Up to $5,000,000
10.50% to 14.00%
14% for loans $50,000 or less
13.5% for loans $50,001 to $250,000
12% for loans $250,001 to $350,000
10.5% for loans above $350,000
Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
12.50% to 15.50%
15.5% for loans $25,000 or less
14.5% for loans $25,001 to $50,000
13.5% for loans $50,001 to $250,000
12.5% for loans above $250,000
Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
Up to 300 months
With up to $5,000,000 in financing, an SBA 7(a) loan can help you tackle more significant restaurant expenses like commercial real estate, expansions, equipment or even refinancing business debt.
Huntington National Bank is a Preferred SBA Lender, meaning the bank offers a quick application and review process for SBA loans. It’s also the country’s leading SBA lender by approval rate, making this a trustworthy financing option.
Backed by the U.S. Small Business Administration (SBA), SBA loans come with capped interest rates and extended repayment terms, helping business owners who might struggle qualifying for traditional financing. Having a FICO Score of 680 or higher may increase your chances of approval.
Learn more about Huntington National Bank.
Huntington National Bank does not publicly disclose its loan requirements. However, SBA lenders typically prefer borrowers who meet the following criteria:
$500 to $5,000,000
7.99%
12 to 84 months
Taycor Financial’s flexible eligibility criteria makes it an ideal choice for both newly established businesses and low-credit borrowers. Whether you need to upgrade your Italian pizza oven or invest in a 12-burner cooktop, Taycor may be able to help, offering high loan limits and several repayment options, including deferred and semiannual payments.
Read our full Taycor Financial review.
In order to qualify, you’ll need to meet Taycor Financial’s criteria of:
$5,000 to $250,000
31.30% Minimum APR offered to at least 5% of customers (not the lowest rate offered)
Up to 24 months
If your restaurant needs a quick infusion of cash, OnDeck offers short-term business loans from $5,000 to $250,000, and your loan could be funded as soon as the same day you apply. Although OnDeck doesn’t provide a specific restaurant loan, funds can be used for various expenses, such as upgrading equipment, hiring employees, purchasing inventory and consolidating business debt.
OnDeck states that businesses must have a strong credit profile with a steady cash flow to qualify for the lowest rates. But OnDeck’s rates are on the high side, and you’ll likely need to make daily or weekly loan repayments.
Read our full OnDeck review.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
Up to $250,000
7.80%
Up to 12 months
If you’re looking for flexible restaurant financing, Bluevine’s business line of credit offers revolving funds up to $250,000 with quick funding times and no hidden fees. You’ll only pay interest on what you withdraw and you can use your funds for new equipment, payroll services, marketing campaigns, repairs and more.
While Bluevine is willing to work with borrowers with fair credit, businesses must generate at least $120,000 in annual revenue to qualify.
Read our full Bluevine review.
To qualify for a business line of credit, you’ll need to meet Bluevine’s criteria of:
$25,000 to $600,000
11.00% Credibly’s minimum rate is a 1.11 factor rate. This means you'd repay 11.00%, plus any additional fees, on top of the amount borrowed.
6 to 24 months
If you’re about to open your restaurant and need a last-minute influx of cash, a merchant cash advance (MCA) may provide more flexibility than a traditional business loan. Credibly offers MCAs up to $600,000. Unlike other types of financing, you’ll repay your debt through a percentage of your restaurant’s debit and credit card sales, which may be more manageable than fixed loan payments while you work to get your business off the ground.
With lenient credit score and business history requirements, Credibly’s cash advance can help startups and low-credit borrowers access the capital they need to open or expand their restaurants. However, businesses must earn at least $180,000 in annual revenue to qualify.
Read our full Credibly review.
In order to qualify, you’ll need to meet Credibly’s criteria of:
Up to $150,000
4.66% for 12-week terms 8.99% for 24-week terms
12 to 24 weeks
Fundbox has flexible time in business and annual revenue requirements, making it our top pick for new restaurants. Restaurateurs looking for startup loans with no hidden fees can use Fundbox’s business line of credit to purchase inventory, supplies, equipment and more.
Fundbox offers quick approvals with funds hitting your bank account as soon as the next business day. However, repayment terms are on the short side, with a maximum term of 24 weeks.
Read our full Fundbox review.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
Up to $1,500,000
13.00% Fora’s minimum rate is a 1.13 factor rate. This means you'd repay 13.00%, plus any additional fees, on top of the amount borrowed.
4 to 18 months
If your credit score is making it difficult to qualify for financing elsewhere, you might be happy to learn that Fora Financial offers bad credit restaurant loans to borrowers with scores as low as 570. Once approved, you should receive funds within one to two business days, and you can use the money for most business expenses as needed.
While some lenders charge prepayment penalties on business loans, Fora Financial rewards you for paying off your debt early. Collateral isn’t required, but there is a high origination fee — typically 2.50% of the loan amount. Your business must have an annual revenue of $240,000 or higher to qualify.
Read our full Fora Financial review.
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
$25,000 to $500,000
7.49%
6 to 60 months
iBusiness Funding’s non-SBA term loan offers up to $500,000 with competitive starting rates and lengthy loan terms, making it a solid contender for the best restaurant loan. However, only well-established companies that have been operating for at least two years with a solid credit score will be able to qualify with this online lender.
The company offers dedicated account managers to help you find the right funding solution for your business. Keep in mind that depending on your loan type, iBusiness Funding may require collateral, a lien on your business assets or a personal guarantee to secure your loan.
Read our full iBusiness Funding review.
In order to qualify, you’ll need to meet iBusiness Funding’s criteria of:
It depends on your credit score, cash flow and the age of your business. Restaurants may have a harder time getting funding, as they’re often viewed by lenders as unpredictable and risky. However, many lenders cater to restaurateurs.
Even if you lack a robust personal or business credit score or are just launching your restaurant, there are options. For example, you can try a business loan aimed at startups or start a crowdfunding campaign to jump-start your restaurant.
If you can meet the SBA loan requirements, you can use the funds to cover restaurant-related expenses like purchasing real estate, furniture or equipment, hiring staff, printing menus and more.
Additionally, there are SBA loans for franchises if you want to open a branch of an established restaurant chain. Note that SBA loans aren’t often accessible for startups because some lenders may require at least two to three years of business history to qualify.
Some restaurant business loans require collateral such as equipment, vehicles, inventory, real estate or accounts receivable to reduce lender risk. In addition, they may require a personal guarantee.
If you can’t provide collateral, you could consider an unsecured business loan or a startup loan with no money, but be prepared that these loan types typically come with higher fees and less-flexible repayment terms.
Some lenders offer restaurant loans to borrowers with credit scores as low as 500. However, having a good credit score of 670 or higher can help you qualify for the most competitive offers.
