- Why restaurant owners often need financing
- The top 9 funding options for restaurants
- How to manage your restaurant’s cash flow once you get funding
- How to choose best-fit funding options for your restaurant
- How to get restaurant business financing
- What to expect when you apply with Credibly
- Fuel your restaurant’s next big move
Running a restaurant takes the right financing to back it up. Learning more about the restaurant funding options available to you makes it possible to act on opportunity, stay agile, and keep your business running smoothly.
| “Every part of your restaurant depends on consistent cash flow,” Credibly Founder Ryan Rosett said. “That’s why knowing how to finance a restaurant—and which option fits your exact needs—is key to staying competitive in a fast-paced industry.”truggle to restock inventory, cover shipping costs, or reinvest in marketing. Too high, and you might not be using your money efficiently.” |
In this blog post, we’ll break down the best restaurant financing options available right now. You’ll learn how each one works, when to use them, and what to consider before applying.
Why restaurant owners often need financing
Running a restaurant takes more than passion—it takes cash. If you’re scaling to a second location or looking to tap into new opportunities, the right funding helps you move fast and stay flexible.
Restaurant owners often use financing to:
- Launch their concept: Whether signing a lease or buying ovens, you need working capital before the doors open. But note that many financing providers may require your operations to have at least six months time in business to be eligible.
- Renovate or expand: Want to upgrade your layout or add more tables? You’ll need capital to make space for more revenue.
- Buy equipment: Whether it’s a new walk-in cooler, or a commercial fryer gear breaks—and replacing it isn’t cheap.
- Cover day-to-day costs: Rent, payroll, and inventory don’t wait for weeks to pass.
- Grow into new channels: Catering, meal kits, consumer packaged goods (CPG)—you need cash to branch out and bring in new streams of income.
- Handle the unexpected: When repairs, utility hikes, or staff turnover hit, having a cash cushion keeps you covered.
The top 9 funding options for restaurants
Knowing how to finance a restaurant is key to turning plans into profits. The right funding can keep your business running smoothly—or help it scale faster than you thought possible.
1. Merchant cash advance (MCA)
Need fast access to capital and process most of your sales by card transactions? This option might be a fit.
MCAs are one way to get financing for a restaurant. With an MCA, you get a lump sum of cash upfront in exchange for a portion of your future sales.
Instead of making fixed payments like a traditional loan, your remittances happen automatically—typically through daily or weekly withdrawals from your bank account. The cost is usually expressed as a factor rate instead of interest.
MCA works well for cashless restaurants or high-volume, card-heavy operations that need working capital fast.
2. Business line of credit
This is a flexible option that works like a credit card—only built for your business.
You’re approved for a set amount of credit and can draw from it as needed. You only pay interest on what you use. This solution can be great for managing short-term expenses, stocking up for busy seasons, or handling unexpected costs.
A line of credit can also help build your business credit score over time. You can choose between secured (backed by collateral) and unsecured (not tied to an asset) depending on how much risk and flexibility you want.
3. Equipment financing
Need to replace a broken fryer or invest in a new walk-in? This option is made for that.
Restaurant equipment can get pricey with ranges costing up to $10,000, and ovens up to $15,000. With equipment financing, you either get the funds to buy what you need or lease it directly through a lender. You’ll pay it back in installments, often with favorable terms because the equipment itself acts as collateral.
Fuel your restaurant’s next big move—fastApply with Credibly and get up to $600,000 in funding, approval in as little as 2 hours, and real support from a U.S.-based expert. |
4. Working capital loan
A working capital loan helps you bridge cash flow gaps, cover day-to-day expenses, and seize opportunities.
Working capital loans are built for short-term business necessities. Whether you’re prepping for a busy season or smoothing out slower months, this type of financing helps you stay focused and in control.
5. SBA loans
Backed by the U.S. government, SBA loans are designed to make funding more accessible for small businesses. Restaurants that qualify can benefit from lower rates, longer terms, and smaller down payments than traditional loans.
The most popular option is the SBA 7(a) loan, which you can use for working capital, equipment, renovations. The downside? It takes time. These loans have a more involved application process, so you’ll need to plan ahead.
6. Crowdfunding
Looking to raise money and generate buzz at the same time? Crowdfunding might be an option.
You can pitch your restaurant concept to the public, offering perks or pre-opening experiences in exchange for support.
