Buying a coffee shop

Funding designed for your plans


A coffee shop means hard work - but it can mean very attractive profits - if you have the funding you need

You need your coffee shop in the right location, with the right interior and the menu, price points and choice for your target market. You also need to attract customers who are happy to pay as much as £5 for a speciality coffee.

There will be financial challenges in providing the premises, interior, staff and equipment to the standards required.

Buying an existing business might be the simplest route to success. You can be sure the business is viable from the level of sales that it is already doing, and see where the opportunities are for you to put your own stamp on the business to build it up.

Of course, the more successful the existing business, the higher the cost of buying it will be, and the greater the challenges of finding the funding.

A coffee shop with plenty of passing trade, in an area that is already wealthy or up and coming might be a sound investment.

Funding to buy a coffee shop

Whether you are buying into an existing coffee shop as a partner or buying it outright, you will have some substantial costs. Getting expert advice on what the property is really worth is essential.

The profitability of the shop under the existing management and the potential of the location will have to be measured against the ongoing costs of staff and overheads. Always ask why the existing owner is ready to sell.

However, although costs may be high, buying an established business can actually be less of a risk that starting up, as the costs and profitability can be clearly predicted.

However, your challenges might not stop with buying the business. Once you are the owner, you may find that you need to re-equip or refurbish.

At Rangewell, we understand those challenges you face, and we have an expert team who can help find the solutions to them.

We can work with you to understand your finance needs, and to find the most appropriate solution from the many types available.

Funding Options

Getting the right kind of finance is essential. Options include:

At Rangewell we work across the entire lending industry, and we have finance experts with personal experience in the catering industry. This means that we can help you find the funding you need for your business - and even help you combine various types of funding into a ‘jigsaw’ funding package.

We want to find the solution you need for your coffee shop business purchase plans -and we will use our expertise to find the solutions you need.


New owner in a sector rejected by many lenders


£425,000 Commercial Mortgage based at 3.9% - plus Asset Finance - plus £30,000 cash advance with an MCA


A thriving business for the new owners!

A husband and wife team wanted to buy a coffee shop in London’s bustling Bayswater. They owned three commercial properties and, although they had outstanding mortgages, they hoped to raise an additional £550,000 with a Commercial Mortgage to buy the property and premises.

The business was established and had provided a good income for the existing owners, who were ready to retire. The property was small, but the location was close to bus and tube stops.

Turnover was excellent - with takings of £30,000 in a good month with opportunities to increase business still further.

But the husband had no catering experience - usually considered essential in the catering industry. The couple’s financial history had blemishes, which made borrowing harder.

The couple approached lenders, who were all unable to help.

“We were keen to build a business, and we knew we had the ideal location. But we could not find a lender who would listen to us.”

Our expertise helps us find solutions where others can’t. We looked at the figures, and saw that the couple’s total borrowing requirement of £550,000 was also causing difficulties with lenders. London property commands high prices and can offer excellent security. But the value of the lockup premises was insufficient to provide the level of lending they needed with a Commercial Mortgage.

Our finance team looked at the costs and came up with a way to provide the funds needed. It’s called ‘Jigsaw’ funding. We look at all the costs of buying a business and put together a funding package with the most appropriate funding type for each one.

Buying an existing business can be the best way to ensure success – you know what income you should be making. But costs can be high. Our ‘Jigsaw’ funding solution is an ingenious way to help.

How the jigsaw fits together

£425,000 Commercial Mortgage based on a 35% deposit, at 3.9%

£80,000 of Asset Funding, to cover the fixtures and fittings

£30,000 of cash advance via an MCA

We used our network of connections throughout the lending market and our unique online search tool to find the most competitive rate for each piece of the jigsaw, keeping costs down. Our customers used their savings of £150,000 as the deposit, while we helped them arrange a Commercial Mortgage for £425,000, the maximum the most appropriate lender would provide.

We then looked at the assets such as cookers and coffee machines, seating and other fittings. We arranged Asset Refinance which would provide an additional £80,000 of funding.

However, there was still a shortfall in the amount available. With an increasing number of customers paying by card, we saw the way to deal with this problem was by arranging a £30,000 cash advance with an MCA - a Merchant Cash Advance.

“Most people we spoke to just said the finance we needed could not be arranged.  Rangewell went the extra mile. They not only showed us that it was possible, they helped us through every step to arrange it.”

Armed with the finance they needed, our clients were able to negotiate the price for the business, and seal the deal. They are now working hard running their new business, and takings are already up.

I saw the opportunity in a new development - Rangewell helped me find the funds to set up a coffee shop in it.
We wanted to buy a coffee shop in a large shopping centre. Rangewell helped us to get the commercial mortgage we needed.
Coffee shops can be a great business - if you have the cash to set one up. With Rangewell’s help we did.

Helping you build your profits

Helping you buy your business

Buying a coffee shop may require many types of finance. We will find the types that are right for your needs - and develop a complete funding package.

Repayments scaled for you

Whatever the scale of your business, we can find finance with repayments scaled to your turnover.

The lending you need

We can provide finance for any need from a single piece of kitchen equipment to a complete, start-of-the-art setup with refrigeration, cooking and FOH.

Funding secured on equipment

Asset Funding avoids risk to your other assets. If you found the repayments became a problem, the lender could simply repossess the equipment.

A single loan for all your equipment

A single arrangement can cover items from multiple suppliers - making repayment simpler.

Better than 0% funding?

Some suppliers may offer 0% finance deals on equipment. Contact us to understand how we can help you pay less than with these ‘interest free’ deals.

Download Rangewell’s free and detailed guide to Finance for Catering Businesses

Rangewell Ebook - Download Rangewell’s free and detailed guide to Finance for Catering Businesses
  • Is there a way I can work with equipment I can’t afford to buy?

  • What types of finance are available to catering businesses and coffee shops and which is right for your business?

  • How to find the right provider for your funding and why they are not all the same

  • Are there downsides to business finance for catering businesses?

  • How can I arrange Asset Finance for my coffee shop business?

  • What paperwork do I need to provide with my business finance application?

  • Key finance terms explained in plain English.

  • Download our free e-book especially for catering businesses and coffee shops now

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Getting the right funding arrangement for your business is essential

There are many forms of business finance available. Getting the most appropriate type of finance for your individual needs is essential to avoid excessive costs.

The costs of Asset Finance

Investing in new machinery with an asset finance solution will mean making repayments from month one. Your turnover may not increase straight away, which may leave you with a cashflow issue.

Long-term financial commitments

You may not be permitted to back out of a finance arrangement once it has been set up.

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Every type of finance for every type of business from the entire market - over 300 lenders.


Specialist Finance Experts support you every step of the way.


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