Restaurant Loans

A revolving line of credit can be a good fit for restaurant businesses.

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Weekly Payment Amount*:

$424.00 Apply Now

We’re currently accepting new customer applications. Applying will not impact your credit score.

Applying will not impact your credit score.1

*This business loan calculator assumes a monthly interest rate of 3.3% and a 2% draw fee. Your interest rate and credit limit may vary based on your application. No draw fee in CO, GA, IN, NJ and OK.

Restaurant Business Loans

Restaurant businesses can experience ebbs and flows for a number of reasons. That’s why many restaurants rely on business funding to keep their businesses running at full strength all year round. In addition to working capital to cover ups and downs, restaurant business loans are great for the following uses:

Expansion and
Purchasing Inventory and Equipment
Hiring and Payroll

Types of Restaurant Business Funding

Loans for restaurants can come in many different shapes and sizes. It’s important to understand the different types of business funding when deciding the best funding fit for your business.

Small Business Loans

When people talk about small business loans, what they’re most commonly referring to are term loans — the business receives a lump sum of cash and repays it in fixed or variable amounts over a pre-determined period of time (or “term”). This type of funding Is generally best for established businesses with a track record of success who are looking for larger loans for things like expansion or remodeling.

Equipment Loans and Inventory Financing

While these two funding types are technically different, they’re similar in that you are obtaining a loan specifically for the purpose of purchasing equipment or inventory, and that equipment or inventory is then used to “secure” the loan. That is, if you’re unable to pay back the loan for whatever reason, the equipment or inventory purchased with the money for the loan can be taken by the lender as collateral.

Merchant Cash Advances

A merchant cash advance is when a cash advance provider grants you an advance against your restaurant’s future sales. Your business gets the funding it needs, and you pay it back in the form of a percentage of your business’s daily credit and debit receipts. This can be a good option for restaurants that lack much of a credit history or have less-than-perfect credit, but it comes with high interest that may not make it a good option for long-term funding.

Business Lines of Credit

Lines of credit are a flexible form of restaurant business funding in which a business is approved for an amount of credit they can draw from when necessary, paying interest on the amount that they borrow. The repayment method is also often more flexible for businesses (as you can make a minimum payment or more each payment period rather than pay a fixed amount). This structure allows businesses to borrow money when they need it most and repay when their financial situation is a little more stable.

Applying for a Restaurant Business Loan

Before you apply for any type of restaurant business financing, you’ll want to take a few measures to make sure you’re prepared.

1. Gather Your Financial Documents

Make sure you have documents like bank statements, profit and loss statements, your business and personal tax returns, and a balance sheet handy before you apply.

2. Check Your Credit History and Clean up Your Report

Make sure you review your personal and business credit reports to look for any errors. If there are any, clear them up with the credit bureau before applying for credit. Also be sure you’re making on-time payments and pay off as much debt as possible prior to applying for new forms of financing.

3. Research Your Options

There are many types of funding and many types of lenders. Do enough research to be confident in your odds of approval before applying — multiple applications for credit in a short amount of time can adversely affect your credit, so you’ll want to keep them to minimum.

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Apply for a True Line of Credit™ With Headway Capital

At Headway Capital, we offer a small business line of credit with no hidden fees. You can borrow as much as you need (up to your credit limit) as many times as you need to without having to reapply. Accessing your line of credit is easy — you can log in to your online account at any time to request a draw, and your money will typically be delivered to your bank account within one business day after approval.

Credit Line

Up to

Loan Type

Business line of credit

Repayment Term

12, 18 or 24 months

No Hidden Fees

See our Rates & Terms for details

Payment Frequency

Weekly or monthly

Clear Cost

Clear payment terms, interest does not compound, no penalty for early payoff

Think a line of credit can help your business grow? Check your eligibility today without impacting your credit score!

Apply Now