Best Restaurant Business Loans - Full Overview
Of the 6 restaurant business loan types outlined above, you’ll need to decide which loan is right for you. Here we’ll explain the features of each of these loans in detail to make your choice easier.
Fora Financial offers flexible short-term loans between $5,000 and $500,000 with low rates that are easy to apply for. Until now, Fora Financial has supplied more than $2 billion in working capital solutions to their customers. Over 25,000 unique customers have leaned on Fora to achieve their goals and build their businesses.
As one of the most reliable small business lenders, Fora Financial comes highly recommended by us. They specialize in helping small businesses and loan applications are handled swiftly.
The company aims to continue being a competitive lender with extensive and flexible offerings. They are dedicated to developing fresh ways to serve small businesses for as long as possible in a financial market that’s always changing.
Learn more about Fora Financial in our comprehensive review
Fundbox is an AI-powered financial platform, making quick credit decisions by assessment of business banking history. Fundbox has funded nearly 300,000 businesses since its founding in 2013.
Credit lines are provided to businesses with at least $100,000 in annual revenue that has ideally been in operation for at least six months. Loan advances are payable over either 12 or 24 weeks. Available credit increases as amounts are repaid.
Term loans of up to $150,000 are repayable over 24 or 52 weeks. No origination fee is charged and no prepayment penalty is assessed. Lump sums provided by term loans are available for purchases of equipment, machinery, and real estate as well as inventory purchases.
Read the full Fundbox review for more details.
Credibly makes lending decisions using a data scoring model with a human touch. Businesses applying for loans provide basic information for prequalification. Credibly assesses an applicant’s credit history, business cash flow, and bank statements, among other factors addressed in a simple 10-minute online application.
A team member with Credibly then helps determine the best funding option for meeting short-term needs as well as long-term goals. Longer-term loans of up to $250,000 are available for business expansion, including equipment purchases and adding locations.
Working capital loans of up to $400,000 help businesses meet operational costs, such as payroll and inventory increases. These loans are ideal for seasoned companies that simply need to stabilize cash flow. Credibly also has merchant cash advance financing, which provides a lump sum for a short duration in exchange for a percentage of future credit card revenue.
Read the full Credibly review for more details.
Merchant cash advances are lump sum payments available to borrowers using future credit/debit card sales as repayment. Fast cash with no collateral upfront doesn’t require good credit; however, high-interest rates and daily minimum payments can disrupt cash flow. Requiring only three months in business and a minimum personal credit score of 550, Rapid Finance is our choice for merchant cash advances with funds of up to $500,000 available in 24 hours.
Read the full Rapid Finance review for more details.
Referred to as accounts receivable financing, restaurant owners get a capital advance in exchange for unpaid invoices. Invoice factoring involves selling your outstanding invoices to an invoice factoring company at a discount, while invoice financing requires paying off the advanced capital on unpaid invoices with interest. Lenders finance 85% of the total invoice and the final 15% upon full payment. These loans are easier to get, and freeing up your cash flow is always a win-win situation.
We recommend BlueVine, which will fund up to $1 million to borrowers with a 530 credit score, who have been in business for at least three months, and show an annual revenue of $120,000.
Read more in the full BlueVine review.
National Funding provides a variety of funding solutions for small businesses, including first time borrowers and bad credit situations. Lending specialists communicate with business applicants to tailor financing to specific circumstances. National Funding has provided over $3 billion to more than 50,000 businesses since 1999.
Loans are available to businesses in multiple industries. Equipment financing is provided to entrepreneurs in business for at least six months and credit scores of more than 575.
Funds are also provided for inventory, receivables, updating equipment, expanding facilities, paying vendors, and adding staff. National Funding offers direct loans as well as alternative lending programs, such as merchant cash advance financing. Repayment terms are structured to meet the operational needs of a specific borrower.
Read more in the full National Funding review.