No Cost or Obligation
Qualifications are less than banks.
Soft credit pull. Checking eligibility will not affect your credit score.
Fast and easy one-page application. It takes less than 5 minutes to complete.
Get approved and funded the same day.
Flexible financing and tailored funding solutions to your unique goals and needs.
12 months in business
$15,000 monthly revenue
500+ FICO score
From the Michelin 3 Stars to the corner food truck and everything in between. From fine dining to the taqueria. There appear to be as many types of restaurant business loan options as there are restaurants.
Our objective is to serve (no pun intended) you with the best options for restaurant businesses.
It’s a world where people, friends, and family work long, draining hours. They enjoy the pressures of a Fortune 500 company while barely breaking even.
Imagine your entire livelihood destroyed by a user named Debbie, who hasn’t been happy with anything a single day in her whole life.
Most people watch five minutes of “Kitchen Nightmares” and decide that the restaurant business isn’t for them.
However, some watch Gordon Ramsay berate restaurateurs until they break down in tears and think, “I want some of that.”
24 Hour Approvals
Most banks and traditional lenders consider the restaurant industry a high-risk industry, which means they are less likely to be approved for loans.
How do you go about getting the money you require?
There are various financing options available for restaurants, including loans, credit cards, and lines of credit. The money could come from a bank, family, friends, investors, or other lending sources.
First, we’ll have you fill out a brief form to learn more about your company’s specific requirements. Next, we ask you to complete the one-page application and provide the last three months of business bank statements.
Experts agree that managing a restaurant is the most demanding aspect of operating a business. To be successful, you need to have a genuine interest in satisfying your clients’ needs by offering them top-notch fare, beverages, and ambiance.
Many restaurant operators find it challenging to maintain regular cash flow due to the competitive nature of the sector. Establishing an excellent relationship with a trustworthy lender who can provide restaurant financing is essential.
To start or purchase a restaurant, you must have a business plan outlining your goals and the strategy for achieving them.
Banks often need a formal business plan when asking for loans. This document can help you outline your strategy for repaying your loan and developing an economically sustainable restaurant.
Take this step to get ahead of the game before looking for financing.
Restaurant owners and their finance teams have a variety of motivations for seeking funding in the first place.
A restaurateur must have some “skin in the game,” or the ability to make an equity investment. You can offer other security (like personal property) as collateral if you don’t have the resources.
To some extent, lenders impact the lending process by determining a borrower’s credit rating. Personal credit scores of owners are often required to be at least 600 by lenders. However, this varies depending on your industry experience and relationship with your lender.
Sunwise Capital, an online lender, offers financing solutions for individuals and businesses that want to improve their financial situation through lower rates, flexible terms, and personalized service.
To help our customers accomplish their business loan acquisition goals, we are here to assist.
To obtain the most favorable terms and rates, we work closely with our clients. Our team of lending specialists will be by your side to answer your questions throughout the procedure. Call 888.456.9223 now to speak with a loan specialist.
When it comes to financing your business, we know how crucial it is to get it done right. We give each of our valued customers the highest respect and care.
Our goal is simple: to build long-term relationships based on trust and honesty. Our minimum requirements include:
In addition to your business plan, you’ll need other documents to apply for an SBA loan. At the time of application, you will need the following documents:
To secure a loan for your restaurant, you need to have all necessary documents available in advance. If you supply more information, it may be easier for the underwriters to process your application.
Before applying for a restaurant loan, you should ask these questions to potential lenders:
Working with Sunwise Capital as a lender has two distinct advantages. First and foremost, getting finance and approval may be more expeditious. The same day we get your paperwork, we can fund your request.
There is less back and forth between you and the lender due to working directly with underwriters.
Sunwise Capital better understands what is required when looking at a loan application.
Bank Loans and Credit Union Loans
Brick-and-mortar loans can be vastly different depending on the credit union, bank, and business. A traditional brick-and-mortar bank working capital loan has several advantages and disadvantages, which we will go over now.
