Business Loans for Restaurants

7500+
Small Business
Customers
375 Million+
in Funded
Capital
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How Do You Get Restaurant Loans?

Do banks lend to restaurants? It’s no secret that restaurant owners in the United States have had difficulty getting traditional restaurant business loans over the years. Whether you are a member of a credit union or have a business bank account at a national bank, it can be challenging to get many types of restaurant loans or any bank loan, for that matter. But these are different times for restaurant owners. With the growth of new alternative online lenders and other lending sources, more restaurant loans are available than ever before to benefit your restaurant with some business funding.

How Do I Qualify for a Restaurant Business Loan?

Restaurant financing options can be a tricky approval process. Traditional lenders see these investments as extremely risky, which means qualifying for loans is a serious burden. These lenders won’t give restaurant loans out to just anyone. They’ll likely require a candidate with a great credit score, a robust business plan, and a significant amount of collateral for your restaurant loan in cash. Some could even ask you about your relevant hospitality experience as well. However, at AdvancePoint Capital, we’re not your traditional route for restaurant loans. We offer the best financing options that restaurant owners can take advantage of to get the funding you need.

AdvancePoint Capital has been experienced in funding restaurant operations for years and can help you access the best alternative business lending products. We understand the difficulties of operating a restaurant and the need for business financing to support it. Our job is to provide the best business funding products to you to run your business effectively. Whether you’re looking to purchase equipment, need some working capital, or you’re expanding operations — we have the best funding solutions you can rely on with our third-party lender network.

The 7 Best
Restaurant Financing Options for Restaurant Businesses:

Long-Term Small Business Loans

Long-Term Small Business Loans

A restaurant owner looking to expand the existing location or new location will need to get long term business financing option to spread the costs so not to negatively impact short term cash flow. The loan amount for long term loans typically exceed $100,000.

Short-Term Business Loan

Short Term Small Business Loans

Short term loans offer restaurant business owners with impaired credit or other eligibility requirements that a traditional lender would not accept, an opportunity for funding. A short term loan is easier to get approved for because of shorter duration to repay. Loan terms are short in duration to repay to reduce the risk to the lender. Short term loans are avaiable through alternative lenderss.

Business Line of Credit

Business Line of Credit

Restaurants sometimes need money on the fly due to cash flow situations and a line of credit can come in handy as you can draw on command without talking to the lender. Business lines have great interest rates and you only pay interest on your oustanding balance but this restaurant financing option has strict credit approval requirements. A line of credit is only for an existing restaurant with cash flow.

Equipment Financing

Restaurant Equipment Financing

Equipment costs can be high so equipment financing is a must. Restaurant equipment financing comes in the form of either equipment loans or equipment leases and the financing is colladerialized by the new equipment you are looking to purchase. Interest rates vary depending on credit and down payment. If you attempt to buy equipment that is used you may have to seek an alternative lender. Restaurant equipment loans and leases may except bad credit history but interest rate and loan terms will be impacted.

Merchant Cash Advance

Merchant Cash Advance
for Restaurants

Merchant cash advances are actually future sales receivables agreements that offer funding to businesses with bad credit, issues with financial statements, industry, time in business or reasons that traditional business loans don't accomidate. Merchant cash advances are set up for shorter lengths of time to repay and may cost more but there approval rate is much higher than that of a traditional loan. A Merchant cash advance is not a small business loan, but an advance of future receivables. this is a popular restaurant financing product in the restaurant industry as its has no personal guarantee and repayment is attached to future sales.

SBA Loan

Small Business Administration
(SBA) Loans

A SBA loan has favorable loan terms with great fixed percentage interest rates. It is important to note that they are not easy to get. SBA loans require good personal credit, financial documentation, business assets and a personal guarantee. Some Small Business Administration loans will require commercial real estate for collateral or personal assets. Loan amount plays a role in what loan option you can qualify for. Its important to work with a business financing originator who understands sba loans and there requirements and guidelines.

Small Business Cash Advance

Business Credit Card
for Restaurants

Most restaurants will need a credit card to help pay for things that come up in day to day operations. Credit cards are a great restaurant financing option as they have have no origination fees and variable interest rates but you only pay the interest rate based on your outstanding balance.

get started today

Get Started Today

AdvancePoint Capital makes the loan application process a simple, straightforward experience.

