Restaurant business loans provide working capital to buy equipment, hire employees, or pay your bills during a slow time. Plenty of funding options exist from direct to alternative lenders. However, your interest rates and term length will vary by loan type, credit score, and revenue. Selecting an online lender can get funds into your account within days, whereas traditional bank lenders may take weeks. We reviewed 30 lenders to determine which ones offered a convenient application process, loans for various use cases, and features to manage your loan. We narrowed our list down by reviewing total costs, customer reviews, and perks, such as discounts for paying your loan off early. Our evaluation turned up eight providers offering the best restaurant business loans. Best Restaurant Business Loans Best Restaurant Business Loans Final Verdict Compare Providers Types of Loans FAQ Methodology Why We Chose It Fora Financial is our top pick as the best overall choice for restaurant business loans because this lender offers restriction-free funds and 24-hour loan approvals combined with responsive customer service. Pros & Cons Pros Early payment discounts No minimum credit score requirement Fast financing Cons Interest rates and loan costs are not advertised Daily or weekly payments if you choose the revenue advance Overview Fora Financial is a direct lender offering working capital for small business owners, including restaurateurs and food truck owners. Its application process is simple, with a one-page application and a quick approval process. With a loan or merchant cash advance from Fora Financial, you can get $5,000 to $1.5 million for use within 72 hours after approval. The lender lets you pre-qualify for funds without affecting your credit score, and the one-page application is straightforward. Both the loan and merchant cash advance comes with no restrictions on use with no collateral required. Fora Financial doesn’t rely solely on your credit score to make a determination. Instead, the lender looks at your restaurant’s revenue and years in business. The minimum requirements for funding are as follows: Fora Financial provides flexible terms, giving you the option to choose a short-term, medium-term, or long-term loan. Short-term loans are up to 12 months. Medium-term loans are from 12 to 36 months. Long-term loans are three to 25 years. Or, if you opt for a merchant cash advance, you pay a percentage of your credit card transactions with no set terms. Unfortunately, Fora Financial does not share information about interest rates or loan fees on their website. To get information on the cost of borrowing from them, you'll have to either begin the application process or contact customer service. Once you’ve paid off at least 60% of your loan, you may qualify for additional funding. Fora Financial has a department dedicated to loan renewals, making it easy to get more cash. Fora Financial generally receives great reviews and responds to positive and negative ones alike. Why We Chose It Since roughly 90% of qualified applications referred to banks by SmartBiz get funded, SmartBiz is our pick as the best for getting a U.S. Small Business Association (SBA) loan. Pros & Cons Pros Quicker process than a conventional SBA loan through a bank Competitive rates with many lender options Helpful customer support when applying for your loan Cons Strict government requirements A minimum of two years in business A personal guarantee and lien against your business are required Overview SmartBiz partners with a network of banks to help you secure a loan through the SBA. Although SBA loans can be complex, the SmartBiz platform simplifies the process and connects you with the right lender for your financial situation. Although SmartBiz specializes in SBA loans, you can also secure bank loans and alternative financing. After a five-minute pre-qualification process, you can select loan options, such as: SmartBiz offers a convenient sliding scale calculator and transparent fee structure, making it easy to see what you’ll pay before applying. Typical terms consist of: SBA loans usually take longer to process, but SmartBiz has optimized the process. Funds can arrive in your account as fast as seven days following approval. You can qualify for a loan if you’ve been in business for two years, earn enough monthly revenue to make payments, and don’t have any recent foreclosures or bankruptcies. You also must have at least a 650 credit score, among other requirements. Why We Chose It Crest Capital allows borrowers to spend less on upfront expenses with no hidden costs and a four-hour turnaround time for equipment financing under $250,000, making it the best for restaurant equipment financing. Pros & Cons Pros Many loan and lease options available Will finance 100% of equipment costs plus soft expenses Fast approval and funding Cons Good credit required Not for startups Loans over $250,000 require more paperwork Overview Since 1989, Crest Capital has helped small to medium-sized businesses secure the equipment, vehicles, or software required to keep their company running. Unlike other lenders, Crest Capital fully funds 100% of