Business Loans for Coffee Shops & Cafe's

• Business loans & lines of credit perfect for coffee business operators.
• Streamlined application and affordable terms for your cafe business.

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Business Loans for Cafe's & Coffee Shops

The café or coffee shop industry is highly competitive and requires all facets of the coffee business to run on all cylinders. There are times when business financing is a must for the small business owner and it's important to find the best business loans for your needs.

The first step in the process is identifying the "why" or need. Determine how much, what for and what you can afford before you search for a business loan.

Second, is to evaluate your financial situation, credit worthiness and qualifications.

Third, is choosing the lender or originator to work with to search for the right business loan. Most businesses start with there bank or credit union they do there business banking to see if they offer business loans and/or business lines of credit. If traditional lenders are not an option you should consider online business lenders or business funding brokers who can find you products that you qualify for and meet your need.

Apply and determine what business loan products and terms can be offered to your business. You will need to provide an application to determine credit worthiness, a coffee shop business plan, and financial statements to support business funding. Compare interest rates, repayment terms, and any additional fees or requirements associated with borrowing money.

AdvancePoint Capital offers our online lender network of funding resources that include a variety of business funding options such as a business loan, business line of credit, merchant cash advances, equipment financing, credit card and other alternative loans typically not found at the bank. Take advantage of our network to get the right funding you need through various coffee shop loans we offer.

Get Started Today

Get Started Today

AdvancePoint Capital makes the loan application process a simple, straightforward experience.

What Are Business Loans for Coffee Shops?

Business loans for coffee shops and cafe's can come in many forms. The product selected will depend will depend on credit, your business cash flow, and the business profile. Additionally, your need, such as working capital, purchases, paying expenses, purchasing equipment, business expenses or other business uses will determine what funding option is best.

How do business loans for Coffee Shops work?

Its a pretty simple process to acquire business loans for coffee shops & Cafe's. The first step in the process is identifying the "why" or need. Determine how much, what for and what you can afford before you search for a business loan.

Second, is to evaluate your financial situation, credit worthiness and qualifications.

Third, is choosing the lender or originator to work with to search for the right business loan. Most businesses start with there bank or credit union they do there business banking to see if they offer business loans and/or business lines of credit. If traditional lenders are not an option you should consider online business lenders or business funding brokers who can find you products that you qualify for and meet your need.

Apply and determine what business loan products and terms can be offered to your business. You will need to provide an application to determine credit worthiness, a coffee shop business plan, and financial statements to support business funding. Compare interest rates, repayment terms, and any additional fees or requirements associated with borrowing money.

AdvancePoint Capital offers our online lender network of funding resources that include a variety of business funding options such as a business loan, business line of credit, merchant cash advances, equipment financing, credit card and other alternative loans typically not found at the bank. Take advantage of our network to get the right funding you need through various coffee shop loans we offer.

Business Loans for Cafes and Coffee Shops

Long-Term Business Loans

Long-Term Business Loans for Cafes and Coffee Shops

Long term business loans are a great option for large expansions. Qualifications will be tougher than shorter term options do to the repayment time.

  • A thorough application is required with significant documentation
  • Excellent rates and terms starting at 9%
  • Terms that range from 3 to 10 years with monthly payments
Short-Term Business Loan

Short-Term Small Business Loans for Cafes and Coffee Shops

Short term loans come in handy when a traditional business loan is not an option. Limited documentation is needed. Usually a 1 page application and bank statements is all you need to get pre-approved.

  • Simplified Application process
  • Same day business Funding
  • Fixed rates and terms
Business Line of Credit

Business Line of Credit for Cafes and Coffee Shops

A line of credit is a business financing option that allows you to draw funds when needed. you only pay the interest rate based on outstanding balance so you can save money if you payoff early.

  • Revolving credit facility
  • Simple interest rates starting at 1% per month
  • You don't make payments or accrue interest unless you have an outstanding balance
Equipment Financing

Equipment Financing for Cafes and Coffee Shops

Espresso machines and other equipment can be expensive. Coffee shop owners often turn to equipment loans and/or leases to purchase equipment.

  • Some equipment financing agreements may require a down payment
  • Repayment schedule ranges from a few months to several years
  • Require equipment evaluation for approval as its used as collateral
SBA Loan

Small Business Administration (SBA) Loans for Cafes and Coffee Shops

SBA loans have attractive rates and terms. Qualifications can be tough as strong credit is required but worth the effort if you are looking for an affordable small business loan.

  • Broad application process with signification documentation
  • SBA is the Federal agency that guarantees the loans
  • Terms can be both business term loans and/or credit lines
Merchant Cash Advance

Merchant Cash Advance for Cafes and Coffee Shops

Merchant cash advance is an alternative to traditional loan. Commonly used by small businesses who have a lot of credit card processing and want to repay by the funder taking a set percentage of future credit card processing.

  • Revenue focused business funding. Profit & loss not considered for approval
  • All credit considered starting at 500 FICO
  • Based on a factor rate and not an interest rate
Business Credit Cards

Business Credit Cards for Cafes and Coffee Shops

As a coffee shop owner, credit cards are always a good thing to have available for those quick purchases when you need to borrow money.

