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Best Restaurant Business Loans of 2024

By Randa Kriss
Last updated on October 1, 2024
Edited bySally Lauckner
Fact checked and reviewed
Restaurant business loans from banks, SBA and online lenders can be used for a range of purposes from small supply purchases to large investments in equipment.

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Whether you’re a new restaurant owner or an experienced veteran, starting, running or expanding a restaurant requires capital. Restaurant loans are designed to meet the specific goals of restaurants, cafes and other businesses in the food and beverage industry. These small-business loans can be used for a variety of everyday, short- and long-term funding needs.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are 7 restaurant business loans

LenderNerdWallet RatingMax loan amountMin. credit scoreNext steps

SBA 7(a) loan

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Best for SBA loans

$5,000,000650

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Triton Capital - Equipment financing

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4.1/5

Best for equipment loans

$250,000575

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Fora Financial - Online term loan

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4.5/5

Best for bad credit

$1,500,000570

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Bluevine - Line of credit

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5.0/5

Best for fast loans

$250,000625

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iBusiness Funding - Online term loan

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4.5/5

Best for established restaurants

$500,000660

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Headway Capital - Line of credit

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4.7/5

Best for new restaurants

$100,000625

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OnDeck - Online term loan

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4.7/5

Best for high-revenue restaurants that can’t qualify for traditional financing

$250,000625

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Here are 7 restaurant business loans

Best for SBA loans

U.S. Small Business Administration

Max Amount

$5,000,000

Min. Credit Score

650

Best for equipment loans

Triton Capital

Max Amount

$250,000

Min. Credit Score

575

Best for bad credit

Fora Financial

Max Amount

$1,500,000

Min. Credit Score

570

Best for fast loans

Bluevine

Max Amount

$250,000

Min. Credit Score

625

Best for established restaurants

iBusiness Funding

Max Amount

$500,000

Min. Credit Score

660

Best for new restaurants

Headway Capital

Max Amount

$100,000

Min. Credit Score

625

Best for high-revenue restaurants that can’t qualify for traditional financing

OnDeck

Max Amount

$250,000

Min. Credit Score

625

I'M INTERESTED IN:

Our pick for

SBA loans

SBA 7(a) loans offer long terms, competitive rates and high loan maximums, which are ideal for restaurant owners who can qualify. In fiscal year 2024, over $5 million in 7(a) funding went to the food services industry.

SBA 7(a) loan

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Max loan amount
$5,000,000
Min. credit score
650
Est. APR
11.00-14.50%

Pros

  • Large borrowing maximums.
  • Interest rates are capped.
  • Long repayment terms available.

Cons

  • Personal guarantee is required.
  • Collateral is typically required.
  • Longer processing times than online lenders.
Low interest rate

SBA 7(a) loan

Max loan amount
$5,000,000
Min. credit score
650
Est. APR
11.00-14.50%
Low interest rate

Our pick for

equipment loans

For purchasing restaurant equipment, like new refrigerators, ovens or other cookware, Triton Capital offers equipment loans with flexible payment structures that allow restaurant owners to make the best decisions for their cash flow.

Triton Capital - Equipment financing

4.1
NerdWallet rating 

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Max loan amount
$250,000
Min. credit score
575
Est. APR
6.50-34.99%

Pros

  • Can fund within one to two business days.
  • No prepayment penalty.
  • Flexible repayment options: monthly, quarterly, annually or semiannually.

Cons

  • Charges an origination fee.

Triton Capital - Equipment financing

NerdWallet rating 
4.1/5
Max loan amount
$250,000
Min. credit score
575
Est. APR
6.50-34.99%

Our pick for

bad credit

For restaurant owners who are struggling to qualify for funding because of bad credit, Fora Financial has a minimum credit score requirement of 570. It doesn’t have any restrictions on uses, which may be helpful for more unique restaurant purchases like safety equipment or food processors.

Fora Financial - Online term loan

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Max loan amount
$1,500,000
Min. credit score
570

Pros

  • Cash can be available quickly.
  • Get a discount for prepaying.
  • No collateral required.
  • Low minimum credit score requirement.

Cons

  • Charges a factor rate that makes it more difficult to compare costs with other lenders.
  • Can’t build business credit.
  • Longest loan term is 18 months.