your equipment costs plus covers soft fees, such as delivery and installation. As a national lender, Crest Capital offers several types of equipment loans and leases. Plus, you can add an unrestricted working capital loan to any equipment funds. Your options include: You can choose various plans for all of the above options, such as a line of credit, step-up payments, deferred payments, or seasonal payments. You can access an online calculator by inputting your email address or get an instant eligibility check. Requirements and terms consist of: The application process is simple, and the company allows the financing of used or new equipment. Furthermore, you can even purchase from a private party. Why We Chose It Fundbox is the best for surviving a slowdown because it provides a flexible line of credit that you can access when you need it and only pay for what you use. Pros & Cons Pros No origination fees 600 minimum credit score No penalty for early payoff Cons Business lien required Only offers funds up to $150,000 Overview Fundbox has at times offered invoice financing and term loans. However, the company now focuses on lines of credit. If you anticipate needing funds to get through a recession or cover out-of-season expenses, a flexible line of credit from Fundbox can help. When business starts to slow, you may need funds to cover basic expenses until your revenue situation improves. However, you may not know how much money you’ll need and it can be risky to get a lump sum term loan that you can’t pay back. Fundbox offers simple borrower requirements, meaning even if you’re seeing a decrease in business, you can still qualify for a line of credit. Fundbox only requires “[three] months of transaction history in a business checking account.” Once approved, you can draw funds at any time and the money gets transferred into your account as soon as the next business day. You only pay interest on the amount drawn, and each time you pay it off, you have access to the full line of credit again. Fundbox is currently offering lines of credit with terms of 12 or 24 weeks. The 12-week term has an interest rate starting at 4.66%, and the 24-week term has an interest rate starting at 8.99%. The company says that these rates can vary by customer and over time. With no restrictions on funds, you can use the money to survive a downturn and pay your loan off early without prepayment penalties. Why We Chose It ARF Financial allows borrowers to choose from four short-term loan options and receive funds within five days with no collateral required. Pros & Cons Pros Discounts for paying off your loan early Multiple loan options 12- to 36-month loan terms Cons High interest rates Weekly payments Loans based on a percentage of annual revenue Overview ARF Financial is a financial services company offering several unsecured loan options and flexible payment terms. Although ARF Financial lends to several industries, it focuses on food and beverage businesses. The ARF Financial experts work with you to find the terms for your needs. With ARF Financial, you can secure a loan for up to $1 million. The total loan amounts are based on a percentage of your annual sales, and the company works with people who have credit scores of at least 551. Examples of loan amounts include: You may be able to get a loan even if you’ve only been in business for a few months. ARF Financial funds businesses, such as: Choose from loan terms of 12, 18, 24, or 36 months with lower interest rates for shorter loan terms. Interest rates start at 6%. Loan types include: Why We Chose It Even with below-average or poor credit, you can get approved for a loan with Credibly, and same-day funding is possible. Pros & Cons Pros Only need a credit score of 500 to qualify A range of loan options No hidden fees Cons High interest or invoice factor rates for poor credit Daily or weekly payments required Overview Since 2010, Credibly has loaned more than two billion dollars to over 30,000 small to medium-sized enterprises. If your credit score doesn’t qualify you for a traditional loan, Credibly can help you get the money you need. The company works with business owners with scores as low as 500. Most lenders require credit scores of 550 or higher to secure a loan. However, Credibly has minimal borrower requirements, meaning you only need a personal Fair Isaac Corporation (FICO) score of 500 to qualify. Moreover, the company considers the overall health of your business, so it doesn’t rely solely on your credit score. However, a business line of credit requires a credit score of 650 and annual revenue of $240,000. Working capital loans are less stringent. You must be in business for six months and show a three-month average revenue of $15,000. Loan amounts can be up to $400,000, and most business owners get funding the same day. You can choose from different loan types, such as: Credibly charges a factor rate for working capital loans and merchant cash advances, starting at 1.11. Higher credit scores give you more favorable rates. You’ll also pay a one-time loan origination fee of 2.5% of the total loan amount that comes out of your loan balance. As an alternative