Best Business Loans for Restaurants & Bars

It’s no secret that Restaurants have had a difficult time getting business financing for their businesses over the years. But these are new times. With the growth of new alternative lending sources, restaurants have more access than ever before to get some restaurant business loans.

AdvancePoint Capital has been experienced in the funding of Restaurants for years and can help you access those new alternative business lending products. We understand the difficulties of operating a restaurant and the need for business funding to support it. Our job is to effectively provide the best business funding products to you so you can effectively operate your business.

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The 7 Best Business Loan Options for Restaurant & Bars:


Long-Term Business Loans for Restaurants

Long-Term business loans are always the most desirable as they offer the longest terms to repay, typically from 2 to 7 years. Long- Term loans are a lump sum provided upfront with principal and interest rates that start around 7% with monthly payments. These business loans require high credit standards for established businesses with at least two years in business and a significant amount of paperwork and can take up to a week for approval.

Benefits of Long-Term Business Loans::

  • Low rates starting from 4%
  • Terms from 1 to 7 years
  • Monthly payments

Short Term Business Loans for Restaurants

Short-term business loans are term loans that provide a lump sum of money that is repaid over terms of 6 to 18 months. When approved, you get a fixed amount for a fixed amount you have to pay back. The difference between is the cost, with a fixed payment auto-deducted from your business bank account monthly, bi-weekly, weekly, or in some cases daily out of the business bank account. Limited paperwork is required, and credit requirements are more lenient than that of banks or traditional term loans.

Benefits of Short-Term Loans:

  • Credit accepted from excellent to poor
  • Lower monthly or annual revenue requirements than those of traditional business loans
  • Fast and simple process with the same day to next business day funding

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Business Line of Credit for Restaurants

A business line of credit is a type of small business loan that offers a flexibility feature that a short term loan does not. It works like a credit card in that it is a revolving line of credit and allows you to draw money out and then repay at any time with you only paying principal and interest on your outstanding balance. The product has a credit limit that you cannot exceed and is set at the time of consummation.

Highlights of Business Line of Credit:

  • Ability to draw money at any time
  • Allows borrowers to spend the money, repay it, and spend it again 
  • Principal and interest rates starting at 5%
  • Lower costs and fees than most other business financing products

Equipment Loans for Restaurants

Restaurant kitchens are the core of a business. The equipment in the kitchen is expensive and costly. Equipment financing usually comes in the form of leasing or term loans. The equipment is used as collateral, and decisions are also made based on the credit of the business owner and the health of the business financials.

Benefits of Equipment Financing:

  • Simple application 1-page application
  • Limited financial paperwork
  • Repayment terms from 1 to 5 years
  • Monthly payments

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SBA (Small Business Administration) Loans for Restaurants

An SBA (short for Small Business Administration) loan is administered by the Small Business Administration agency and sets the guidelines that must be followed to ensure the business loan for participating lenders. The SBA works with lenders to provide loans to small businesses and does not lend money directly. An SBA loan provides long-term, fixed interest rate financing at very attractive interest rates and terms. Although popular, the process is a lengthy process with extensive paperwork, may require collateral and high credit standards.

Benefits of Equipment Financing:

  • Interest Rates from 4% to 7%
  • Terms from 1 to 25 years
  • A variety of acceptable business uses of money

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Merchant Cash Advance for Restaurants

Merchant cash advance (also now as Future Receivables Purchase and Sale Agreements) provide an upfront lump sum of money to businesses in exchange for a fixed percentage of the businesses’ future sales. Repayment is typically made daily or weekly. Either an ACH payment auto deducted from a business’s bank account or the percentage is taken out of future credit card sales until the payback obligation is met. Terms are expressed as a future sale, so you are given a fixed amount and then responsible for paying back a greater amount through a fixed percentage of future sales. The difference between the amount given and the amount paid back to complete agreement is your flat cost of money. The estimated time to repay is typically 6 to 18 months, but there are no term limits as the repayment is based on future sales. 

Benefits of Merchant Cash Advances:

  • Flexible repayment terms attached to future sales
  • Provides funds to business owners with Sub Prime Credit
  • Payments fluctuate to future sales controlling the margin of profit

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Business Credit Cards for Restaurants

Business credit cards, the same as personal credit cards, are a revolving line of credit with a credit limit with a minimum monthly payment requirement typically lower than that of a business loan. You are issued a plastic card with an account number that can be used online and in-person for any purchases. You only pay interest based on the current principal.

Benefits of Business Credit Cards:

  • Can be used 24 hours a day, seven days a week 
  • No limitations on use of funds
  • Flexible monthly payments payments 
  • Principal & Interest rates

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Benefits of Restaurant Business Loans

Cash Flow

Operating a restaurant is a complicated venture that has a lot of moving parts to it. There are a variety of issues that can impact the cash flow of the business like seasonality, holidays, location, changes in food trends, and competition. Meeting payroll is not an option as well, so it’s essential to have a business credit facility in place to control the ups and downs of the business and stabilize cash flow.

Business Facility Expansion/Renovations

Restaurants may need upgrades or repairs to the facility, spruce up the interior décor or exterior appearance of the restaurant to maintain or attract customers, and maintain a competitive edge. In some cases, a new concept or for an example outdoor deck may present the need for funding.


The internet has become a must and has added additional costs to restaurants. Having a presence on the internet with various sources such as Google, yelp, and trip advisor as well as maintaining a website and work on search engine optimization, so you remain on the top of google search costs money. Also, additional costs for the growth of 3rd party delivery services (Grub Hub, Door Dash, Uber Eats) can be viewed as advertising costs and can eat into the bottom line. Additionally, more traditional sources like mailers and flyers are also advertising mainstay and costs to operate.

Point of Sale Systems, Software, and Technology Upgrades

The point of sales systems are continuously improving and providing efficiencies to restaurants. Eventual investments in this area are a foregone conclusion, and financing will be needed.

Maintenance and repair of Kitchen Equipment

Equipment financing allows restaurants to repair and/or replace key equipment that is at the core of the business. 
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Types of Restaurants We Serve

    • Restaurants
    • Coffee shops
    • Bars/Lounges
    • Fast Food Restaurants
    • Restaurant Franchises
    • Bakery & Pastry Shop
    • Café’s
    • Pubs
    • Nightclubs
    • Ice Cream/Frozen Yogurt Stores
    • Dessert Shops

Why AdvancePoint Capital?

  • Experience- with Restaurant Industry. We have been funding restaurant businesses for years.
  • Trust-Excellent reviews and feedback from Restaurant Companies 
  • Loan Specialists –Experiences Business funding specialists who know the restaurant industry.
  • No cost, no commitment quotes
  • Products – A Variety of Restaurant Business Loan Products. We don’t just offer what we have; we offer what’s available in the marketplace.

Start to Grow Your Restaurant Business Now!

The fast, convenient and straightforward way to get the money you need for your business – now! Get Your Quote Today by filling out our simple form.

* All loans made by either WebBank, an FDIC-insured Utah industrial bank, or Bank of the Internet Federal Bank, an FDIC-insured federally chartered thrift located in California. In connection with the loans, the Banks' underwriting conditions and terms apply.