Business Loans for Bakeries

Find the Best Business Loan for Bakeries at AdvancePoint Capital. Compare, Choose and Save.

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Choosing the Best Bake Shop Business Loan Program

According to the American Bakers Association*, the baking industry generates more than $154 billion in economic activity annually and employs almost 800,000 highly skilled people. Who doesn’t like baked goods or pastries? But, it’s no secret that bakery owners have had difficulty getting business loans for their small businesses over the years. Whether you are a member of a credit union or national bank customer, it is tough to get many types of bakery funding or any bank loans, for that matter. But these are new times, and from that, new alternative lending sources. The bakery owners have more access than ever before to get small business funding.

A traditional bank see's bakeries as a risky business, which means qualifying for loans is a challenge. Traditional banks won’t give loans out to just small business owner. Traditional banks will likely require an excellent credit score from bakery owners, a robust business plan, and a significant amount of assets in your business. Some could even ask you about your relevant hospitality experiences as well. That’s where AdvancePoint Capital can help.

AdvancePoint Capital’s goal is to help small business owners. We have lots of experience providing bakery loans for bakeries for years and can allow you access to the best alternative business lending products through our network of lenders and financing options. We have no minimum credit score requirements, although better the credit score, the more options we can offer.

We understand the difficulties of operating a bakery and the need for business loans to support it. Our job is to effectively provide the best business funding products to you, the small business owner, so you can effectively operate your business. Whether you’re looking to add customers, purchase equipment, improve counter service, need some working capital, expanding operations, or any other business needs — we can find the best bakery loan for your business.

Small Business Owners in the Bakery Industry that we Serve

  • Commercial/Wholesale Baked Goods
  • Retail Bakeries
  • Bakery Cafes
  • Pastries and Baked Goods Shops
  • Home Bakeries
  • Bakery Schools
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AdvancePoint Capital makes the loan application process a simple, straightforward experience. Check out our great customer service!

The 8 Best Bakery Small Business Loan
Options for Bakeries

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Long-Term Small Business Loans for Bakeries

Long term loans are used for businesses who want to grow, need to expand and have a high price tag for that expansion. Long term loans spread the cost out over years so payments are affordable. Interest rates are also attractive.

Short-Term Business Loan for a California Small Business icon

Short-Term Small Business Loans for Bakeries

A short term loan comes in handy when traditional loan is not an option due to credit or other reasons. Short term loans are more tolerant to credit and reduced documentation is necessary for funding making it a popular alterative.

Business Line of Credit

Business Line of Credit for Bakeries

Line of credit is a great option when small businesses want access to a line that they can draw money when needed and only pay interest on outstanding balance.

SBA Loan

Small Business Administration (SBA) Loans for Bakeries

SBA loans are popular with business owners because the have attractive interest rates and terms. SBA loans are backed by the Small Business Administration and funded by SBA approved lenders. Be prepared for the SBA loan application process and to supply a lot of documentation when applying for an SBA loan. SBA Loans are worth the effort.

Merchant Cash Advance for a California Small Business

Merchant Cash Advance for Bakeries

Merchant cash advances are a business financing alternative to a small business loan. A merchant cash advance is not a loan, but an advance of future sales of the business based on the businesses annual revenue. The merchant cash advance is prepaid by the funder taking a set fixed percentage of future credit card sales until paid in full. A great working capital loan alternative.

Invoice Financing

Invoice Financing for Bakeries

Invoice financing, also know as invoice factoring, is a great product for businesses that invoice there clients on a monthly basis and will like to get an advance off of the unpaid invoice before the net terms of 15, 30, 45 or 60 days.

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Equipment Financing for Bakeries

The bakery industry relies on equipment for there baked goods and operations. Equipment financing uses the equipment as collateral so that the business can get favorable financing terms.

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Business Credit Cards for Bakeries

Credit cards are an additional bakery financing tool that compliments the needs of the business. Credit cards are commonly used by many small business owners who have the need to make quick purchases or to pay some bills.

Benefits of Bakery Loans: Typical Business Needs

Running a bakery can have a unique set of cash flow issues. Payroll, advertising, equipment maintenance, and purchases — as well as property maintenance and improvements, can really cut into cash flows. This makes it essential to have financing to balance your revenue and have the proper reserves to handle anything that may come up, such as capital expenses.

Working Capital

Operating small businesses in the bakery industry is a complicated venture with many moving parts to it. Various issues can impact the company’s cash flow and business bank account, like seasonality, holidays, location, changes in food trends, and competition. Small business funding is necessary when meeting payroll is not an option as the people who work at the bakery are usually essential. Also, it’s critical to have bakery loans in place to control the ups and downs of the business and stabilize cash flow. From working capital to seasonal needs, bakery loans are a sound working capital funding option.