A traditional bank loan from a “real” brick-and-mortar bank:
Applicants must go through a rigorous process – talk about going in a funding circle.
The typical brick-and-mortar, term bank loan application procedure lasts 14-60 days. With a flexible timetable or when you’re seeking funds well in advance of when you need it, this may be the best alternative for you to consider.
To secure the loan, you’ll need to put up some collateral. These assets might be collateral from the business or personal use.
More than half (49%) of small business owners with debt utilize business assets (such as real estate if you own your physical site, equipment, supplies, etc.) to secure their loan.
If you’re going to get money from a bank, you’ll have to put up some collateral or guarantee. You’ll have to choose your level of risk tolerance and whether or not risking your assets or those of your business is worth it to secure less expensive financing.
Long-term loans usually offer convenient repayment terms with monthly payments. Keeping track of a monthly bill with this type of loan is a requirement for this.
More extended repayment periods will increase your cost of capital because bank loans often include compounding interest.
The ability to choose the duration of the loan (typically 3-10 years). Thanks to this latitude, you may adjust the repayment duration to fit your restaurant’s needs.
Influencing the cost of your loan is the term length you select. Banks are more likely to offer you a lower interest rate on a loan if you can pay it off fast rather than over a more extended period.
The longer you wait to make a payment, the more interest you’ll incur and the more money you’ll owe.
SBA 7(a) Loan
If you’re starting a new restaurant, you may be eligible for a loan from the US Small Business Administration (SBA).
Getting a restaurant loan through the SBA is easy because they guarantee small company loans in the event of default.
Because of this, your bank will be more willing to take on the risk of your business. Various financial institutions are providing SBA loans, including banks and credit unions.
The SBA offers a wide variety of competitive loan packages, including the SBA Express loan and a commercial real estate loan.
It’s worth mentioning that you’ll have to put up a large amount of your own money to get the loan.
Fast Business Loans for Restaurants
If your restaurant’s equipment breaks down, sales decline during the slow season, or you’re short on working cash, you’ll need a loan quickly.
Owners of restaurants that require working capital often turn to restaurant financing. It’s essential to look at numerous possibilities for a restaurant’s financing needs before deciding which one best meets them.
It may take weeks to process and approve a restaurant loan through typical banking methods like a company line of credit or a loan through the Small Business Administration. Bank loans, let’s face it, take time.
You need to know what quick restaurant loans are out there if you’re a small business owner and you need a rapid loan for your restaurant business.
Before applying for a restaurant business loan, proprietors of small businesses in the foodservice industry must first determine the purpose of the money. The first step is to calculate what you need and then look at the many loan alternatives available to you.
What are you waiting for?
The most typical fast restaurant business loans are listed here, broken down by their terms, optimal uses, and period to finance from application to funds in your restaurant business bank account.
Short-Term Small Business Restaurant Loans
Short-term business lenders are primarily concerned with the business owner’s credit history and bank statements.
A few hours, not days or weeks, are required to turn out an offer based on an application and business bank data. Processing of most fast business loans is within three to six business hours.
Signing an agreement and waiting for the company lender or funder to undertake financial verifications and final approval can take a few hours up to a full day.
Comparing this to the bank’s standard restaurant business financing alternatives makes this lightning-fast financing.
However, due to the shorter duration and higher interest rates associated with short-term restaurant business loans, entrepreneurs must consider the pros and balance the cons of obtaining one before moving further.
There are fixed expenses, which differ from interest and principal and are frequently paid weekly or even daily, with maturities ranging from six to 18 months. Term loans are what we’re calling this type of financing.
Loan terms are between 6 to 18 months.
This financing product, sometimes known as merchant cash advances, is a contract for future sales purchase receivables. This type of restaurant financing is based on your credit card transactions and doesn’t have a minimum credit score requirement.
