Restaurant Loans and Financing for Small Businesses

Financing options to meet your restaurant’s needs
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We’ve helped many restaurants secure financing

We’ve helped many, many restaurants feed their financing needs with our simple, 15-minute application and network of 75+ lenders.

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Restaurant Business Loans

There are two main types of lenders: 1) Traditional (i.e. banks and credit unions) and 2) Alternative (cash advance providers, factors).

For long-time restaurant owners, traditional lenders offer the best rates and terms for restaurant business loans. The main types of traditional loans are term loans, lines of credit, and business credit cards.

Some downsides to a traditional loan, however, are that banks are slow to finance and strict about who actually qualifies. To get working capital faster, alternative lenders are a better option.

Types of Financing

Restaurant Equipment Loans

If you need to purchase a new dishwasher, kitchen equipment, food truck, or slushie machine so you can offer frosé, equipment financing is designed to meet your restaurant financing needs. If you’re seeking financing specifically for new equipment, why not try the business loan that has “equipment” in the name? The best news: because the loan is secured by the equipment you’re purchasing for your restaurant, it can be easier to qualify for an equipment loan than other loan types.

Restaurant Business Loans for Startups

If you’re looking for a loan to open a restaurant, a startup loan offers the financing you need without the longer time-in-business and revenue requirements of other business loans. To qualify for a restaurant startup loan, lenders usually require that you’ve been in business for 6 months and that the business owner has a strong personal credit history.

Franchise Restaurant Loans and Restaurant Acquisitions

Starting a franchise is perhaps the best alternative to starting your own restaurant. Because franchise restaurants have a track record of performance and an established market presence, banks are more willing to give you a restaurant business loan. (See, franchise financing.)

You can also buy a non-franchise restaurant with a business acquisition loan, though this has its own loops to jump through.

Short Term Loans

You understand how fast the restaurant business moves better than anyone. Sometimes, you have an urgent, short-term need for working capital. In these instances, a short term loan may be just what you need.

SBA Loans

SBA loans, guaranteed by the Small Business Administration (SBA), have the biggest name recognition in the restaurant business loan game. SBA loans can offer lower interest rates than other forms of financing, making it one of the most affordable forms of restaurant financing. To secure these highly competitive loans, you’ll have to be prepared for 2 things—quite a bit of paperwork and patience.

Business Lines of Credit

Sometimes the only constant in the food industry is change. A business line of credit provides a safety net for your changing financial needs. When you apply for a business line of credit, you’re awarded a maximum amount that you can borrow. You can then borrow as much as you like from that amount, pay it back, and repeat. Borrow only as much as you need, and you only pay interest on what you borrow.

Commercial Mortgages

Looking to purchase your current restaurant location? Or open a second one? A commercial mortgage can help you finance your restaurant building purchase.

Business Credit Cards

If a business credit card isn’t already in your restaurant financing arsenal, it should be. When you inevitably discover that you’re out of limes, let that last-minute dash to the store build rewards. A business credit card can make your everyday restaurant purchases work for you while building a credit history for your business.

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Apply for a Restaurant Small Business Loan

We’re going to level with you—there’s a hard way and an easy way to apply for restaurant financing. You can go through the bank, which requires a 29-hour application process and results in rejection for 80% of applicants. Or you can apply through Lendio. Our 15-minute smart application pairs you with offers from our network of 75+ lenders. You wouldn’t book an airline ticket without comparing prices, so why would you secure a business loan without comparing offers, rates, and terms?

Perks of the Lendio Loan Process

When you submit your Lendio loan application, we perform a soft credit pull, so it doesn’t affect your credit. Then you’re paired with a personal funding manager who can walk you through the process. This small business loan expert will answer any questions you have and help you make the right choice for your restaurant.

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How to Apply

Take 15-minutes to fill out our easy application. All you’ll need are answers to questions you already know about your business and 3 months of bank statements.

Quotes

“Needed capital to do some renovations for my business. The money I borrowed helped me do that, and now more clients are coming in than ever.”

Matt Davidson

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