Quick answer: The best restaurant business loan depends on what you need the money for. Term loans work for renovations, expansions and one-time costs; lines of credit cover seasonal slowdowns and payroll; equipment financing pays for kitchen equipment; and SBA loans offer the lowest rates if you can wait several weeks. Restaurants with steady card and bank deposits can often be funded within days by a non-bank lender, even after a bank says no.
Restaurant loan options compared
| Loan type | Best for | Speed | Cost |
|---|---|---|---|
| Term loan | Renovations, second location, patio build-out, catch-up on bills | Same day to a few days | Moderate |
| Line of credit | Slow seasons, payroll, food and liquor inventory | 1–3 days | Pay only on what you draw |
| Equipment financing | Ovens, refrigeration, POS systems, hood systems | A few days | Moderate; equipment is the collateral |
| SBA loan | Buying a restaurant, major build-outs, refinancing | Several weeks | Lowest |
| Bank loan | Established restaurants with strong collateral | Weeks to months | Low, but hard to get |
Why restaurants struggle to get bank loans
Banks often treat restaurants as a higher-risk industry because margins are thin and revenue swings with seasons, weather and local events. Many also want real estate as collateral, which most restaurant owners who lease their space don’t have. Non-bank lenders focus more on your actual deposits, so a busy restaurant with a few years of history can qualify even when a bank won’t lend.
Common ways restaurants use financing
- Remodeling the dining room or kitchen
- Replacing broken refrigeration or cooking equipment
- Opening a second location or adding catering
- Stocking up before the holiday or summer rush
- Covering payroll during a slow month
- Marketing, delivery setup or a new POS system
What restaurant owners need to qualify
At Brookestone Funding, restaurant owners can qualify for $10,000 to $2,000,000 with terms up to 36 months and rates starting at 8% for qualified businesses. Minimums are:
- 2+ years in business
- $30,000+ in monthly revenue
- 600+ credit score
- Recent business bank statements
How to choose the right restaurant loan
- Match the loan to the use. Use a term loan or equipment financing for one-time costs and a line of credit for recurring gaps.
- Size the payment to your slowest month, not your best one.
- Compare the total repayment amount across offers, not just the rate.
- Think about timing. If you can wait several weeks, an SBA loan is usually cheapest. If you need money now, a term loan can fund fast.
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Frequently Asked Questions
Can a restaurant get a business loan with a 600 credit score?
Yes. Brookestone Funding works with restaurant owners who have a 600+ credit score, 2+ years in business and $30,000+ in monthly revenue.
How fast can a restaurant get funded?
Qualified restaurants can often be funded the same day with a term loan, or within 1–3 days with a line of credit, once the application and bank statements are complete.
What is the best loan for restaurant equipment?
Equipment financing is usually the best fit for a specific piece of equipment. For a full remodel that includes equipment, labor and furnishings, a term loan is often simpler.
Are SBA loans good for restaurants?
SBA loans offer the lowest rates and work well for buying a restaurant or large build-outs, but they typically take several weeks and require more paperwork.
Ready to see what your business qualifies for? Brookestone Funding offers business term loans, lines of credit and SBA loans from $10,000 to $2,000,000, with same-day funding available for qualified businesses. Apply in minutes, see our business loan options, or call 212-258-0602.
