Restaurant Financing Options

Home - Restaurant Financing Options
Loans

Restaurant Financing

Accessing business funding shouldn't be hard or time-consuming. GoKapital has developed a simple way to get up to $5,000,000 to cover all your restaurant’s needs. With competitive rates starting at 9% and flexible terms of 6, 12, or 18+ months.

GoKapital only requires 4 months of operations and a minimum monthly average of $20,000 in business revenue.

Restaurant businesses can experience seasonal ups and downs. That’s why many owners rely on our restaurant loans to keep their ventures running all year.

Speak to one of our representatives today by calling 866-257-2973. We can help you gather all the insights to understand your financial situation and goals, and we can suggest the best funding plan for your restaurant.

Types of Restaurant Business Funding:

We offer many types of loan products for restaurants. The kind of financing you can get depends on your financing needs. Here are the most common financing options we have available for restaurant business owners.

Restaurant equipment loans

Restaurant owners understand how expensive acquiring new equipment, repairing or replacing broken restaurant equipment can be, especially baking equipment such as ovens. You can still upgrade your restaurant equipment to the most state-of-the-art equipment through restaurant equipment loans. We can finance up to 100% of the cost of the new equipment. You don’t need collateral when looking for an equipment loan because the equipment itself is collateral. Therefore, you don’t have to put any of your personal assets as collateral.

Unsecured working capital loans

Almost every restaurant at some point will require an unsecured working capital loan. They are short-term loans that assist restaurant owners in taking care of expenses and operating their business smoothly. Working capital loans enable restaurant owners to access fast loans for restaurants that aren’t too huge. The maximum loan amount for such loans is mostly $350,000.

Restaurant loans with bad credit

The loan terms and the interest rate depend on the loan size. Smaller loans usually have higher interest rates and a shorter repayment time as compared to bigger loans. Approval amounts are based mostly on the capacity of repayment (business revenue reflected in bank statements) and the availability of collateral (such as real estate or equipment) to secure the loan. 

Lines of Credit

Restaurant owners can testify on how costly it is to cover food costs. If you need to finance inventory purchases for your restaurant business, consider inventory financing. It can be in different forms: short-term, medium-term, or a line of credit. Inventory financing is for the specific purpose of purchasing stock for your business. 

Small Business Administration (SBA) loans

Restaurant loans are SBA’s largest form of approved business loan. With SBA loans, the government acts as the guarantor by giving assurance for the money restaurants get from SBA. All you have to do as a restaurant owner is to ensure that you have everything ready to make it easy for SBA to invest in your restaurant. Here are things you need to know about the process of applying for SBA loans for your restaurant business:

  • Ensure that you have relevant business experience
  • Prepare your financial documents
  • Check your credit history
  • Develop a business plan

How to apply for a restaurant business loans?

Now that you know the various restaurant loan options we have available, you can now go ahead and apply for the most suitable option. 

The best time to apply for a loan is when you are prepared. You need to ask yourself certain questions before applying for a restaurant loan. Here are some of those important issues.

Why does the restaurant need the money?

  • When does the restaurant need the money?
  • Has the business explored all the available options? 

Consider if your business is ready to apply for the loan

Your restaurant can be successful depending on how you operate it. You can take advantage of our business loans to adopt emerging technological trends like marketing and social media. The variety of financing options could help your business to grow.

Where can I get a business loan for my restaurant?

Restaurant owners have had trouble getting financing for their businesses. Most restaurant businesses fail due to a lack of working capital and cash flow. Clearly, there has to be a solution to the restaurant financing problem to enable restaurant owners to access working capital easily.

The best part is that lending institutions such as Gokapital, are now offering restaurant business loans, which makes business owners obtain financing quickly.

The problems that restaurant owners face today

Maintaining a restaurant can be costly. Sometimes licensing, staff, equipment, and other expenses can add up so quickly. Restaurants require business loans to take care of advertisements and promoting expenses, remodeling expenditures and hiring kitchen staff among others.

Restaurant loans enable restaurants to operate smoothly and stay competitive. It is important for restaurants to consult the lender to ensure that they meet the lending criteria.

How Gokapital can help!

Christian Moreno (CEO): “Having access to working capital is essential for the growth of any small business, and this is especially true for restaurant owners. Opening and maintaining a successful restaurant requires a capital investment – whether it’s financing for the purpose of renovation, expansion, or purchasing a new location. 

Without a doubt, obtaining the right restaurant loan can help grow your business to the next level. Unfortunately, most traditional banking institutions have limited the number of loans made available to the foodservice industry. While it is true that over 60% of restaurants regrettably close within 1 year, many establishments continue to open at an exponential rate.“

GoKapital understands that operating a restaurant is hard, and we believe that applying for a business loan shouldn’t have to be. We provide easy access to a variety of alternative business lending options for entrepreneurs in the restaurant industry, including lines of credit, working capital loans, equipment leasing, and more.

Our simple, on-line process provides funding to restaurant owners quickly and with minimal documentation.

How can I use a restaurant loan?

Purchasing new equipment:

Do you need tables, ovens, furniture, or other types of business equipment? With our equipment loans you can lease or buy the equipment you need. 

Opening a new location:

The weather, neighborhood, floor space available, and physical accessibility to your restaurant will also have an impact on your revenue stream. 

Stock up inventory:

Having more inventory during an anticipated busy season will allow you to benefit from the core strengths that your restaurant already offers.

Cover Operating Expenses:

Having updated and accurate income statement and balance sheets will allow you to analyze areas in which you can best invest working capital to improve the performance of your restaurant business.

Marketing & Advertising:

Your food may be delicious and the location may have an amazing interior, but if clients don’t know about your restaurant, they will miss out on the experience.