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Restaurant Business Loans - Build your loan On the Fly.
Do you need new equipment, employees or inventory for your restaurant? We have the restaurant financing tools you need to-go. Compare restaurant business loans with Upwise.
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Restaurant Business Loans: How They Can Help You
Running a restaurant or food service business comes with many challenges unique to the industry. Restaurants are very competitive in nature, which can make it difficult for owners to see consistent cashflow. Some restaurants are seasonal, in addition the high level of employee turnover also makes finding a high-quality staff difficult. It might seem overwhelming to manage cash flow through these unexpected ups and downs. That’s where business loans for restaurants and food service companies can help.
Open a New Location or Upgrade Your Equipment
If you are a small business owner looking to remodel your restaurant or open a new location, then a restaurant loan can be used to finance your renovation project. Additionally, if you need a business loan for restaurant equipment, see our financing and leasing options.
What can a Restaurant Business Loan be used for?
Partner with New Vendors
- Put yourself ahead of the competition by partnering with the new vendors using a restaurant business loan
- Have the extra funds to expand inventory and ingredients such as, adding a new craft beer on tap or adding a seasonal menu item
Hire More Staff
- With restaurant business financing, you can address the need for hiring more employees
- Apart from financing hiring, you may also use funds from a restaurant loan for training costs and payroll to keep your employees happy
Marketing & Advertising
- Use a restaurant loan to advertise and grow your customer base or promote new specials and discounts
- Build or optimize your website, add new signage, or place a magazine or newspaper ad to generate new customers
Manage Cash Flow
- Maintain your capital cash flow to manage expenses during the slow season
- Utilize restaurant financing loan options to fund your inventory and payroll, before your cash flow is low or business gets slow
Upgrade Restaurant Equipment
- You can use a restaurant loan to buy dining room interior design elements such as tables and chairs or add on an new outdoor space.
- Use equipment leasing and financing to purchase ovens, fryers, dishwashers and all top quality commercial kitchen equipment
Buy New Inventory
- Importantly, inventory is what keeps business going to ensure you have the necessary ingredients to cook everything on your menu
- Restaurant financing can be taken advantage of to ensure you can always purchase inventory and as a result keep your customers happy
6 Best Business Loan Options for Restaurants
Working Capital for Restaurant Companies
The restaurant industry has unique challenges when it comes to managing cash flow and working capital. Undoubtedly, margins are usually thin and it can take months for the restaurant to get paid. For instance, you can use a working capital restaurant loan to bridge the gap between the time you receive payment and meeting your capital needs. Working capital loans provide a fixed amount of money, with a fixed cost which are paid back over a term of 3-18 months.
Equipment Financing for Restaurant Companies
An equipment financing loan can be a great option for a restaurant loan, especially if you are looking to lease or finance a piece of equipment. Many restaurant companies utilize kitchen equipment and updated dining interior to give their customers a nice atmosphere. Therefore, a new piece of equipment can certainly have a huge impact on the growth of the business. A business loan for restaurant equipment is usually structured as a lease to purchase or a fixed-term loan.
Lines of Credit for Restaurant Companies
Restaurant lines of credit have the flexibility that other loans do not. Similar to a credit card in the sense that it’s a revolving line of credit which allows you to draw funds as you need it. Also, you only pay interest on the funds that you draw. Additionally, early repayment discounts work great for restaurants because once you’ve finished using the money, you can pay it back and save drastically on interest.
Term Loan for Restaurant Companies
A business term loan is another great option for restaurants or food service industry companies. Term loans are meant for those established restaurateurs. In other words, those that are showing a profit on their most recent tax returns, have been in business at least 2 years and have a good credit score. The proceeds from this type of restaurant loan can be used for a multitude of business purposes such as marketing, expansion or remodeling.
SBA Loans for Restaurant Companies
A Small Business Administration loan or SBA loan is a loan guaranteed by the Small Business Administration. On the contrary, the SBA is not the lender, but they do guarantee the loan through an approved SBA lender. Even so, a restaurant SBA loan is a highly desirable financing product, however the process is long with many paperwork requirements and high credit standards. See how an SBA loan for a restaurant business can help you.
Real Estate Financing for Restaurant Companies
A real estate financing loan can also be a great option for a restaurant loan, especially if you have collateral to secure against the loan. Many restaurants we come across have equipment, land, buildings or food purchase orders which can be used as an asset to secure a restaurant business loan. For instance, restaurant owners will use an asset for more favorable terms, resulting in a higher approval and lower interest rate. Similarly to an SBA loan, the process can be long and require lengthy paperwork.
