How we can help
Our core program offers $5,000 to $1.5 million with fixed repayment terms up to 36 months and fixed payments that don't rise when your sales do. Same-day approval with 3 bank statements; funding in 3–7 business days.
Check if my restaurant qualifies →Key takeaways
- Match the loan to the need: short money for short needs (payroll, a slow month), long money for long assets (a remodel, a second location).
- Restaurants are eligible for SBA loans, which offer the longest terms, but they take the longest to close.
- Fixed-payment term loans are usually a better deal than merchant cash advances, which take a cut of every card sale.
Market overview
- Amounts
- $5,000 to $5 million+ depending on type
- Terms
- 6 months to 25 years
- Fastest
- Term loans and equipment financing (days)
- Lowest cost
- SBA and bank loans (weeks to months)
- Most expensive
- Merchant cash advances
Typical market ranges, not offers.
Restaurant business loan types compared
| Loan type | Typical amount | Typical term | Speed | Best for |
|---|---|---|---|---|
| SBA 7(a) | Up to $5M | Up to 10 yrs (25 with real estate) | Weeks–months | Startups, acquisitions, big projects |
| Bank term loan | $50K–$5M | 3–10 yrs | Weeks | Established, profitable restaurants |
| Short-term business loan | $5K–$1.5M | 6–36 months | Days | Equipment, remodels, working capital |
| Line of credit | $10K–$500K | Revolving | Days–weeks | Seasonal dips, payroll gaps |
| Equipment financing | $5K–$500K+ | 2–7 yrs | Days | Kitchen and dining equipment |
| Merchant cash advance | $5K–$500K | 3–12 months | 1–3 days | True emergencies only |
How to choose the right restaurant loan
Start with the question lenders will ask: how will this money make or save more than it costs? Then match the term to how long the money takes to pay off:
| If you need to… | Look at |
|---|---|
| Cover payroll or rent through a slow month | Line of credit or working capital |
| Replace a broken walk-in or oven | Equipment financing |
| Remodel the dining room or add a patio | Renovation financing or SBA |
| Open a second location | SBA 7(a) or a term loan |
| Open your first restaurant | Startup loans (usually SBA) |
| Buy an existing restaurant | Acquisition loans |
| Open or expand a franchise | Franchise financing |
What lenders look at for restaurant loans
| Factor | Why it matters for restaurants |
|---|---|
| Monthly sales and deposits | Shows cash flow. Many fast-funding lenders want around $15,000–$20,000+ per month |
| Time in business | Restaurants that have survived their first year or two are lower risk to lenders |
| Credit score | Fast lenders may go into the high 500s; banks and SBA usually want the mid-600s or higher |
| Prime cost | Food + labor costs. If it's well above about 60%–65% of sales, lenders worry about margins |
| Existing debt | Stacked cash advances are a red flag. Refinancing them may come first |
| Lease | Lenders want your lease (plus options) to run at least as long as the loan |
Are restaurants high risk to lenders?
Restaurants have a reputation for failing, but the famous “90% fail in the first year” claim is a myth. An Ohio State University study (Parsa et al.) found about 26% of independent restaurants closed or changed ownership in their first year, and later research using Census data found even lower first-year failure rates. Still, many banks treat restaurants cautiously, which is why lenders that specialize in restaurants, and the SBA program, matter so much.
Restaurant loans for new vs. established restaurants
Established restaurants (roughly a year or more of deposits) have the most choices: fast fixed-payment term loans, lines of credit, equipment financing, and bank or SBA loans for bigger projects. Your bank statements and time in business carry most of the weight.
New restaurants generally rely on SBA 7(a) startup loans, equipment financing secured by the kitchen, owner equity, and sometimes investors. Read restaurant startup loans, and prepare a lender-ready business plan.
How to compare restaurant loan offers
- Total cost of capital: compare the total dollars repaid, not just the monthly payment or a factor rate.
- Payment frequency: monthly fixed payments are easier to plan around than daily or weekly debits.
- Prepayment terms: can you pay early, and do you save interest if you do?
- Collateral and guarantees: blanket liens can make future financing harder.
- Speed vs. price: the fastest money is usually the most expensive. Use it for short needs only.
Want to compare lenders side by side? See restaurant lenders compared, or run your own payment math.
What restaurant owners use loans for
- Replacing or adding kitchen equipment
- Covering payroll and food costs through slow seasons
- Remodels, patios, and franchise-required reimages
- Opening a second location or adding catering
- Paying off expensive merchant cash advances
- Buying out a partner or buying an existing restaurant
How fast can you get a restaurant loan?
Speed depends on the loan type. Fixed-payment term loans and equipment financing for operating restaurants can fund in days; for our core program, approval can come the same day once we have 3 bank statements, and funding typically takes 3–7 business days. Bank and SBA loans usually take weeks to months because they require tax returns, projections, and more documentation. Timing is never guaranteed.
Mistakes to avoid when borrowing
- Using short-term money for a long-term project, which creates a payment the restaurant can’t sustain
- Stacking multiple cash advances
- Borrowing without a clear plan for how the money pays for itself
- Signing a loan that runs longer than your lease
- Comparing only monthly payments instead of total cost
About numbers on this page
Dollar figures, percentages, and timelines here are illustrative examples or commonly cited ranges, not promises or offers. Your costs, sales, profit, approval, rate, and funding speed depend on your business, location, credit, and the lender’s underwriting. Not all applicants qualify.
See which restaurant loan fits. A 2-minute form, with no effect on your credit.
Get my optionsFrequently asked questions
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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.