Small Business Funding for Restaurants & Bars

  • Minimum $10K Monthly to qualify.
  • Minimum 2 Years in Business.
  • Funding in as little as 24 Hours!

1. Apply Online

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2. Receive Your Decision

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3. Receive Your Funding!

Receive funds for working capital or new equipment in as little as 24 hrs!

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Restaurant and Bar Business Loans

Restaurants are critical to any town, suburb, or city, as they showcase the area’s culture through food. Some restaurants become draws in their own right, bringing tourists and economic benefits to their location. But restaurants are driven by consumer demand, which can frequently change as people look for the next new thing. To keep your restaurant fresh, you need the capital to change your menu or expand your offerings. As a business owner, you are tasked with managing your cash flow to pay for workers, invest in more effective products and services, and cover other expenses throughout periods of low and high demand.

Business loans for restaurants are vital to making necessary purchases that allow your team to meet your customers’ needs while adapting to changing economic conditions. These restaurant business loans also allow you to expand your business as opportunities arise, allowing more significant sales to grow your market share.

Our team offers financial options geared to the needs of your restaurant. We focus on learning your business’s unique challenges and finding the right financing option to fit those needs. Additionally, we recognize that restaurant business loans can be used to navigate the latest industry trends.

Restaurant and Bar Business Loans

One Simple Application, Multiple Funding Options

Small Business Loans

  • Cover Capital Expenditure
  • Grow Your Business
  • Pay Bills
  • Keep Cash Available
  • Protect Personal Finances

SBA Loan Program

  • SBA 7 (a)
  • SBA 504
  • SBA CAPLines
  • SBA Export Loans
  • SBA Microloans
  • SBA Disaster Loans

Merchant Cash Advance

  • Available Funding in 3 Days
  • Loans from $5K to $500K
  • Repayment as low as 1.25 Factor
  • Flexible Terms

Types of Business Loans for Restaurants

Restaurants are typically small businesses, which means that they frequently need to secure a business loan or capital funding. This funding can be used for a wide range of things, including supporting everyday operations, helping to expand the business, making large purchases of capital equipment, or anything else needed to support the company’s ongoing operations or growth.

When seeking loan options, many factors must be considered, such as the interest rate, fees, and repayment schedule. These factors can vary widely, but understanding the differences between these options can help you make the best financial decision for your restaurant.

Common lending options for restaurants include:

  • Traditional bank loans: When you think of a small business loan, many people tend to think of the traditional bank loan, which can often offer competitive interest rates and repayment terms. However, your company generally needs to have a proven track record of financial success and a solid credit record before a bank will consider offering a loan. Sometimes, restaurants – and especially new restaurants – can have a difficult time securing a bank loan as the industry can be considered risky for many banks.
  • SBA loans: SBA loans are common for many small businesses. They are issued by banks or credit unions but are partially guaranteed by the US Small Business Administration, which removes some of the risk for the lender. These SBA-certified loans tend to have good repayment terms and competitive interest rates. The SBA 7(a) loan option is often used by restaurants for a variety of operational and growth needs. Because these loans can be a bit easier to secure than a traditional bank loan, they may be a great option for many restaurants, but you will still need a good credit record to qualify.
  • Business lines of credit: Small businesses can secure lines of credit from either traditional lenders or online options. Online lenders can have more flexible qualification criteria, but that usually comes with higher interest rates than traditional lenders. Despite this, business lines of credit may be a good option when looking for working capital or to cover an emergency.
  • Merchant cash advances: Merchant cash advances can provide your business with an upfront amount of funding, which is then repaid by taking a percentage of your debit and credit card sales. In addition to this repayment option, this type of lending also usually includes a fee, which can make it a more expensive option than some of the alternatives. However, it’s a good option for many restaurants that don’t have a strong credit history but do have solid credit and debit card transactions. But because they cost more, you will want to be sure that you are using this type of financing very cautiously and only when absolutely necessary.
  • Online term loans: Online term loans are often a good option for newer restaurants or those without a stellar credit record who cannot secure SBA or traditional lending options. These loans can be very flexible, but it’s important to do your research on the lender and fully understand the terms of the loan before committing.
  • Asset-based financing: With this type of lending option, you can secure a loan or line of credit by using your company’s assets as collateral. Collateral assets can include equipment, inventory, or accounts receivable. Restaurant equipment financing, a specialized type of asset-based financing, is commonly used to help these small businesses make large equipment purchases. Inventory financing can also be used to finance operational expenses. For companies that do not qualify for traditional loans, asset-based financing can make it easier to secure the loan as the lender can rely on the collateral to remove some of the risk.

Each of these lending options comes with different terms and costs. Therefore, it’s vital that you first determine what you need funding for and what type of loan you can qualify for before you identify the best option. If your business has a strong performance history and a good credit record, you can likely secure a traditional loan, which is usually the best option. But if you just need a bit of funding to address a cash flow issue, then a traditional loan – even if it’s cheaper – may not be the best option. Looking at an online lender can often get you the funds quicker since you won’t be required to produce as much documentation to secure the financing. It might be slightly more costly, but if it’s short-term, it can be manageable. The reality is that the best option can only be determined by first identifying why you need the funding and your ability to repay the loan.

Penn Commercial Capital Funding Options

  • Cover Payroll Expenses
  • Upgrade Equipment
  • Purchase New Inventory
  • Pay-down Purchases
  • Purchase New Equipment
  • Advertise and Hire New Staff
  • Expand Marketing Efforts
  • Stock Bulk Inventory

Why Pen Commercial Capital?

Financing New Equipment

Our financing can allow you to replace equipment or complete critical upgrades, thus allowing you to expand your product offerings and fulfill orders promptly. Keeping your kitchen updated means you can offer your customers the best quality food and keep them returning to your restaurant. Business loans for restaurants also provide financing for expansion through equipment purchases, allowing your business to adapt to changes in the local market and throughout your industry.

Small Business Loan

Expand Your Staff

Regardless of what type of food your restaurant offers, you need quality and knowledgeable staff to assist your customers. This requires increasing your workforce as demand grows. Still, without the capital for recruiting, hiring, and training new team members, you are limited in your ability to meet demand with the right waitstaff, kitchen staff, host staff, and various assistants to keep your restaurant clean and ready for customers. With a working capital loan designed for restaurants, you can make staff adjustments to meet your busy times and avoid long waits.

Expand Operations

Are you interested in expanding your restaurant to add seating or opening a new location? Capital is key to creating the restaurant business you always imagined. Business loans for restaurants can provide the capital necessary to buy additional inventory and expand your seating or another location. With these expansions, you can also determine which products and services align with your vision for your business.

Overhead Expenses

Cash for everyday overhead expenses, including inventory, raw materials, and labor, is key to keeping your business running. Working capital loans and restaurant business loans can provide for overhead expenses during slower times of the month, thus allowing you to pay your vendors and keep your doors open for your customers.


Funding decisions in 24 hours.