How to Apply for a Restaurant Business Loan
Restaurant Funding Solutions
to Boost your Success
Small business restaurant loans are easy to secure. It only takes a few minutes to apply, and Upwise will present you with options.
Applying won’t impact your credit score.
Why Upwise for Restaurants
- We Know Restaurant Businesses
- Trusted by Companies Like Yours
- Personalized Experience
- Fast & East Application Process
- Loan Specialists Who Are Wiser & Care
- Transparent Terms & Automatic Payments
Types of Restaurant Companies We Serve
We offer restaurant loans to a wide range of industries and companies. You deserve options. Therefore, Upwise provides restaurant working capital, lines of credit for restaurant companies, commercial loans, business loans for restaurant equipment, restaurant business term loans, real estate financing and other restaurant business financing options, to meet all your needs. So, here are some of the restaurant companies & industries we’ve worked with:
- Restaurant & Food Service
- Cooks & Private Chefs
- Food Industry Event Companies
- Food Trucks
- Catering
- Wedding Venues
- Bars & Taverns
- Franchise & Multi Unit
- Bakeries & Cafes
- Specialty Food Shops
- Mall Food Outlets
- Gourmet Food Stores
- Supermarkets
Compare All Restaurant Business Loan Options
Max Loan Amount
$25K to $20MM
Profitability
Shown on Tax Returns
Loan Term
5 to 30 Years
Credit Score
620+
Interest Rate
7 % - 30 %
Time in Business
Greater than 2 Years
Speed
As Fast As 2 Days
Annual Revenue
Over $200K
Term Loan
A traditional business term loan is a lump sum of capital that you pay back with regular repayments at a fixed interest rate. The “term” in “term loan” comes from its set repayment term length, which will typically be one to five years long. Most business owners use the proceeds of term loans to finance a specific, one-off investment for their small business.
- Bi-Weekly & Monthly Payments
- Longer Payment Terms
- Lower Interest Rates
Loan Amount
$5K to $250K
Unsecured Line of Credit
Loan Amount
$100K to $10MM
Secured Line of Credit
Loan Term
6 Months to 2 Years
Credit Score
500+
Secured Line of Credit: 620+
Interest Rate
7 % - 25 %
Time in Business
Greater than 1 Year
Speed
As Fast As Same Day
Annual Revenue
$150K+
Business Line of Credit
A revolving business line of credit gives access to a pool of funds to draw from when a business owner needs capital. Unlike a traditional business loan, you have the flexibility to borrow up to a set amount, repaying only the amount you withdraw, plus interest.
- Weekly or Monthly Payments
- Only Pay Interest on the Funds you Draw
- Save on Interest by Paying Back Early
Max Loan Amount
100% of Equipment Value
History
Good Financial History
and Tradelines
Loan Term
1 to 8 Years
or Expected Life of Equipment
Credit Score
500+
Interest Rate
As Low As 4 %
Time in Business
6 Months +
Start Ups Encouraged to Apply
Speed
As Fast As 2 Days
Annual Revenue
100K+
Equipment Financing
Equipment financing helps you finance up to 100% of the new or used equipment you need for your business. A fast and easy way to finance the purchase of all types of equipment. With a secured loan against your equipment, you can take advantage of the equity in your existing equipment, or use newly-purchased equipment as collateral.
- Avoid large upfront costs for equipment purchased
- Equipment used as collateral
- Monthly Payments
Max Loan Amount
Up to 100% of Invoice Amount
Invoices
From Credible Clients
Repayment
When Customer Pays Invoice
Credit Score
Over 600+
Factor Rate
8 % - 30 %
Time in Business
Greater than 1 Year
Speed
As Fast As Same Day
Annual Revenue
150K+
Invoice Financing
Invoice financing is a type of asset-based financing that allows business owners to free up unpaid invoices. With invoice financing, you can get a fast advance of about 85% of the value of your invoices, with most of the other 15% paid to you later.
