How much do you need?
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
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for SBA loans | $5,000,000 | 650 | with Fundera by NerdWallet |
Triton Capital - Equipment financing | 4.1/5 Best for equipment loans | $250,000 | 575 | with Fundera by NerdWallet |
Fora Financial - Online term loan | 4.5/5 Best for bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
Bluevine - Line of credit | 5.0/5 Best for fast loans | $250,000 | 625 | with Fundera by NerdWallet |
iBusiness Funding - Online term loan | 4.5/5 Best for established restaurants | $500,000 | 660 | with Fundera by NerdWallet |
Headway Capital - Line of credit | 4.7/5 Best for new restaurants | $100,000 | 625 | with Fundera by NerdWallet |
OnDeck - Online term loan | 4.7/5 Best for high-revenue restaurants that can’t qualify for traditional financing | $250,000 | 625 | with Fundera by NerdWallet |
Here are 7 restaurant business loans
Best for SBA loans
Best for equipment loans
Best for bad credit
Best for fast loans
Best for established restaurants
Best for new restaurants
Best for high-revenue restaurants that can’t qualify for traditional financing
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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
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.
SBA 7(a) loan
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.
Qualifications:
- For-profit U.S. business.
- Unable to access credit on reasonable terms from nongovernment sources.
- Financial qualifications determined by individual lender.
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
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
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.
Qualifications:
- Minimum credit score: 580.
- Minimum time in business: Two years.
- Minimum annual revenue: $150,000.
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
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
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.
Qualifications:
- In business for at least six months.
- At least $20,000 per month in revenue.
- No open bankruptcies or dismissed bankruptcies within the past year.
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
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.
Bluevine - Line of credit
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.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $120,000.
- No bankruptcies in the past year.
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
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.
iBusiness Funding - Online term loan
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.
Qualifications:
- Minimum credit score: 660.
- Minimum time in business: Two years.
- Minimum annual revenue: $50,000.
- No bankruptcies in the past seven years.
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
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
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.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: Six months.
- Minimum annual revenue: $50,000.
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
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.
OnDeck - Online term loan
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.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: One year.
- Minimum annual revenue: $100,000.
- Must have business bank account.
What is a restaurant business loan?
What are restaurant loans used for?
- 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
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
- 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
1. Decide which type of funding you need
2. Evaluate your business’s qualifications
3. Compare and research lenders
4. Gather documentation and submit your application
- Basic information about you and your business.
- Business and personal bank statements.
- Business and personal tax returns.
- Business financial statements.
- Collateral information.
How to get a business loan to open a restaurant
Methodology
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.