How we can help
Our funding program includes a revolving line of credit with fixed terms and payments. Draw for a slow season or a repair, repay, and draw again.
Check if my restaurant qualifies →Key takeaways
- You only pay for what you draw, which makes a line the cheapest way to handle recurring, short-term gaps.
- Set it up when business is good. Lenders approve lines based on recent bank statements.
- Don't use a line to fund long-term projects like a remodel. That's what term loans are for.
Market overview
- Limits
- Roughly $10,000 to $500,000+
- Structure
- Revolving: draw, repay, draw again
- Cost
- Interest on what you use, plus any fees
- Best for
- Seasonality, payroll, repairs, opportunities
Typical market ranges, not offers.
How a restaurant line of credit works
A lender approves a maximum limit, say $100,000. You draw what you need, repay it, and the limit becomes available again. Some lines are traditional revolving lines with interest on the outstanding balance. Others treat each draw as a short fixed-payment loan. Ask which kind you're getting, because the cost works differently.
When restaurants use a line of credit
- Seasonal dips: January and February for many concepts, summer for others
- Payroll timing: covering payroll when a big catering invoice hasn't been paid yet
- Emergency repairs: a dead walk-in or dish machine on a weekend
- Food cost spikes: stocking up when a supplier offers a better price
- Patio season and holiday prep: staffing and inventory ahead of the rush
Illustrative example: Riding out January
A bistro draws $40,000 in early January to cover payroll and rent through its slowest six weeks, then pays it back from February and March sales. At an assumed 14% annual rate, carrying that balance for about two months costs roughly $900, far cheaper than a cash advance and without cutting staff.
Hypothetical scenario for illustration. Numbers are rounded and are not a quote or offer.
Line of credit vs. term loan
Where it works well
- You pay interest only on what you draw
- Available instantly once approved
- Perfect for recurring seasonal swings
Watch out for
- Limits can be cut at renewal if sales drop
- Variable rates can rise
- Easy to over-use for things that should be long-term debt
What you'll need to qualify
- Usually 1+ year in business (some lenders less)
- Steady monthly deposits and few overdrafts
- Fair to good personal credit
- 3–6 months of business bank statements
Need a lump sum instead? See restaurant working capital loans.
Frequently asked questions
Can a restaurant get a line of credit?
What's the difference between a line of credit and a working capital 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.