Benefits Of
Restaurant Business Loans

Cash Flow/Working Capital Loans

Operating small businesses like a restaurant is a complicated venture with many moving parts. There are a variety of issues that can impact the cash flow of the business, like seasonality, holidays, location, changes in food trends, and competition. Failing to meet payroll is not an option, so it’s essential to have working capital loans in place to control the ups and downs of the business and stabilize cash flow. From cash flow to seasonal needs, restaurant funding is a sound option to improve business finances.

Facility Expansion or Renovations

Your restaurant may need upgrades, repairs to the facility, sprucing up of interior décor, or exterior appearance remodeling of your restaurant to maintain or attract customers and keep a competitive edge. In some cases, a new concept or project, for example, an outdoor deck installation may present the need for funding. With so many loans available, growing your restaurant can come in many forms. Restaurant business loans offer a lot of diversity and access to expansion and renovation opportunities. These restaurant loans can be used to purchase additional inventory, lease more space, expand marketing efforts, buy new equipment, or even open up another operation.

Advertising

The internet marketing landscape has become a must but has also added additional costs to the restaurant business. That’s why restaurant financing for advertising is so popular. Having a presence on the internet with various sources such as Google, Yelp, and Trip Advisor — as well as maintaining a website and working on search engine optimization, helps keep your business on the top of Google search results. Additional costs for the growth of 3rd party delivery services (Grub Hub, Door Dash, Uber Eats) can be viewed as advertising costs, which can eat into your business’s bottom line. More traditional sources like mailers and flyers are also advertising mainstay and costs associated with operating. So, restaurant loans can also be used to make sure you can market effectively on a wide range of channels.

Point of Sale Systems, Software, and Technology Upgrades

Point of sale (POS) systems are continuously improving and providing efficiencies to restaurant operations. You must make sure eventual investments in this area are a foregone conclusion, and financing will be needed. A restaurant business loan can be used to update systems and create more efficient processes within your operation. Restaurant owners are always looking for new ways to keep their tables full, and improving the customer experience with easier processes and systems for staff can make a significant impact.

Restaurant Equipment, Maintenance and Repair Costs

Restaurant Equipment financing allows restaurant business owners to repair or replace essential equipment at the restaurant’s core. This can be expensive endeavor, and a restaurant business loan that improves kitchen equipment and costly parts is often needed.

Restaurant Equipment Purchases

Business owners may need restaurant equipment loans to purchase new equipment when repairs are not an option.

Food Costs or Inventory Financing

You might want to consider buying bulk non-perishable food items, and inventory financing may be necessary depending on business needs.

Refinance Existing Debt

Refinancing debt by combining existing debt into one loan payment under more affordable terms is a great way to improve business finances.

How Do You
Get Business Funding for Restaurant Owners?

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 confirms your small business’s financial history and legitimacy — and restaurant owners should be informed about what information they should have on hand before applying for restaurant loans.

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

Depending on the restaurant 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.

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Types Of
Restaurant Operations We Serve

Coffee shops

Cafés

Bars and lounges

Pubs

Fast food restaurant operations

Nightclubs

Restaurant franchises

Ice cream and frozen yogurt stores

Bakeries and pastry shops

Dessert shops

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Get Started Today

AdvancePoint Capital makes the loan application process a simple, straightforward experience.

Why AdvancePoint Capital?

Experience

We have experience with the restaurant industry and have been funding restaurant businesses for years.

Trust

We have excellent reviews and feedback from restaurant companies

Loan Specialists

Our team is made up of experienced business funding specialists who know the restaurant industry.

Products

A variety of restaurant business loan products. We don’t just offer what we have; we give you everything available in the marketplace.

Access

Access to third-party lenders, online lenders, and government-backed loan options

Fast

Fast approval process

Free

Our online quotes are always no cost and no commitment.

*AdvancePoint does not fund
California finance lender loans

Frequently Asked Questions

We’re the fast, convenient, and straightforward way to get the money you need for your restaurant - now!

Get your quote today by filling out our simple online form.

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