- No Need to Wait for Invoice from Customers
- Low Interest Rates
- Invoice is used as Collateral
Loan Amount
$5K to $5MM
History
Positive Payment History
Loan Term
3 Months to 2 Years
Credit Score
500+
Interest Rate
9.99 % - 24.99%
Time in Business
6 Months +
Speed
As Fast As Same Day
Annual Revenue
120K+
Short Term Loan
Short-term business loans are lump-sum loans that are designed to be paid back in less than 18 months. They can be a flexible financial tool, best used for financing short-term needs—including managing cash flow, dealing with unexpected needs for extra cash, bridging larger financing options, paying off expensive debt, or taking advantage of unforeseen business opportunities.
- Bad Credit Accepted
- Minimal Paperwork & Fast Funding
- Prepayment Discounts for Early Payoff
Funding Amount
$5K to $5MM
History
Positive Payment History
Time
3 to 18 Months
Credit Score
500+
Factor Rate
1.10 - 1.36
Time in Business
Greater than 3 Months
Speed
As Fast As Same Day
Annual Revenue
120K+
Working Capital
With this product, you are advanced cash in exchange for a percentage of your daily credit card and debit card sales, or your monthly revenue. Working Capital can be a quick and easy way to get a business cash advance with no need for collateral, even if you don’t have a good credit score.
- Minimal Paperwork, Easy Approval & Fast Funding
- Prepayment Discounts for Early Payoff
- Bad Credit Accepted
Loan Amount
$5K to $5MM
Loan Amount
$350K
SBA 7(a) Small & Express Loans
Loan Term
5 to 30 Years
Credit Score
650+
Interest Rate
Starting at 6.75 %
Time in Business
Greater than 2 Years
Speed
As Fast As 2 Weeks
Annual Revenue
Over $200K
SBA Loan
SBA loans are the government-backed loans your business needs. The U.S. Small Business Administration (SBA) is a federal agency designed solely to help small businesses get the funds they need. The SBA doesn’t actually lend you any cash, yet it establishes guidelines and guarantees portions of those loans by an approved SBA lender.
- Monthly Payments
- Longest Payment Terms
- Low Interest Rates
Max Loan Amount
$150K to $200MM
Collateral
Valued Over $150K
Loan Term
1 to 30 Years
Credit Score
620+
Interest Rate
6 % - 12 %
Time in Business
Greater than 3 Years
Speed
As Fast As 2 Weeks
Annual Revenue
Over 200K+
Real Estate Financing
An asset-based loan is secured by assets instead of emphasizing cash flow, which is typically real estate or whatever assets a business has on its balance sheet. Lender will use collateral which can be quickly and easily liquidated. Assets can also be accounts receivables, equipment, land, crop, purchase orders and inventory. Asset backed loans secured by collateral offered by Upwise are most often structured as term loans and revolving lines of credit.
- Interest Only & Monthly Payments
- Larger Loan Sizes
- Lower Interest Rates
Max Loan Amount
$100K to $10MM
Account Receivables
From Credible Clients
Loan Term
Based on When Customer Pays Account Receivable
Credit Score
Over 600+
Factor Rate
Under 18 %
Time in Business
Greater than 1 Year
Speed
As Fast As Same Day
Annual Revenue
200K+
Account Receivable Factoring
Accounts Receivable Financing, is a type of asset-based financing that allows business owners to free up unpaid receivables. With A/R financing, you’re advanced fast cash collateralized by approximately 85% of your account receivables, giving you an excellent way to put that money back into your business.
- No Need to Wait for A/R Payment from Customers
- Based on Credit of the Receivable's Business
- Account Receivable is used as Collateral
Restaurant Loans FAQ: Frequently Asked Questions
Can I qualify for a restaurant loan if I have bad credit?
Yes, even if you have a bad credit history, there are funding options available to you. At this time, short term loans, working capital, equipment financing and invoice financing are great options for those with less than average FICO scores.
How do I apply for a restaurant loan?
You can apply for a business restaurant loan through Upwise Capital, we make the application process very simple for you. Simply visit our online application here or call us directly to apply over the phone at (646)837-5522.
The amount of paperwork required for your application will depend on the product you are interested in or what your business will qualify for.
Step 1: Choose the right product for your restaurant business
- The first step is choosing the best financing or loan option that most aligns with your business needs. Consider what you’re using the funds for. Are you covering a short-term or long-term cost? Are you financing equipment or factoring receivables? We can assist you with choosing the best product for your needs, just give us a quick call at 646-837-5522.
