Business Loans for Bakeries

Find the Best Business Loan for Bakeries at AdvancePoint Capital. Compare, Choose and Save.

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Get the Best Bake Shop Business Loan Options

According to the American Bakers Association, the baking industry generates more than $154 billion in economic activity annually and employs almost 800,000 highly skilled people. Who doesn’t like baked foods or pastries? The fact remains, it’s challenging for bakery owners to get business loans from traditional sources. Whether you are a member of a credit union or a national bank customer, it is tough to get many types of bakery funding or bank loans in general. Alternative business financing sources have stepped up and bakery owners have more choices in the past when trying to get small business loans.

 A traditional bank sees bakeries as risky businesses. Traditional banks won’t give loans out to just any small business. Traditional banks will likely require an excellent credit score from bakery owners, strong financial statements, and collateral from your business. Some could even ask you about your relevant hospitality experiences as well. That’s where AdvancePoint Capital can help.

 AdvancePoint Capital’s goal is to help small business owners. We have lots of experience providing bakery loans for bakeries for years and can allow you access to the best alternative business lending products through our network of lenders and financing options. We have no minimum credit score requirements, although the better the credit score, the more options we can offer.

 We understand the difficulties of operating a bakery and the need for financing. We are laser-focused on providing the best business funding products to you, the small business owner, so you can effectively operate your business. Whether you want to add customers, purchase equipment, expand operations improve counter service, need some working capital, or have any other business needs — we can find the best bakery loan for your business.

Small Business Owners in the Bakery Industry that we Serve

We help a wide range of bakery businesses acquire loans for their shops including:

  • Commercial/Wholesale Baked Goods
  • Retail Bakeries
  • Bakery Cafes
  • Pastries and Baked Goods Shops
  • Home Bakeries
  • Bakery Schools
Get Started Today

Get Started Today

AdvancePoint Capital makes the loan application process a simple, straightforward experience. Check out our great customer service!

8 Best Bakery Business Loan Options (October 2023)

Long-Term Small Business Loans

Long-Term Small Business Loans for Bakeries

Long-term loans are used for bakery businesses that want to grow, need to expand, and have a high price tag for that expansion. Long-term loans spread the cost out over the years so payments are affordable. Interest rates are also attractive.

Short-Term Business Loan

Short-Term Small Business Loans for Bakeries

A short-term loan comes in handy when a traditional loan is not an option due to credit or other reasons. Short-term loans are more tolerant of credit and reduced documentation is necessary for funding making it a popular alternative.

Equipment Line of Credit

Bakery Equipment Line of Credit

A line of credit is a great option when small businesses like bakeries want access to a line that they can draw money when needed and only pay interest on the outstanding balances.

SBA Loan

Small Business Administration (SBA) Loans for Bakeries

SBA loans are popular with bakery business owners because they have attractive interest rates and terms. SBA loans are backed by the Small Business Administration and funded by SBA-approved lenders. Be prepared for the SBA loan application process and supply a lot of documentation when applying as the SBA process is lengthy, but don't worry we are here to make it easy.

Merchant Cash Advance

Merchant Cash Advance for Bakeries

Merchant cash advances are a business financing alternative to a small business loan. A merchant cash advance is not a loan, but an advance of future sales of the business based on the business's annual revenue. The merchant cash advance is paid back by a set fixed percentage of future credit card processing. A great working capital loan alternative.

Invoice Financing

Invoice Financing for Bakeries

Invoice financing, also known as invoice factoring, is a great product for businesses that invoice their clients monthly and would like to get an advance off of the unpaid invoice before the net terms of 15, 30, 45, or 60 days.

Equipment Financing

Bakery Shop Equipment Financing

The bakery industry relies on equipment for its baked goods and operations. Equipment financing uses the equipment as collateral so that the business can get favorable financing terms.

Business Credit Cards

Business Credit Cards for Bakeries

Credit cards are an additional bakery financing tool that compliments the needs of the business. Credit cards are commonly used by many small business owners who have the need to make quick purchases or pay some bills.