lender, Credibly offers other options through its partners, such as equipment loans or leases and long-term loans. Why We Chose It With Rapid Finance, you can secure a small business loan and get funds in your account on the same day. Pros & Cons Pros Accepts some lower credit scores Same-day funding Several loan types available Cons Possibly more expensive than other loans No clear rate and fee schedule Three months of income history required Overview Rapid Finance is a financial services company that funds loans and works with other providers to offer several funding types. Although many loans from other providers often take a few days to deliver funds, Rapid Finance can get money into your account within hours of approval. Loan terms, interest rates, and factor rates are based on your credit score, the number of years in business, and monthly sales volume. You can choose from several loan options, such as: All loans offer payments on an automatic daily, weekly, or monthly basis. To apply for a loan, you must have a business banking account, and show three months of income information. Although Rapid Finance doesn’t offer rate information online, it receives high ratings and responds to every review. Why We Chose It ApplePie Capital is a lending network that handles franchise companies exclusively. The provider partners with a group of various lenders, and doesn’t place restrictions on the funds, making the loans best for franchises. Pros & Cons Pros Long-term loans available Offers loans for refinancing and remodeling Financing available for first-time franchisees No personal collateral required Cons Only for franchise companies Personalized rate information with no online fee schedule Overview When ApplePie Capital was founded, it only offered its ApplePie Core loan. However, it now provides equipment financing, SBA loans, conventional funding, and refinancing options. ApplePie features: Since ApplePie works with many different lenders, the rates vary and are dependent on factors, such as what the funds are used for, credit history, and type of loan. The company helps both existing and first time franchise business owners obtain financing. Requirements may be more strict for first timers. When you start your application, you can type in the name of the franchise. If the franchise you want to buy doesn’t come up, you can email them to begin your application. Our top pick for best restaurant business loans is Fora Financial because of its food and beverage industry knowledge, fast funding, and straightforward application process. Moreover, the company considers many factors, such as years in business, to determine your rates and works with you to find the best funding solution. However, if your business is currently experiencing a slowdown or you need funding quickly, Fundbox or Rapid Finance may work better for your needs. Both companies offer relatively fast funding and reasonable repayment terms, with Fundbox allowing you to only pay for what you use. Restaurant business loans can take many forms, and a lending partner can help you decide which option is best for your company. The different types of loans include: Restaurant business loans are funds provided by a direct or alternative lender to companies in the food and beverage industry. Loans cover your working or operating capital needs. You can get money directly deposited into your account, open a line of credit, or use it to pay an equipment vendor. In exchange for a predetermined loan amount, you pay the lender daily, weekly, or monthly payments, including interest on your total loan amount. Restaurant business loans can pay for most expenses, except for refinancing debt or buying property. However, some lenders offer debt refinancing and commercial real estate loans. Use your restaurant business loan to: The credit score you need to get a restaurant loan varies depending on what type of loan you're looking for and the lender. ApplePie Capital recommends a minimum credit score of 700 to get a franchise loan. However, for a regular restaurant or SBA loan, lenders often require a lower score, like SmartBiz which requires a score of 650. Even if you have poor credit, you can sometimes still get a restaurant business loan as long as your credit score is at least 500, though your interest rate will likely be higher. The top two expenses in the restaurant business are food and labor, since good food and quality service are the most important aspects of running a profitable restaurant. The third most expensive aspect varies. For some restaurants that create more complicated dishes, equipment can be a significant expense. For others in a high-cost area, rent may be more expensive. Since restaurants can have significant differences in size, output and location, average overhead costs vary. However, the ideal average overhead percentage remains about the same. The Council of Smaller Enterprises recommends businesses aim for an overhead percentage of 35% or less. To determine the best restaurant business loans, we evaluated 30 direct and alternative lenders. We compared solutions by looking at business and credit requirements, loan types, and the minimum and maximum funding amounts. Furthermore, we examined the funding process, from what documents are required to how long it takes to get funds in your account. We also considered customer ratings and business use cases. