How we can help
Our lending partner's published minimum is a 575+ credit score, and it weighs your restaurant's sales and deposits heavily. Below that, a specialist can tell you what it would take.
Check if my restaurant qualifies →Key takeaways
- Some restaurant lenders approve scores in the high 500s when monthly sales are strong and consistent.
- Equipment financing is often easier with fair credit because the equipment secures the loan.
- Clean recent bank statements, with no overdrafts and a steady balance, can matter as much as your score.
Market overview
- Scores considered
- Some programs start around 575
- Key factor
- Steady monthly sales and deposits
- Best options
- Revenue-based term loans, equipment financing
- Avoid
- Stacking multiple cash advances
Typical market ranges, not offers.
What's realistic with fair or bad credit
| Option | Credit flexibility | Notes |
|---|---|---|
| Revenue-based term loan | High | Underwritten mainly on sales and deposits; fixed payments |
| Equipment financing | Moderate–high | The equipment is the collateral; may need a down payment |
| SBA / bank loan | Low | Usually needs recovered credit; past issues can sometimes be explained |
| Merchant cash advance | Highest | Very expensive. Use only as a last resort |
How to improve your odds right now
- Avoid overdrafts and keep a cushion in your account for the 90 days before you apply
- Pay down revolving credit cards below 30% of their limits
- Get current on sales and payroll taxes, or set up a payment plan
- Write a short explanation for past credit problems (medical bills, a divorce, COVID-era closures)
- Don't take another cash advance while you're applying for a loan
Protect yourself
Be wary of anyone who guarantees approval regardless of credit or asks for fees before you have a written offer. Always ask for the total repayment amount and the payment schedule.
Learn more in restaurant working capital loans.
Frequently asked questions
Can I get restaurant equipment financing with bad credit?
What's the minimum credit score for a restaurant loan?
Sources
We cite primary sources: federal agencies, regulations, and official program rules. Rules vary by state and change over time.
General education, not legal, tax, or financial advice. Loan programs, licensing rules, and lender requirements change and vary by state. Disclosures.