Benefits of Acquiring Bakery Loans

Bakeries have several needs that would benefit from acquiring business financing. Some needs are necessary to compete in the market and other needs are required for the survival of the business. Many needs can be costly and business financing can defray the costs so the business does not suffer from a cash reserves perspective.

In some cases, business financing is the only option because the business lacks the capital to move forward.

Lets look at the following benefits of acquiring financing for a bakery business:

Working Capital

The day to day operations of a bakery can be drain on finances sometimes. Whether its payroll, or making repairs to equipment, or just low on cash flow due to slow sales, working capital loans can come in handy to smooth out the cash flow of the business.

Business Facility Expansion/Renovations

Financing is very common for bakeries that are looking to expand or renovate because sales are growing and they need to accommodate the growth. An expansion can not only expand capabilities but also improve the efficiencies of a bakery increasing revenue and profits. The reality is that expansions are costly, whether it involves construction or moving to a new location, the costs are high. In fact, without business financing, many bakeries would not have the capital to expand.

Point of Sale Systems, Software, and Technology Upgrades

A point of sale (POS) system tracks the sales, inventory and provides reporting for bakeries to properly manage the business. The technology is advancing rapidly, with innovative POS systems that can improve operational processes and efficiencies. The systems and upgrades can be costly and having access to business financing can help purchase the necessary equipment and services to take the bakery to the next level.


Advertising is a must for bakeries looking to expand and grow. A bakery needs to maintain its presence on Google, yelp, trip advisor and other online services. Engagement with social media sites like Facebook, Instagram, and TikTok can get your brand out there and create brand awareness with potential customers. Bakeries also still use other advertising methods such as print and mailers to reach customers with promotions and discounts. One thing is clear, advertising costs money and financing may be an option.

Maintenance and Repair of Bakery Equipment

Maintenance of a bakery as well as equipment repairs can be costly. Have a business funding solution like a business line of credit can come in handy to cover the costs.

Purchase of New Bakery Shop Equipment

Equipment is an essential part of a bakery. The business simply can not function without equipment. The equipment can be costly, so many bakeries turn to equipment financing to acquire the best equipment available for bakery operations so you can improve efficiencies and avoid business interruption do to unexpected repairs.

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Requirements to Check Before Applying for a Bakery Loan

Qualifications and requirements are an important part of what products and terms you can be offered to financing your business. Lenders are looking to evaluate credit worthiness by looking at the business profile, personal profile of the business owner, credit, and financial documents to determine eligibility.

1. How does time in business of a bakery impact terms for getting a business loan?

The longer time in business you own the bakery, the less the risk to the lender. Based on the data, the longer you are in business the less likelihood of default. This experience shows proven track record of managing the businesses finances.

2. How does your bakery business handle cash flow impact business loan approval?

Cash flow management plays an important role in the lenders ability to determine your ability to manage the finances of the bakery. The business operating bank account can tell a story to lenders of how a bakery manages the debits, credits and daily balances. The better your cash flow management the more options and better terms can be offered.

3. How does my credit impact getting a business loan for the bakery?

Both personal credit of the business owner and the business credit plays a significant role in credit worthiness decisions. Lenders access this information to determine what products you qualify for and what rate and terms you with be offered. Better the credit the better the options and offers will be.

Why AdvancePoint Capital?

Why AdvancePoint Capital?

  • Experience: Advancepoint has over 10 years experience working with bakeries to secure business financing.
  • Business Finance Specialists: At advancepoint you get a dedicated specialist who have the experience and knowledge in searching for the best business funding options and terms that meet the needs of the client.
  • Products: Advancepoint Capital's lenders network is comprised of a variety of products such as business term loan, business line of credit, business cash advance, equipment financing, invoice factoring, accounts receivable financing as well as other alternatives.
  • Streamlined application process: Our application process for bakeries consists of an application and document requests, followed by a pre-qualification and terms to consider within 3 to 6 business hours, with funding sometimes in as little as 1 day.
  • Customer Service: Responsiveness is what advancepoint is known for. Your emails and phone calls will always be responded to in an expeditious manner. There is no question or concern that we won't address timely and accurately. We are here to address your needs.

Frequently Asked Questions

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