government guarantee. |
| Asset finance | Equipment, spread over its useful life. |
| Local / energy grants | Part-funding premises and efficiency projects. |
Combining grants and finance
As with other sectors, a local grant can fund part of a project, with government-backed finance or a merchant cash advance covering the rest, subject to the rules and any subsidy limits. Planning a coordinated package lets you take on a more ambitious refurbishment or growth project affordably.
How to access it
- Check your local authority and growth hub for local grants.
- Explore the Growth Guarantee Scheme via accredited lenders.
- Consider a merchant cash advance if you take strong card sales.
- Look at energy-efficiency grants for premises improvements.
- Combine grants with finance for larger projects.
The bottom line
Established hospitality and retail businesses can fund growth and refurbishment through local and regional grants, energy-efficiency funding, the Growth Guarantee Scheme, and — uniquely suited to card-taking trade — the merchant cash advance, whose repayments flex with takings. Start with your local authority and growth hub for grants, consider a merchant cash advance for flexible funding, and combine grants with finance to make ambitious projects affordable.
Frequently asked questions
What government funding is available for hospitality and retail?
Hospitality and retail businesses can access regional and local grants, high-street and town-centre support, energy-efficiency grants, and government-backed finance such as the Growth Guarantee Scheme. Alongside these, merchant cash advances suit card-taking businesses needing flexible funding.
Can hospitality businesses use the Growth Guarantee Scheme?
Yes. Eligible hospitality and retail SMEs can access the Growth Guarantee Scheme through accredited lenders for term loans, overdrafts, asset finance and invoice finance, with a government guarantee that improves access.
Are there grants specifically for high streets and retail?
Regional and local programmes sometimes support high streets, town centres and retail, often tied to regeneration priorities. Availability varies by area, so check your local authority and growth hub for current schemes.
What is a merchant cash advance?
A merchant cash advance is finance repaid as a percentage of your card takings, which suits businesses with strong card sales such as shops, restaurants, pubs and cafes. Repayments flex with your daily takings, easing pressure in quieter periods.
Is a merchant cash advance government-backed?
A merchant cash advance is a commercial finance product, not a government scheme. It is included here because it suits card-taking hospitality and retail businesses. Government-backed options such as the Growth Guarantee Scheme are separate.
Why are merchant cash advances popular in hospitality and retail?
Because repayments flex with card takings, they fit businesses with variable or seasonal sales. When trade is quieter, repayments are lower, which can ease cash-flow pressure compared with fixed loan repayments.
Can retail and hospitality businesses get energy grants?
Yes. Green and net-zero grants can support energy-efficiency measures, which are valuable for energy-using hospitality and retail premises, helping cut running costs. These can combine with finance for larger projects.
Who is eligible for hospitality and retail funding?
Eligibility varies by programme and may depend on your size, location and project. Many grants are local and tied to regeneration or growth, while finance options depend on the lender’s assessment. Check each programme or lender.
Do hospitality and retail grants require match funding?
Often, yes, for grants. Many cover part of a project’s cost, with the business funding the rest. Finance such as a merchant cash advance or government-backed loan can sometimes help fund the balance.
How do I fund refurbishment or equipment?
Options include asset finance for equipment, government-backed term loans, and capital grants where available. For card-taking businesses, a merchant cash advance can fund refurbishment with repayments that flex with takings.
How do I find local hospitality and retail funding?
Your local authority, growth hub and the business support finder are the best starting points for local grants, while accredited lenders and brokers can help with finance, including the Growth Guarantee Scheme and merchant cash advances.
Can I combine grants with finance in hospitality or retail?
Yes. A local grant can fund part of a project, with government-backed finance or a merchant cash advance covering the rest, subject to the rules and any subsidy limits.
Are hospitality and retail grants taxable?
The tax treatment depends on the grant’s nature and purpose. Confirm with your accountant, as it affects the net value.
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Get your free quoteThis article is general information, not financial advice. Eligibility, rates and terms vary by lender and your circumstances. The Loans Hub is a finance broker, not a lender.