Fora Financial - Online term loan

NerdWallet rating 
4.5/5
Max loan amount
$1,500,000
Min. credit score
570

Our pick for

fast loans

Bluevine’s line of credit can fund within the same day as approval and can help restaurant owners build business credit. If you’re a restaurant with recurring expenses this can also be a good option, especially since Bluevine can approve and fund draws quickly.

Bluevine - Line of credit

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Max loan amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%

Pros

  • Cash can be available within 12 to 24 hours.
  • Can be used to build business credit.
  • Low minimum credit score requirement.

Cons

  • Requires weekly payments.
  • Requires personal guarantee.
  • Not available in North Dakota, South Dakota or Nevada.
  • Rates can be high compared to traditional lenders.
May fund quickly

Bluevine - Line of credit

NerdWallet rating 
5.0/5
Max loan amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%
May fund quickly

Our pick for

established restaurants

For restaurants that have been operating for a few years, iBusiness Funding offers competitive rates and long terms for affordable financing.

iBusiness Funding - Online term loan

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Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%

Pros

  • Cash can be available within two business days.
  • Competitive rates among online lenders.
  • Terms up to seven years.
  • iBusiness Funding also offers SBA loans up to $5 million.

Cons

  • Charges an origination fee.
  • Must be in business for a minimum of two years.
  • Minimum credit score is higher than some other lenders.
May fund quickly

iBusiness Funding - Online term loan

NerdWallet rating 
4.5/5
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
May fund quickly

Our pick for

new restaurants

Headway Capital only requires six months in business and a minimum annual revenue of $50,000. The same-day approval and next-day funding can benefit busy new restaurant owners who need to get things off the ground quickly.

Headway Capital - Line of credit

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Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%

Pros

  • Flexible qualification requirements.
  • No prepayment penalties.
  • Funds available by next business day after approval.

Cons

  • Most borrowers are subject to a 2% draw fee.
  • Not available in all U.S. states.

Headway Capital - Line of credit

NerdWallet rating 
4.7/5
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%

Our pick for

high-revenue restaurants that can’t qualify for traditional financing

OnDeck can help restaurant owners build business credit with online term loans up to 24 months. Due to the short terms and frequent, fixed payments, this is a good option for high-earning restaurants that are looking to build credit on smaller purchases.

OnDeck - Online term loan

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Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%

Pros

  • Cash can be available within the same business day (does not apply in California or Vermont).
  • Accepts borrowers with a minimum credit score of 625.
  • Streamlined application process with minimal documentation required.
  • Can be used to build business credit.

Cons

  • Cannot fund North Dakota-based businesses.
  • Requires frequent (daily or weekly) repayments.
  • Interest rates can be high compared with traditional lenders.
  • Requires business lien and personal guarantee.
May fund quickly

OnDeck - Online term loan

NerdWallet rating 
4.7/5
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
May fund quickly

How Much Do You Need?

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What is a restaurant business loan?

A restaurant business loan, typically offered by traditional banks or alternative lenders, can provide you with the cash you need to make restaurant-related purchases, such as ovens, cookware or serving ware, tables and more. Generally, your financing options — which include term loans, lines of credit, online loans, restaurant equipment financing and inventory financing — will depend on the type of restaurant you open, what you’re serving and who your target audience is.
There are no particular rates or terms that are specific to restaurant loans. Rather, the interest rate, loan term, fees and repayment schedule will vary based on the lender you select and factors such as your time in business, credit score and business revenue.

What are restaurant loans used for?

Restaurant business loans can be used for a range of purposes, including:
  • Opening a new location.
  • Remodeling, making repairs or expanding an existing location.
  • Covering everyday expenses, such as rent, utilities and software subscriptions.
  • Purchasing or upgrading equipment.
  • Buying inventory and supplies.
  • Paying your employees and/or hiring new workers.
  • Managing cash flow gaps during seasonal slows.
  • Other working capital needs.