  • Credit facility that requires personal guarantee
  • A plastic card is issued for use
  • Interest rates vary with intro rates at 0% up to 29.99%

Benefits of a Coffee Shop Loan for Coffee Shop Owners

A business loan can open doors and provide several benefits to coffee shop owners. Coffee shop financing provides many business owners the opportunity to execute on the business vision and the coffee shop dream. Borrowing money can assist the business in many ways. Furthermore, acquiring a business loan can also help build and establish credit history for the coffee shop, potentially improving its future borrowing capacity and access to favorable terms. Overall, a well-managed business usually has some type of credit facility or business loan to assist in day to day operations. We have compiled the following list of most common coffee shop financing needs.

Working Capital

As the saying goes, cash flow is king, and often necessary to balance revenues and expenses. Working capital loans can help balance the business bank account when when then business's cash flow is at an imbalance do to low revenue periods.

Facility Expansion and Renovations

Coffee shops ambiance is part of the culture in the local coffee shop industry. Creating an environment that is appealing to customers is a must. Customers come for the coffee, they stay because of the atmosphere. Facility expansions and renovations cost money and for many businesses, small business financing is the only option if your are looking to take on such a project.

Advertising & Marketing

You must be engaged with customers through marketing either offline or online. Your website needs to be appealing and functional to compete in the market because you may need to connect to services such as Doordash, uber eats, Grubhub and other delivery services. Your online presence with Google, yelp and trip advisor is necessary for brand awareness and social media is important with Facebook, Instagram, and Tik Tok to remain engaged with customers. Online advertising can be costly and require financing to achieve growth or remain competitive.

Point of Sale Systems, Software, and Technology Upgrades

Point-of-sale (POS) systems for a coffee shop is an important part of the business to manage sales, inventory, and process payments. Pos systems can be expensive and require business funding to purchase the best technology for the job. A modern and efficient POS system can streamline operations, enhance customer experience, and improve transaction efficiency, providing a useful management tool for the coffee shops success.

Purchase of New Coffee Shop Equipment

Equipment for coffee shops can be expensive when buying large fixed assets. Equipment financing can allow coffee shops the opportunity to purchase coffee machines, grinders, refrigerators, ovens, and other equipment necessary for daily operations without depleting capital or cash reserves and put undo stress on cash flow.

Emergency

Most small businesses can have an emergency that can arise that requires business funding and coffee shop's and cafes are not immune to this problem. Having a credit facility available to your business is a great insurance policy for any unexpected issues.

Pro's and Cons for Business Loans for Coffee Shops

Pro's

  • Business funding supports renovations and expansions of coffee shops
  • Business essential purchases that would not be acquired without business financing
  • Access to capital for Coffee shops & Cafes
  • Build credit history and credit profile

Con's

  • Builds debt and additional costs to business
  • Risk of overleveraging business with debt
  • Impacts cash flow with debt payments
  • Risk of default and damaging business credit

How to Apply for a Business Loan for your Coffee Shop or Cafe?

Now that you have discovered the why and understand some of the products available to fund your business its time to apply and see what you qualify for.

  1. Choose a lender or business finance specialist to help you find the best products and terms.
  2. Complete an application providing important information about the business and business owner.
  3. Provide the necessary documentation to secure an approval. Documents required depend on the business funding product you are applying for and can include bank statements, tax returns, profit & loss, balance statements, and other financial documentation as requested.
  4. Receive offers and compare and shop the offers you receive by comparing the product features, rates, terms and conditions.

Resources for Coffee Shops & Cafe's

Idea Cafe Small Business Grant Program - Idea Cafe are passionate about helping out fellow small business owners. Deserving entrepreneurs can apply for small business grants.

Community Banks, Credit Unions, Smaller Local Banks - Its highly recommended that you build strong relationships with your business banking relationship. It may come in very handy when trying to acquire business funding either directly or indirectly through there cooperation to solve problems.

Grants.gov - One of the largest platforms to connect coffee shops & Cafes to grants issued by government agencies.

FedEx Small Business Grant Contest - FedEx offers an annual contest for small business owners which has awarded coffee shops and cafes grants of $15,000 to $50,000.

Alternatives to Business Funding for a Coffee Shop or Cafes

No every situation or business need requires business loans. Its important to consider alternative to adding debt to your business.

  • Credit cards- Believe it or not credit cards is the most used product in business funding. This product is a great supplemental option for quick purchases and to pay expenses.
  • Owners Self Funding- Owners will use personal capital to avoid adding debt to the business.
  • Outside Capital- Capital raises can occur for those cafes looking to give up equity for a significant capital infusion.

Apply For Your AdvancePoint Loan Today!

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Why AdvancePoint Capital?

Why AdvancePoint Capital?

Experience – We’re familiar with the coffee industry and have been funding coffee shops and cafes for years. 

Trust – Excellent reviews and feedback from coffee shop small business owners. 

Loan Specialists – Experienced business funding specialists who know the coffee shop industry and can help you make good business decisions. 

No Obligation – No cost, no commitment quotes for your coffee shop or cafe. 

Products – A variety of business loan products that other lenders just don't have. We don’t just offer what we have; we deliver what’s available in the marketplace at a competitive interest rate. 

Start to Grow Your Coffee Shop Business Now!

Frequently Asked Questions