Compare restaurant loans

There’s a lot of stress in the kitchen: heat, a large crowd, special or time sensitive orders — and all of it can be demanding. Luckily, that demand can help you prepare for owning your own business. Running a restaurant can take big investments of time and money, and a great deal of dedication on top of that.

Because the right financing can potentially make or break your new venture, you’ll want to carefully consider your needs and the financing options available to you. Our guide takes you through your options and how to compare them, plus learn tips from professionals in your field.

SharpShooter Funding Business Loan

• Min. Loan Amount: $500
• Max. Loan Amount: $500,000
• Interest Rate: Fee based, Prime pricing starting at 9.00%
• Requirements: Annual business revenue of $120,000

• Free online loan quote
• Borrow $500,000+
• Quick application process

SharpShooter Funding Business Loan

SharpShooter Funding offers loans up to $500,000 for small business owners who have been business for at least 2 years and can show a minimum of $10,000 in monthly deposits.

• Min. Loan Amount: $500
• Max. Loan Amount: $500,000
• Interest Rate: Fee based, Prime pricing starting at 9.00%
• Requirements: Annual business revenue of $120,000

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What loan options are available for restaurants?

Here’s a breakdown of the main financing options you can choose from:

• Business term loans. General business loans provided by banks, other financial institutions and online lenders can help you with large one-time expenses like kitchen and front of house equipment. While you’ll need to meet the eligibility requirements, if approved, you might be able to borrow up to $1.25 million.
• Canada Small Business Financing Program (CSBFP) Loan. Find competitive rates with a Government-backed loan designed to help startups and small businesses that might struggle to qualify for other financing. These loans are at least 75% backed by the Government and are provided by banks and other financial institutions. Your business will need to bring in an annual revenue of less than $10 million to qualify and you’ll have to use the financing for specific purposes like purchasing equipment, land or buildings, or doing renovations on your property.
• Equipment financing. New and used equipment can sometimes be financed directly in-house with the provider you’re buying it from. If not, you can look into a business loan specifically designed for purchasing equipment.
• Inventory financing. Designed specifically for obtaining supplies and inventory, the types of financing offered range from short term loans to lines of credit.
• Invoice factoring. If inventory isn’t a problem but you need working capital, consider invoice factoring. This is where you sell account receivables to a third-party at a discount.

Business loan options to consider for your restaurant

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Name	Product	Interest Rate	Min. Loan Amount	Max. Loan Amount	Loan Term	Minimum Revenue	Min. Credit Score	Filter Values
SharpShooter Funding Business Loan		Fee based, Prime pricing starting at 9.00%	$500	$500,000	6 months - 5 years	$10,000 /month	670		SharpShooter Funding offers loans up to $500,000 for small business owners who have been business for at least 2 years and can show a minimum of $10,000 in monthly deposits.	Go to site More Info	Compare	loading Fetching your data...
Loans Canada Business Loan		Prime Pricing from 9.00%, Long term financing from Prime + 2.00%	$2,000	$350,000	3 months - 5 years	$4,166 /month	410		Loans Canada connects Canadian small business owners to lenders offering up to $350,000. Borrowers must have been in business for at least 100 days, have a credit score of 410+ and show a minimum of $4,166 in monthly deposits ($50,000/year).	Go to site More Info	Compare	loading Fetching your data...
OnDeck Business Loan		8.00% – 29.00%	$5,000	$300,000	6 - 18 months	$10,000 /month	600		OnDeck offers loans up to $300,000 for small business owners working in approved industries who have been in business for at least 6 months with a minimum monthly revenue of $10,000.	Go to site More Info	Compare	loading Fetching your data...

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How do I compare my financing options?

With so many types of financing, it can be overwhelming to compare your options. Here are a few elements you can focus on when making a decision on which type of financing to apply for:

• Eligibility criteria. The age of your restaurant, annual revenue and your personal credit score, among other factors, can all affect your eligibility.
• Loan type. When you’re looking at financing, you may want to consider how the different merits of each type could fit your needs. A traditional loan will likely have stricter qualifications than a short term loan will, but the rates will be much higher with the latter. Other types of financing for specific needs, like equipment or inventory, may not provide you with enough working capital.
• Loan amount. Be sure the lender’s maximum amount offered covers what you require. But avoid applying for too much — taking on more than you need can lead to paying unnecessary interest charges and ultimately throw you into a cycle of debt you can’t get out of.
• Loan term. With a longer loan term comes lower monthly payments, but a higher overall cost due to more payments towards interest.
• Costs. The interest rate and any fees charged can help you determine how much your business loan will cost. If the lender provides an annual percentage rate (APR), this can give you a strong idea of how much you’ll pay on top of the loan principal. Keep in mind that the APR doesn’t include penalty fees for things like late or missed payments, but it does include other fees like administration fees, as well as the interest rate.

What do I need to apply?

Generally, you’ll need to provide the following:

• A detailed business plan.
• A statement of your financial needs.
• Your business and/or personal bank account statements.
• Profit and loss statements.
• Your business ownership documents.

Bottom line

A great restaurant is about making an unforgettable dining experience. Keep your goal in mind to give yourself some perspective. Just as each guest’s time at your restaurant is unique, so are your restaurant’s needs. If you’re looking for financing, take your time to find the right type of loan for your needs.

Frequently asked questions

• Can I get financing for my restaurant if it's a startup?

  Potentially, yes. It may be more difficult to secure a traditional business loan, but you have other startup financing options. Finding a partner or an investor, running a crowdfunding campaign or applying for a loan through the Canada Small Business Financing Program (CSBFP) could potentially get you funding as well.

• How long will it take to get financed?

  It can take anywhere from a couple of business days to over a month to receive funding. Timing varies by the type of financing you’re seeking, the lender you’re applying with and the amount you’re borrowing. Factors like missing required information on the application will slow down funding.

• Can I get a new loan or line of credit if I already have one?

  Potentially, yes. Whether you can or not depends on the lender you’re borrowing from and the lender you’re applying with for the next one. Keep in mind that just because you’ve successfully borrowed from a lender before, doesn’t necessarily mean you’ll be able to again. You may also want to evaluate if you actually need a second financing option before getting into more debt. Avoiding extra financing means avoiding extra interest payments.