Step 2: Gather & Submit Your Documents
Secondly, here is a list of documents required for most restaurant loan types:
- Driver’s license
- Voided business check
- Bank statements from the past three months
- Invoice for equipment (for Equipment Financing)
- Credit card processing statements from the past three months (for Merchant Cash Advance)
- Accounts Receivable Aging Report (for Accounts Receivable Factoring)
- Accounts Receivable (for Accounts Receivable Factoring)
- Debt Schedule (for Accounts Receivable Factoring)
Step 3: Fill Out an Application
- Third, you can begin the application by filling out our online application or calling us directly.
Step 4: Speak to an Upwise representative
- Fourth step, once you’ve submit your application, an Upwise representative will reach out to learn more about your business and explain your available options. Here we will go inform you of the repayment structures, rates, terms, conditions, etc. This way, you won’t have to worry about any hidden fees during the closing or repayment process.
Step 5: Receive your Approval
- Last but not least, if and when you’re approved for funding, you will be presented with an offer and approval. If you agree to the terms and conditions, you will receive a funding contract.
How long will it take to receive my funds?
This will depend on the product you are applying for. We have issued restaurant loans within 24 hours, as fast as the same day. The faster you provide us with the necessary documents, the quicker we can move on our end to expedite the process for you.
Approximate time for each product
Funds from restaurant loans such as business term loans, lines of credit, working capital loans, equipment financing, merchant cash advance, account receivable factoring and revenue-based business loans should appear in your bank account within 1-3 business days. For SBA loans and real estate financing, it can take up to 2-5 weeks to receive funds.
What are the advantages of small business loans for restaurants?
Restaurant businesses grow by taking on risks to expand and increase their revenue and bottom line. Thanks to restaurant loans, you can say “yes” when your cash flow would otherwise force you to say “no.” In other words, you don’t have to let expenses pile up, long gaps between compensation, or delays with inventory.
Cash flow shortages can make it difficult to retain high quality employees and build loyalty. This is one of the biggest challenges of restaurant businesses. Restaurant loans ensure that you’re always able to pay your employees on time, even when projects get delayed. After all, a larger team allows you to take on larger projects.
Other Advantages
You don’t need entirely consistent cash flow, a substantial bank balance, or excellent personal credit to be approved. You can still get funded in a matter of days, even if the majority of your operating capital is spoken for.
For this reason, many restaurant owners take out small business loans during the slow season so they can maintain funds to prepare for their busy season. In this case, we wouldn’t suggest a restaurant loan that requires you to make a large payment soon after you received the funding.
What are the disadvantages of small business loans for restaurants?
Although there are many advantages to getting a restaurant loan, many small business owners don’t want to get themselves into too much debt. As stated previously, receivables in the restaurant and food service business can be inconsistent. With so many factors out of your control, it’s therefore tough to predict how busy you will be. Clearly, adding a loan payment to the mix might do more harm than good in some cases.
What if I have bad credit?
If your business credit or personal credit isn’t optimal, you may be ineligible for the best restaurant SBA programs. An SBA generally requires excellent credit because you’ll be receiving the best interest rate and loan terms up to 30 years. Some programs allow you to use real estate as collateral to help obtain the SBA loan as well.
Am I eligible to apply if i already have another loan?
Yes, even if you have another loan with a bank or lender, your business may still indeed be eligible. As long as you have not defaulted, have a good payment history and underwriting determines that your business can afford to payback the loan, you can still qualify for a restaurant business loan.
is it hard to obtain a restaurant loan?
Importantly, this will depend on what type of restaurant business loan you are applying for. For example, an SBA loan is a lot harder to get approved for rather than an equipment financing loan. However, here at Upwise we offer a variety of loan options for you to choose from. In addition to this, each type of restaurant loan has different qualifications so that you can find the best solution that works for you.
What's the best business restaurant loan? What are restaurantloan rates?
See above, we go over the 6 best business loans for restaurant companies and food service industries:
- Working Capital for Restaurant Companies
- Equipment Financing for Restaurant Companies
- Real Estate Financing for Restaurant Companies
- Lines of Credit for Restaurant Companies
- SBA Loans for Restaurant Companies
- Term Loans for Restaurant Companies
Rates & Terms
The rates and terms depend on a wide range of factors which determine your business’ risk score. This includes: the product you’re applying for, how long you’ve been in business, credit history, use of funds, revenue & other financial factors. To determine which restaurant business loan is the best fit for your business, speak with a dedicated funding advisor to discuss your needs. Call (646)837-5522 today to compare your options.
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