The 5 Best Loans for Restaurant Startups
Setting up your own restaurant is no small feat. Deciding on menus, staffing, purchasing equipment, and advertising can be a lot of work. None of this can be done without a substantial sum of funding. But where does one find reasonable loans for a culinary startup? We’ve got you covered! Following are the best five loans for a restaurant startup:
SBA (7a) Loan
1. Interest rate is negotiable and lower
2. Eligibility decisions made by the SBA or lender
3. Down payment requirements are lenient
Unsecured Business Loan
- No asset is required as collateral
- Good credit score and financial history is needed
- Loan securing process is easier as assets don’t need documentation
Rollover as Business Startups (ROBS)
Rollover as Business Startups (ROBS) lets business owners use their 401(k), IRA, or any other retirement fund to pay for restaurant startup costs. You can also use your retirement fund as a down payment for a loan!
- No credit score requirements
- Avoid a traditional loan (no debt payments or cash flow burden)
These are the top five loans for any restaurant startup. Choose the financing option that best suits your needs and get your restaurant running right away. The professionals at Restaurant Tool can help with your restaurant financing needs, please Contact Us for funding help.
Business Line of Credit (LOC)
Business Line of Credit (LOC) is most suitable for your quick financing needs.
- Best for short-term funding requirements
- Low minimum credit score required
- Replenish cash flow
Equipment Finance Loan
- Helps steer clear of cash flow problems
- Additional collateral isn’t required
- Buy, repair, and lease equipment with a flexible scheme