Restaurant & Bar Business Loans

Grow your restaurant or manage cash flow needs with a low-rate loan.

Easy and fast online approval process.

Loan lengths from 6 to 24 months

Funding up to $5 million

Receive funds in 1-2 business days

Bad credit and no collateral options

Unsecured and secured financing available

Business owners in the restaurant industry — a whopping $1.34 trillion market in the U.S. — surprisingly have difficulty raising capital. Reports from the Small Business Administration (SBA) consistently show a lack of capital as the primary reason restaurants go out of business

This is why it’s important for restaurant owners to seek funding. With restaurant business loans, you’ll have the extra capital to meet daily operating expenses, cash flow gaps, opening new locations, and more.

Follow our guide to learn and compare the best loan options for success in the food and beverage industry.

What Are Restaurant Business Loans?

Restaurant business loans are funding options specifically for restaurant owners. They can help you invest in quality staff, promotion, and more to meet your business goals. With food and beverage being one of the top industries in small business, you’ll want to invest as much into perfecting your restaurant as possible.

Benefits of Restaurant Loans

Having funds for upgrades can set you apart from the competition. A few common reasons restaurant owners use business loans include:

Leasing a new location

The SBA provides dedicated funding for small business applicants. Financing is government backed, which means most lenders consider these loans to be less risky than others. Loan structures are similar to traditional short-term loans, although eligibility factors may differ

Hiring and training new staff

Location is the single most important factor in your restaurant's success. Renting a spot that drives in a flood of restaurant-goers can cost a pretty penny. Wize helps make it a reality.

Promotion and marketing efforts

Successful restaurants don't just rely on repeat customers. They continue their marketing efforts to promote the brand, create a social media presence, hire a publicist, and advertise.

Covering payroll and operating expenses

Use the funds however you need for running your business, including purchasing new kitchen equipment, making renovations and building maintenance, investing in POS system upgrades, and creating cash reserves for slow seasons.

No Collateral Required

Retain complete ownership of your restaurant with an unsecured business loan. There is no collateral needed to get funded.

Lowest Interest Rates

Unlike going to a traditional bank, our network of 75+ lenders competes to offer you the lowest APRs in the industry. Whether you have good or bad credit, your loan adviser will work with you to secure the best APR.

Flexible Payment Options

Get repayment terms tailored to your business needs and existing cash flow. We strive to provide best-in-class terms that fit your goals.

Quick Approval and Funding

Get approved online within minutes of applying and money in the bank in as little as one to two days. Restaurant loans with Wize have the fastest turn around time in the lending industry.

Consolidate Existing Debt

Many restaurant owners have existing loans with high interest rates. Wize can consolidate your debt to lower interest rates and reduce your monthly payments, saving you money and improving cash flow.

6 Best Business Loans for Restaurants and Bars

When you work with Wize, your dedicated lending adviser helps you find financing that fits your business goals. Having funded over 10,000 food service companies, we believe the following funding options work best for restaurant owners.

1. Business Line of Credit for Restaurants

A business line of credit provides working capital. It's a flexible way to get approved for a credit line with low interest rates and is structured similarly to a credit card. You only pay interest on funds you utilize.

Benefits of having a business line of credit:

✓ On-demand funds available to use when needs arise

✓ Only pay interest on money withdrawn from the credit line

✓ Helps improve your credit rating

✓ No prepayment penalties

↳Apply For Business Line of Credit

2. Short-Term Loan for Restaurants

The most common type of loan taken by business owners, a short-term loan is a traditional loan option. You borrow a fixed amount of capital from a lender with a fixed interest rate that is paid over a certain length of time. You get the entire loan amount as a lump sum, such as a merchant cash advance, and it can be used for any type of business expenditure, including renovations.

Benefits of getting a short-term loan:

✓ No collateral is needed to secure the loan

✓ Quick and easy approval

✓ Loan closing within one to two days

✓ Low credit score requirements (we recommend a credit score of at least 550)

↳Apply For Short-Term Loan

3. Equipment Loans for Restaurants

Finance up to 100% of kitchen equipment, furniture, ovens, and decor needed to create a successful restaurant. Equipment financing offers competitive interest rates and requires minimal paperwork, so you can get your new equipment quickly.

Benefits of equipment loans:

✓ The only collateral needed is the purchased equipment

✓ Low APRs

✓ Minimal paperwork

✓ Approval for good or bad credit scores

↳Apply For Equipment Loan

4. SBA Loans for Restaurants

The Small Business Administration (SBA) offers two popular loan options for restaurant owners: SBA 7(a) and Microloans. The SBA backs up to 85% of the total funding amount. While SBA loans offer some of the best interest rates, approved lenders have strict credit score and paperwork requirements. Due to the approval time for an SBA loan, they’re best for owners who are not in immediate need of capital.