To succeed, you’ll need a story that connects with people—and a campaign that stands out. Done right, crowdfunding can give you capital and customers before you even open your doors.
7. Personal savings
The most straightforward option—using your own money.
Personal savings give you freedom to invest as needed, from buildouts to inventory. Just be sure you’re not draining funds needed for personal emergencies or backup plans. If you go this route, keep some cushion for your own financial safety net.
8. Angel investors
These high-net-worth individuals often bring experience, contacts, and strategy with them. In exchange for equity in your restaurant, they may act as advisors or mentors, helping you avoid early missteps.
To attract an angel investor, you’ll need a sharp business plan, a strong growth strategy, and a pitch that shows both passion and profit potential.
9. Venture capital
Venture capital firms usually aim big. They’re looking for restaurant concepts that can scale fast. This could mean expanding into multiple locations or launching a franchise model.
VCs invest more money than angels, but they also expect more control and faster returns. If you’re planning a high-growth model with national or regional potential, this could be a fit.
| Learn more about your financing options: |
How to manage your restaurant’s cash flow once you get funding
Depending on the kind of restaurant you run, profit margins can run anywhere from 6% to 9% for fast food restaurants, and anywhere from 5 to 10% for fine dining restaurants. Whatever your style, keeping an eye on your cash flow is a must.
Here’s how to stay smart with your capital and keep your business financially healthy long after the money hits your account.
- Know where your money’s going: Track every dollar: Incoming sales, outgoing vendor payments,payroll, supplies, repairs. Don’t guess—measure it. A clear picture of your cash flow helps you stay in control and plan ahead.
- Build a cash flow forecast: Use past sales and seasonal trends to estimate what’s coming in and going out. Factor in high-volume months, slow seasons, loan remittance, and recurring costs like payroll and inventory.
- Stay on top of P&L: Don’t wait until year-end to analyze your profit and loss statement. Review it monthly to flag overspending or underperforming items—and course-correct before it cuts into your cash reserves.
- Budget by quarter: Break your year into 90-day goals. Set spending limits. Track progress. Adjust early if numbers shift. Quarterly budgets keep you agile without losing sight of the big picture.
How to choose best-fit funding options for your restaurant
Start with your goals
Before you compare offers, get clear on why you need funding—and what success looks like once you have it.
- How much do you actually need?
Think beyond just opening costs. Factor in renovations, staffing, equipment, and a cash cushion for working capital.
- What can you handle in terms of remittance?
Choose a timeline that won’t strain your monthly cash flow.
- How will this affect your budget?
Financing should support your growth—not stress your margins. Build remittances into your operating costs and plan accordingly.
Weigh your options carefully
Once your goals are locked in, stack your financing choices against the realities of your business.
- Collateral
Will you need to secure the funding with business assets—or personal ones? Make sure you’re prepared to back what you borrow.
- Risk vs. reward
At the end of the day, only take on what your business can realistically manage. Funding should help you grow—not push you into a corner.
How to get restaurant business financing
The U.S. restaurant industry surpassed $1 trillion in sales in 2024, which is a first for the industry. As you tap into this growth potential, keep in mind: Securing financing takes planning, preparation, and the right approach. Here’s how to position yourself for success and get the capital you need.
1. Build a business plan that sells your vision
Lenders and investors want to know their money’s going toward something real. Your business plan should make that clear—fast.
Break down your concept, show your target market, and back it all up with detailed financial projections. Include how you’ll stand out in a crowded space and what return they can expect.
2. Grow your network
Connections open doors. Get to know people in the restaurant space—chefs, suppliers, bankers, real estate agents, even other operators. These relationships often lead to insights, referrals, or direct access to financing opportunities.
3. Prep your financials
Financing providers will want to see your numbers. Gather everything ahead of time—personal and business tax returns, credit reports, income statements, bank records, and anything else that proves you can manage the money.
4. Send in your application
Once you’ve nailed down the right option and have your paperwork ready, fill out and submit your application. Be honest, be thorough, and be ready to answer questions quickly.
What to expect when you apply with Credibly
At Credibly, we’ve built a faster, easier way to access business funding—without the red tape that slows you down.
Just a simple, straightforward application that connects you to the capital you need to move forward. Once you apply, we’ll get you an answer in as fast as 2 hours.
To get started, you’ll just need to submit an application and the following documentation:
- The past 3-4 months of business bank statements
- Government-issued ID
Take the next step today.