Types of restaurant business loans

Restaurant owners can use many different types of business loans to get access to the capital they need. The best choice for you will vary based on why you need financing and your business’s qualifications, among other factors.
Here are some of the most common types of restaurant loans.
Loan type
Summary
Term loans
Business term loans offer a lump sum of capital up front, and are repaid in fixed payments, including interest, over a set period of time. They may be one of the most affordable types of restaurant financing depending on the rates and terms you qualify for.
Term loans are available from a variety of lenders, including banks, online lenders and other alternative lenders. The most popular type of SBA loan, the SBA 7(a) loan, can be used for a variety of restaurant purposes.
Business lines of credit
Lines of credit are available from both banks and online lenders. Online lenders will have more flexible qualifications, but higher rates than traditional lenders.
Business lines of credit can be a good option for getting working capital for your restaurant — or serving as an emergency fund.
Restaurant equipment financing
Restaurant equipment financing is a common type of asset-based financing, where the assets you are purchasing are used as collateral for the loan. Equipment financing can be used to purchase large items like an oven or dishwasher.
Because the assets purchased often serve as collateral, asset-based financing can be easier to qualify for than traditional business loans.
Inventory financing
Similar to restaurant equipment financing, inventory financing uses the products and supplies being purchased as collateral on the loan. Inventory financing is a good option to cover short-term gaps in cash flow, or even to purchase more inventory to meet increased customer demand.

How to compare restaurant business loans

The options for financing your restaurant can be numerous and overwhelming. There are some tips you can follow when comparing loans to help you make your decision.
  • Consider loan repayment terms. If you’re purchasing a large piece of equipment, or making expansions to your restaurant, you may want longer repayment terms for your restaurant loan. On the flip side, if you have the daily or weekly cash flow to pay off the loan quickly, that may be best for your business in the long run. 
  • Purpose of funding. The purpose of your loan can direct you to a specific type of financing, and rule out certain lenders. If you need to cover recurring cash flow gaps for inventory, a line of credit may be your best fit. If you are looking to make a large long-term purchase like a vehicle though, you may opt for a term loan. 
  • Timing of funding. Certain lenders are able to fund faster than others. When comparing lenders, make sure you understand your ideal funding timeline, and go with a lender that can match it. 
  • Lender reputation. It’s always a good idea to check the reputation of the lender you’re considering before you commit to anything. You can look at websites like Trustpilot or the Better Business Bureau (BBB) to see feedback from other borrowers. As a restaurant owner, it can also be helpful to ask if your lender has worked with a lot of restaurants before. There may be industry nuances that affect the timing of funding or understanding of loan purposes. 

How to get a restaurant loan

To get a loan for your restaurant, you can follow these steps.

1. Decide which type of funding you need

You’ll want to determine which type of financing will best meet your business needs. If you’re looking to buy a new refrigerator, for example, an equipment loan may be the right option.
You should also consider how much capital you need, how fast you need it and how much debt you can afford.

2. Evaluate your business’s qualifications

Most small-business lenders will use your time in business, annual revenue and credit score to evaluate your eligibility. They may also consider your cash flow, sales projections, debit and credit cards sales and available collateral.
You’ll want to review your financial statements and credit reports ahead of time so you know where you stand with potential lenders.

3. Compare and research lenders

Once you have an understanding of your funding needs and business qualifications, you can narrow down your lender search accordingly. If you have fair credit and need fast working capital, a line of credit from an online lender such as Bluevine might be a good option.
You’ll want to research and compare multiple lenders to find the right fit for your restaurant.

4. Gather documentation and submit your application

Restaurant loan application requirements vary based on the lender and type of financing. In general, you’ll need to provide some if not all of the following:
  • Basic information about you and your business.
  • Business and personal bank statements.
  • Business and personal tax returns.
  • Business financial statements.
  • Collateral information.
If you’re applying for an equipment or inventory loan, you’ll likely need to provide details and pricing information about those assets.
Funding times will also vary based on financing type and lender. Bank and SBA loans can take anywhere from a few weeks to a few months to fund, whereas online lenders may be able to offer same-day loans.

How to get a business loan to open a restaurant

Getting a startup loan from a traditional lender can be a challenge for an entrepreneur who wants to open a restaurant. Banks often require multiple years in business and excellent credit.
However, microloans, including SBA microloans — with loan amounts generally up to $50,000 — can be easier to qualify for than a bank loan and may be an option to help fund a new restaurant. Also, using an SBA 7(a) loan to buy an existing business could be an alternative if your plan is to take over an existing restaurant.
Other forms of startup funding you may want to consider include alternative lenders, investors, crowdfunding and business grants.
Last updated on October 1, 2024

Methodology

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms - Flexible payment options - Fast funding times - Accessible customer service - Reporting of payments to business credit bureaus - Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

Wondering if you qualify?

It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.

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Frequently Asked Questions