Demand for hospitality and retail funding surges in 2026

Award-winning lender 365 Finance reports a sharp rise in the demand for funding from high street businesses, with a staggering 43% increase in restaurants opting for revenue-based finance when comparing Q1 2026 in-house data to Q1 2025.

Among SMEs in the hospitality industry that increasingly seek finance, the owners of pubs and bars are not far behind restaurateurs with a 39% year-on-year increase in successful funding applications* with the Soho-based lender.

As inflation, energy costs, business rates, the National Living Wage and employer National Insurance contributions all go up, retailers as well as hospitality outlets are looking at ways to manage cashflow – with revenue-based finance being a flexible solution which offers peace of mind, as repayments adjust according to the level of customer card sales.

The total volume of funding issued to food related retail businesses went up by 42% and for other SMEs in the retail sector the rise was 34% year-on-year, demonstrating the continued need for financial support across the high street.

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.”