Benefits of SBA loans:

✓ Partially backed by the SBA

✓ Low interest rates starting at 5.75%

✓ 5 to 25-year term length

↳Apply For SBA Loan

5. Working Capital

A working capital loan can be a lifeline for your restaurant business during low sale seasons. This type of short-term financing works for any practical need, such as filling cash flow gaps and covering operational costs to help your business grow.

Benefits of Working Capital Loans:

✓ Easy approval process

✓ Quick financing process (24-48 hours)

✓ Lets you keep full ownership of your business

✓ Tax deductions on interest paid

↳Apply For Working Capital Loan

6. Merchant Cash Advance

While technically not a loan, a merchant cash advance (MCA) can also serve as capital for your restaurant needs. With an MCA, you receive a portion of your future sales upfront for a fee. MCAs have more flexible requirements for borrowers, making it easier for business owners with poor credit to get fast funding.

Benefits of Merchant Cash Advances:

✓ No collateral is needed

✓ Quick application process

✓ Approval for average or bad credit scores

✓ Repayment is based on sales

↳ Apply For Merchant Cash Advance

Potential usues for food service business loans

In the food industry, having funds for upgrades can set you apart. Whether it's new seating, better equipment, or growth marketing, the right investments matter. Below is a list of how a food service business loan can make a difference for you.

✓ Food and liquor purchases

✓ Renovations and remodels

✓ POS system upgrades

✓ New kitchen equipment

✓ Kitchen equipment maintenance

✓ Payroll and taxes

✓ Operating expenses

✓ PPE and sanitation supplies

✓ Pandemic relief

✓ Hiring and training of new employees

✓ Advertising and marketing.

✓ Managing unanticipated business expenses.

✓ Debt refinancing

How to Apply for Restaurant Financing

Once you’ve compared lenders and options, the following steps will help you acquire a business loan.

1. Determine Which Loan You Need

You’ll want to determine which type of business loan or financing is a good match for your business goals. Prioritize loans with rates, fees, collateral requirements, and repayment terms that you can meet.

2. Check Your Eligibility

After you know the type of loan you want, make sure you meet their qualifications. Determine your eligibility as a restaurant business following the factors that most influence your loan approval. These include:

✓ Your restaurant’s time in business

✓ Annual revenue

✓ Credit score

A good rule of thumb is to review your personal and business credit score before applying for a loan. This way, you’ll know what lenders see and can ensure they report accurate information.

3. Gather Necessary Documents and Submit Application

Most lenders require the following documents with your loan application:

✓ Business information (lease, certificate, licenses)

✓ Financial statements (balance sheets, profit and loss statements)

✓ Personal and business tax returns

✓ Restaurant business plan

✓ Collateral information

Once you have your documents in order, you’re ready to fill out and submit your loan application. It may take weeks or months to hear back from traditional lenders. Fortunately, online brokers typically approve applications within 12 days and can offer some same-day business loans

Types of businesses we fund

Wize can provide same-day financing to any food and drinks business located in the United States. Here's just a few of them:

✓ Restaurants

✓ Bars

✓ Coffee shops

✓ Nightclubs

✓ Fast food

✓ Franchises

✓ Vending machine businesses

✓ Bakery and pastry shops

✓ Food and beverage manufacturers

✓ Food trucks and mobile kitchens

✓ Delicatessens and sandwich shops

✓ Grocery stores

Quick Funding to Grow Your Restaurant

When working with Wize Funding for a restaurant business loan, our quick online approval and turnaround time gets you funds in 48 hours or less. Our loan advisers work with a network of 75+ lenders to secure you the lowest APR and repayment terms tailored to your business.

Best of all, you don’t need collateral to get funded. You can retain complete ownership of your restaurant with our unsecured business loans

FAQs About Restaurant and Bar Loans

Quick funding is the secret sauce for survival and growth in the food business. Here are frequently asked questions from restaurateurs and food entrepreneurs we've financed.

How do I get a business loan for a new restaurant?

To secure a restaurant business loan, you'll want to determine which type of financing is a good match for your business goals. After you have an idea of the type of loan you want, you're ready to take the next steps and determine your eligibility as a new business. Schedule a call online and talk to an adviser to get the process started. We've worked with new restaurants and startups to get small business owners the restaurant financing options they need at favorable monthly payments.

How has the COVID-19 pandemic affected restaurant and bar loans?

The pandemic made some lenders more cautious about granting loans to restaurants and bars, and many traditional banks may still have stricter approval requirements. Other providers, like online lenders, tend to be less restrictive with restaurant and bar loan eligibility. Our lenders at Clarify can assist you in finding the right loan for your situation.

Is it hard to get a restaurant loan?

No. Many business owners find the funding process for loan products to be fairly straight forward. While traditional bank loans may require financial statements, a business plan, and a drawn-out application process, Wize streamlines the process for borrowers.

Do I need collateral for a restaurant loan?

Some loan types require a personal guarantee, but not all. For example, SBA loans typically require collateral. Fortunately, alternative financing options, like unsecured business loans, do not require any security.