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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
| 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 with Fundera by NerdWallet | 4.1/5 Best for equipment loans | $250,000 | 575 | with Fundera by NerdWallet |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | 5.0/5 Best for fast loans | $250,000 | 625 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 4.5/5 Best for established restaurants | $500,000 | 660 | with Fundera by NerdWallet |
Headway Capital - Line of credit with Fundera by NerdWallet | 4.7/5 Best for new restaurants | $100,000 | 625 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 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
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%
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.
7(a) loans are issued by private lenders and backed by the SBA. They offer long repayment terms and low interest rates.
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.
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 with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
575
Est. APR
5.99-34.99%
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Typically requires a personal guarantee and UCC lien.
- Requires high minimum annual revenue.
Triton Capital - Equipment financing
NerdWallet rating
4.1/5
Max loan amount
$250,000
Min. credit score
575
Est. APR
5.99-34.99%
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 offers fast equipment loans up to $250,000 for businesses in a range of industries.
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Typically requires a personal guarantee and UCC lien.
- Requires high minimum annual revenue.
Qualifications:
- Minimum credit score: 575.
- Minimum time in business: Two years.
- Minimum annual revenue: $250,000.
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
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
Max loan amount
$1,500,000
Min. credit score
570
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 can be a good fit for borrowers who may fall short of qualifying for traditional bank financing or young but established small businesses looking for speedy financing.
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
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
Max loan amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%
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's 26-week line of credit provides fast working capital for short-term borrowing needs.
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.
May fund quickly
Our pick for
established restaurants
For restaurants that have been operating for a few years, Funding Circle offers competitive rates and long terms for affordable financing.
Funding Circle - Online term loan
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.
Cons
- Requires business lien and personal guarantee.
- Must be in business for a minimum of two years.
- Minimum credit score is higher than some other lenders.
May fund quickly
Funding Circle - Online term loan
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
For restaurants that have been operating for a few years, Funding Circle offers competitive rates and long terms for affordable financing.
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
Cons
- Requires business lien and personal guarantee.
- 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.
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
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
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%
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 offers a fast and flexible line of credit for borrowers who may not qualify for more traditional options.
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
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
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
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 offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
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.
May fund quickly
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.
See Your Loan Options
Frequently Asked Questions
It can be hard to get a restaurant loan because many lenders perceive the industry to be risky. To increase your chances of getting a restaurant loan, you should have good credit and strong finances.
Some lenders only require a minimum credit score of 500 for restaurant loans. However, to qualify for the most competitive restaurant financing, you’ll typically need a credit score of 650 or higher.
Some banks, like Bank of America and Wells Fargo, offer business loans for restaurants. However, these loans are often designed for larger enterprises and require strong financials to qualify. In general, banks can be hesitant to lend to restaurants, as they perceive the food and beverage industry to be risky.