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Fora Financial. "Small Business Loans." Fora Financial. "Frequently Asked Questions," Click "What Are the Basic Qualifications for a Revenue Advance or Small Business Loan?" Fora Financial. "Small Business Loans," Click "What Are the Different Types of Term Loans?" Fora Financial. "Small Business Loans." SmartBiz. "SBA Loan Approval." SmartBiz. "Bank Term Loans." SmartBiz. "SBA Loans." SmartBiz. "SBA Use of Funds." Small Business Administration. "SBA Information Notice." SmartBiz. "SBA Loan Rates and Fees." SmartBiz. "SBA Loan Approval." Crest Capital. "Financial Statements. Not Required." Crest Capital. "About Us." Crest Capital. "Financing on Your Terms." Crest Capital. "You Have Questions. We Have Answers." Fundbox. "Get a Business Line of Credit Up to $150K." Fundbox. "Who Is Eligible for Fundbox Financing." ARF Financial. "Lending Process." ARF Financial. "Loan Approvals." ARF Financial. "Business Loan Terms." ARF Financial. "Interest-Only Flex Pay Loan." ARF Financial. "Flex Pay Loans." Crunchbase. "Credibly." Credibly. "Small Business Loans." Credibly. "How to Secure a Business Loan With Bad Credit." Credibly. "Business Loans for Working Capital." Credibly. "Business Loans for Working Capital." Credibly. "Merchant Cash Advance for Small Business." Credibly. "Long-Term Business Loans." Credibly. "Small Business Line of Credit." Rapid Finance. "Small Business Financing Options That Can Benefit Businesses." Rapid Finance. "Small Business Loans for All Your Business Needs." ApplePie Capital. "Finance Your Franchise." ApplePie Capital. "How to Get a Franchise Loan Approved." SmartBiz. "SBA Loan Approval." Council of Smaller Enterprises. "Managing Overhead Costs to Improve Profitability." Related Terms Bonus Depreciation: What It Is and How It Works Bonus depreciation is a tax break that allows businesses to immediately deduct a large percentage of the purchase price of eligible assets. more What Is FUTA? Definition and How to Calculate FUTA Liability The Federal Unemployment Tax Act (FUTA) imposes a payroll tax on businesses that have employees, collecting revenue that funds unemployment benefits. more Schedule K-1 Federal Tax Form: What Is It and Who Is It For? IRS Schedule K-1 is a document used to describe the incomes, losses, and dividends of a business's partners or an S corporation's shareholders. more Media Kit: Meaning, Components, and Examples A media kit is a package of information a company assembles to provide reporters or other interested parties with basic information about itself. more Multiple Employer Plan: Meaning, Overview, Different Types A multiple employer plan (MEP) is a retirement savings plan that covers two or more employers. It enables small companies to offer big-company benefits. more Enterprise Investment Scheme (EIS): Meaning, Qualification The Enterprise Investment Scheme (EIS) is a UK program that helps smaller, riskier companies to raise capital by giving their external shareholders federal tax relief. moreThe Best Restaurant Business Loans of 2024
Compare Personal Loan Rates with Our Partners at Fiona.com
Best Overall : Fora Financial
Best for SBA Loans : SmartBiz
Best for Restaurant Equipment Financing : Crest Capital
Best for Surviving a Slowdown : Fundbox
Best for Short-Term Loans : ARF Financial
Best for Bad Credit : Credibly
Best for Quick Funding : Rapid Finance
Best for Franchises : ApplePie Capital
Final Verdict
Compare the Best Restaurant Business Loans
Company Minimum Credit Score Loan Terms Key Benefits Fora Financial
Best OverallNo minimum Short-term up to 12 months, medium-term 12 to 36 months, long-term 3 to 25 years Restriction-free funds and 24-hour loan approvals SmartBiz
Best for SBA Loans650 10 years or 25 years (commercial real estate) 90% of qualified applicants get an SBA loan Crest Capital
Best for Restaurant Equipment FinancingNot indicated 24 to 84 months Buy new or used equipment from a business or private seller Fundbox
Best for Surviving a Slowdown600 12 or 24 weeks Secure your funds with only three months of invoicing history ARF Financial
Best for Short-Term Loans551 12, 18, 24, or 36 months Discounts for early repayment Credibly
Best for Bad Credit500 6 to 15 months (working capital), 18 to 24 months (long-term) Wide range of loan options Rapid Finance
Best for Quick FundingNot indicated, but fair credit likely accepted 3 to 60 months Same-day funding with many loan options ApplePie Capital
Best for FranchisesNot listed 5 to 10 years Partner with a company dedicated to franchise funding Types of Restaurant Business Loans
Frequently Asked Questions
What Are Restaurant Business Loans?
What Can Restaurants Use Business Loans For?
What Credit Score Do You Need for a Restaurant Loan?
What Are the Top Three Expenses of the Restaurant Business?
What Is the Average Overhead Cost for a Restaurant?
Methodology
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