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 restaurant loans | $5,000,000 | 650 | with Fundera by NerdWallet |
Triton Capital - Equipment financing with Fundera by NerdWallet | 4.0/5 Best for Restaurant equipment loans | $250,000 | 600 | with Fundera by NerdWallet |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Restaurant loans for bad credit | $1,400,000 | 500 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Fast restaurant loans | $250,000 | 625 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Business loans for established restaurants | $500,000 | 660 | with Fundera by NerdWallet |
Fundbox - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Startup restaurant business loans | $150,000 | 600 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Short-term restaurant loans | $250,000 | 625 | with Fundera by NerdWallet |
Here are 7 restaurant business loans
Best for SBA restaurant loans
Best for Restaurant equipment loans
Best for Restaurant loans for bad credit
Best for Fast restaurant loans
Best for Business loans for established restaurants
Best for Startup restaurant business loans
Best for Short-term restaurant loans
Our pick for
SBA restaurant loans
SBA 7(a) loan
Max Loan Amount
$5,000,000
Min. credit score
650
Est. APR
10.25-12.75%
7(a) program participants include specialized lenders like Live Oak Bank and big-name traditional banks like Wells Fargo.
Lowest interest rate
Max loan
$5,000,000
Min. Credit score
650
Apr range
10.25-12.75%
Our pick for
Restaurant equipment loans
Triton Capital - Equipment financing
4.0
NerdWallet rating with Fundera by NerdWallet
Max Loan Amount
$250,000
Min. credit score
600
Est. APR
5.99-35.00%
Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.
4.0
NerdWallet rating Max loan
$250,000
Min. Credit score
600
Apr range
5.99-35.00%
with Fundera by NerdWallet
Our pick for
Restaurant loans for bad credit
Fora Financial - Online term loan
Max Loan Amount
$1,400,000
Min. credit score
500
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.
Max loan
$1,400,000
Min. Credit score
500
Our pick for
Fast restaurant loans
Bluevine - Line of credit
Max Loan Amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%
Bluevine's line of credit provides fast working capital for short-term borrowing needs.
May fund quickly
Max loan
$250,000
Min. Credit score
625
Apr range
20.00-50.00%
Our pick for
Business loans for established restaurants
Funding Circle - Online term loan
Max Loan Amount
$500,000
Min. credit score
660
Est. APR
5.99-16.49%
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
May fund quickly
Max loan
$500,000
Min. Credit score
660
Apr range
5.99-16.49%
Our pick for
Startup restaurant business loans
Fundbox - Line of credit
Max Loan Amount
$150,000
Min. credit score
600
Est. APR
10.10-79.80%
Fundbox offers a business line of credit to fill a cash-flow gap, and qualifying is easier than with other lenders.
May fund quickly
Max loan
$150,000
Min. Credit score
600
Apr range
10.10-79.80%
Our pick for
Short-term restaurant loans
OnDeck - Online term loan
Max Loan Amount
$250,000
Min. credit score
625
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
Max loan
$250,000
Min. Credit score
625
Apr range
29.90-97.30%
Minimum requirements for a loan
The Nerds are here to help you find the right loans for your business needs.
Credit Score
550 or higher
Annual Revenue
at least $50k
Time in Business
6 months or more
How Much Do You Need?
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.
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.
Bank loans
Bank business loans will typically offer the most competitive interest rates and repayment terms. However, to qualify, you’ll likely need a few years in business, strong credit and solid revenue.
Some banks may also be hesitant to lend to restaurants, as they perceive the food and beverage industry to be risky.
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.
SBA loans
These loans are issued by banks and credit unions, and they are partially guaranteed by the U.S. Small Business Administration. SBA loans tend to have long repayment terms and competitive interest rates.
The most popular type of loan, the SBA 7(a) loan, can be used for a variety of restaurant purposes. Although these loans may be slightly easier to get than bank loans, you’ll still need good credit and strong finances to qualify.
Online term loans
If you can’t qualify for a bank or SBA loan — or you need faster funding — online loans can be a good alternative to finance your restaurant. Online lenders generally have flexible qualifications and some are willing to work with startups or businesses with bad credit.
You may be able to get an online restaurant loan in as little as 24 hours, but interest rates will be higher than traditional loan options. Online loans can be used for a range of needs. Working capital loans, for example, can provide short-term financing to help run your day-to-day restaurant operations.
Asset-based financing
With asset-based financing, you take out a loan to purchase assets, and in turn, those assets serve as collateral on the loan. Restaurant equipment financing, for example, can be used to purchase large items like an oven or dishwasher.
Similarly, inventory financing can be used to buy food or other supplies for your restaurant. These types of funding can be easier to qualify for than traditional business loans because they’re self-collateralized.
Merchant cash advance
With a merchant cash advance, or MCA, you receive an upfront sum of cash and repay it using a percentage of your debit and credit card sales, plus a fee. This type of financing is often popular among restaurants that accept credit card payments.
However, compared to other business loans, MCAs are one of the most expensive funding options, with annual percentage rates — or APRs — that can reach triple digits. You should consider all other options before turning to a merchant cash advance.
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 like cash back on your purchases.
Some credit cards even offer a 0% introductory APR period, where you can carry a balance for a specific amount of time without accruing interest. These cards can be helpful for restaurants that are just starting out.
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 Bluevine or Fundbox 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 will 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.
The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.
Last updated on January 27, 2023
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.