Though the cadence of a busy kitchen and the sizzle of a hot grill may fuel the excitement of running a restaurant, restaurateurs are familiar with the pitfalls: broken equipment, customer gripes and employee turnover. But the financial requirements, in particular, can be overwhelming, even for the savviest business owners.
That’s why running a restaurant often requires funding, whether from investors, business credit cards or small-business loans. Compare these options for restaurant financing.
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 4 restaurant business loans
Lender | Best for | Max loan amount | Min. credit score | Next steps |
|---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for Restaurant loans for expansions or large expenses | $5,000,000 | 650 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | Best for Restaurant loans for working capital | $250,000 | 600 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | Best for Restaurant loans for purchasing inventory | $250,000 | 625 | with Fundera by NerdWallet |
OnDeck - Line of credit with Fundera by NerdWallet | Best for Restaurant loans for purchasing inventory | $100,000 | 600 | with Fundera by NerdWallet |
Our pick for
Restaurant loans for expansions or large expenses
SBA 7(a) loan
Max Loan Amount
$5,000,000
Min. credit score
650
Est. APR
7.75-10.25%
7(a) program participants include specialized lenders like Live Oak Bank and big-name traditional banks like Wells Fargo.
Lowest interest rate
Our pick for
Restaurant loans for working capital
OnDeck - Online term loan
Max Loan Amount
$250,000
Min. credit score
600
Est. APR
29.90-97.30%
OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
May fund quickly
Our picks for
Restaurant loans for purchasing inventory
Bluevine - Line of credit
Max Loan Amount
$250,000
Min. credit score
625
Est. APR
15.00-78.00%
Bluevine's line of credit provides fast working capital for short-term borrowing needs.
May fund quickly
OnDeck - Line of credit
Max Loan Amount
$100,000
Min. credit score
600
Est. APR
29.90-65.90%
OnDeck offers a fast line of credit for small-business owners with less-than-stellar credit who need to manage cash flow or buy inventory.
May fund quickly
How Much Do You Need?
- SBA loans: These government-backed loans provide the lowest rates among small-business financing and the longest repayment period. SBA loans are best for expansion or large expenses. To qualify, you need strong personal and business finances.
- Working capital loans: These loans typically provide short-term financing to help run your day-to-day restaurant operations. Online lenders can providing working capital loans quickly and often have less stringent qualifications than banks.
- Equipment financing: If you're looking to purchase large items like an oven or dishwasher, you can turn to restaurant equipment financing. This type of financing can be easier to qualify for than a traditional small-business loan because the equipment serves as collateral.
- Inventory financing: You can turn to this funding option to buy food for your restaurant. Inventory financing can come in the form of a term loan or a business line of credit.
- Business credit cards: You can use business credit cards to fund your small restaurant purchases. Though your line of credit may be lower than you’d get with a loan, it’s a solid option for recurring expenses, and you’ll be able to earn rewards, such as cash back, on your purchases. If you have strong credit, a business credit card can offer competitive APR between 12% and 22%.
NerdWallet has created a round-up of small-business loans to meet your needs and goals. We gauged factors including lender trustworthiness, market scope and customer experience, and arranged the lenders by categories that include your revenue and how long you’ve been in business.
Last updated on September 20, 2021
To recap our selections...
Restaurant Loans for Small Businesses in 2022
- SBA 7(a) loan: Best for Restaurant loans for expansions or large expenses
- OnDeck - Online term loan: Best for Restaurant loans for working capital
- Bluevine - Line of credit: Best for Restaurant loans for purchasing inventory
- OnDeck - Line of credit: Best for Restaurant loans for purchasing inventory