There is no fixed payment or definite duration like with a loan. Instead, the restaurant owner receives a lump sum of money upfront, but the repayment is a percentage of the restaurant’s future sales rather than a predetermined payment.
Compared to standard loans and lines of credit, the qualifications are far lower.
Only a one-page application, three months’ bank statements are needed to acquire a quote. This process is much easier than traditional loans, which require more documentation, explanations, and financial statements.
If you’re looking for short-term financing, your credit, bank statements, and monthly transaction volume are all things the funder will consider.
Only hours, not days or weeks, are required to process the offer by the funder. Typical quotation turnaround times are between three and six hours.
The speed to funding is a worthwhile option for restaurant owners.
Faster turnaround times come with higher prices, but flexible repayment options are available because it’s tied to a percentage of future revenue.
The restaurant owner must take into account the cost vs. benefit more thoroughly. Factor rates use fixed fees to calculate the charges, which are distinct from principal and interest. Payments are made weekly or daily, and the maturities range from six to eighteen months.
Cash advances to merchants are complete after the repayment amount (a specified amount) is received in full from the customer. Seasonal eateries might benefit significantly from this offering to maintain a healthy profit margin throughout their slow season.
Sunwise Capital, an alternative lender, can fund your request the same day we receive your application.
This form of restaurant financing is an excellent option for cash flow gaps, emergency cash flow, or when you need extra cash. This unsecured debt offers high approval rates.
Flexible payment terms have a factor rate versus an annual percentage rate (annual interest rate). Expect to make daily payments or weekly payments. The loan amount ranges from $10,000 to $2M.
Business Line of Credit for Restaurants
An open revolving line of credit, a Small Business Line of Credit, allows business owners to draw funds on-demand or purchase goods and services up to a predetermined credit limit. Renewing credit lines on a semi-annual or annual basis is necessary.
Flexibility is the primary advantage of a small business line of credit over a term loan; the product enables a draw of money on demand up to the credit limit. A small business line of credit is not a fixed-term loan.
Best for Bad Credit Restaurants
Bad credit business loans are the best option for restaurants with bad credit, poor credit history, or limited resources. These restaurants can qualify for a loan if they meet specific minimum criteria.
Financing and equipment loans for restaurant equipment are an option for those who need it quickly but don’t have the cash on hand.
Because equipment financing is a loan or lease with a specific purpose, the equipment purchased serves as collateral, making the conditions more favorable than those of other restaurant loans.
Depending on the product, terms might last two to ten years and rely on interest rates or lease factor rates.
Loans from Friends and Family
If you’re short on funds and in a tight spot financially or don’t want to put up any assets as security, you might be able to persuade a family member or acquaintance to lend you money. For those who can’t get the whole loan amount, it may be possible to get a reduced sum instead.
According to their equity in the company, or the amount of business they possess due to their investment, investors will get their percentage ownership when you make distributions. Think Shark Tank.
Your Credit Cards
A personal or corporate credit card can be used as a line of credit for restaurant loans, allowing you to draw money as needed.
It is possible to apply for a credit card with personal (social security number) and corporate credit (EIN).
To avoid damaging your personal credit and the ability to obtain future restaurant business financing, avoid using your credit cards to their maximum limit while operating your restaurant. If possible, secure a business credit card.
To raise money for your restaurant, you can look to crowdfunders and solicit small donations from many individuals over a short period, such as a few months.
Savings and Retirement Accounts
You can utilize your 401(k), IRA, 403(b), or other eligible retirement plans to establish a new business without incurring penalties, upfront taxes, or debt. Small Business Administration (SBA) loans can also benefit from this type of financing.
Sunwise Capital is a leading provider of alternative loans, including restaurant finance, retail finance, industrial finance, medical finance, and financier to the construction and subcontractors.
We provide our clients with flexible funding solutions through our tailored lending solutions.
Sunwise Capital offers a wide range of products, including working capital, equipment leasing, and merchant cash advances. Providing businesses with the financing tools they need to succeed is our mission.