Business Facility Expansion/Renovations

Bakery shops may need upgrades or repairs to the facility, spruce up the interior décor or exterior appearance to maintain or attract customers, and maintain a competitive edge to grow your business and increase market share. Perhaps you’re adding a new location. With so many financing options available, growing your bakery can come in many forms. These bakery loans can be used to purchase additional inventory, lease more space, expand marketing efforts, buy new equipment, or even open up another operation.

Point of Sale Systems, Software, and Technology Upgrades

The point of sale systems is continuously improving and providing efficiencies for bakery operations. It’s a foregone conclusion that financing will be needed as the cost can get quite absorbent. Bakery business loans can be used to update systems and create more efficient processes within your operation. Bakery businesses are always looking for new ways to keep their tables and cafes full. Improving the customer experience with easier processes and systems for staff can make a significant impact.


What owner doesn’t want more customers and an increased customer base? Internet marketing and social media are not a trend but something customers demand. Focusing on the internet has become a must for retail bakeries looking to grow, but it has added additional costs to the bakery operation. That’s why bakery loans for marketing campaigns and social media are so popular. Having a presence online with Google, Yelp, and Trip Advisor, plus maintaining a social media presence on Facebook and Instagram, is very important for success and meets customers’ demands. Your bakery website and work on search engine optimization help keep your small business on the top of google search and grow your business by adding customers.

Maintenance and Repair of Bakery Equipment

Bakery equipment financing allows bakery shop owners to repair and/or replace essential equipment at the core of the bakery business. Equipment can be an expensive investment. A bakery business loan that allows the bakery owner to improve kitchen equipment and costly parts is often a lifesaver.

Purchase of New Bakery Shop Equipment

The bakery industry relies on high-quality equipment for operations. New equipment can be expensive. Bakery loans might be essential when repairs are not an option due to the high costs of replacement for the business.

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3 Questions to Ask Yourself When Getting Small Business Funding:

1. How long has your bakery been in business?

Time in business is a standard requirement for bakery financing — or any type of loan you plan on obtaining as a business owner. A young shop is far riskier than a seasoned one. This information shouldn’t be news to any bakery owner reading this, but it’s vital for bakery shop owners everywhere to understand.

Due to the high risk of the restaurant and baking industries, lenders must know if you’ve been around for a substantial amount of time. Time in business shows lenders that you can overcome obstacles and tackle challenges that come with time in the industry. If so, you’re in much better shape to obtain financing for your bake shop.

2. How does your bakery business handle cashflow?

There are some documents that many lenders will require so that they can assess a loan under your circumstances. A bakery owner planning on getting small business funding should always make sure to offer up documentation like business bank statements, personal and business tax returns, profit and loss, and perhaps, even more, depending on the small business funding option. This information proves any revenue and profit — which is frequently a big player in whether or not you’ll qualify for loans. Now, what paperwork you’ll need ultimately depends on the small business funding product. A business cash advance may require one thing, but a term loan is likely to have much harsher requirements. However, all of these documents we mentioned are relatively typical when attempting to obtain funding for bakeries.

3. What are your borrowing habits?

While many funding options have varying credit score requirements, all of them will require some sort of personal and business credit score and overall credit history. Bakery owners need to show lenders how well they manage loans. It’s all about trust and sound investments when it comes to bake shop loans.

So, a credit score is important to show banks that your borrowing habits are fruitful for the lender. Now, even if you have less than stellar credit, there are still bakery loans that you can seek. However, the interest or term will be more costly due to bad credit. You won’t see bank loans or credit unions offer loans to poor credit borrowers.

That being said, alternative business finance companies still provide financing opportunities that business owners can take advantage of for working capital or any other need. Make sure you are constantly working to improve your personal credit.

How Do You Get a Small Business Loan for a Bakery Shop?

There are many options to consider, and with such a wide range of lenders and financing options available, it can be challenging to get started with the application process. Lenders will want some pertinent information, regardless if they’re an online lender or from a traditional financing institution. This information mainly serves to confirm your small business’s financial history and legitimacy — and the bakery owner should be informed about what information they should have on hand before applying for bakery loans.

For years, we’ve empowered small business owners around the United States with the best financing opportunities and loan options that people like you can use to fund your operation.

Depending on the bakery loans you’re looking at, each will have different requirements. However, there are some standard questions that you can expect to run across during your search for loan options.

advance point bakery loans

Why AdvancePoint Capital?

  • Experience with Bakery Owners – We have been providing bakery financing for years.
  • Trust – Excellent reviews and feedback from bakery small business owners
  • Loan Specialists – Experienced business funding specialists who know the bakery industry and can provide financial growth tips as well as find the best interest rate.
  • No Obligation – No cost, no commitment quotes
  • Products – A variety of business loan products for professional bakeries. We don’t just offer what we have; we supply what’s available in the marketplace.

Frequently Asked Questions

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