Restaurant Business Loans

A guide to helping you understand and compare restaurant business loans online


Restaurant business loans explained

To build a successful restaurant business requires continual investment in staff, equipment, marketing campaigns and the food itself, which can make balancing the books difficult.

It can seem like a daunting and time-consuming task to search for compatible restaurant business loans, whether you are just starting out or running an established business.

However, we work with a variety of lenders who specialise in providing restaurant business loans, so you can apply for the funds you need to bolster your restaurant business plan.

Here at Business Comparison, we are committed to helping every business access the finance they need at competitive rates which suit their individual requirements.

Restaurant loans for start-up companies

If you have dreams of running your own business but are struggling with restaurant business financing options, through our panel of lenders starting a restaurant with no money will soon become a possibility. There are very few people who are able to fully finance a new restaurant straight out of their own pockets, instead restauranteurs seek out funding through specific restaurant business loans.

We understand the range of expenses involved when starting a restaurant, from securing the perfect premises and fitting the kitchen, to hiring a skilled team and planning your first marketing campaign. Our team are experienced in comparing and finding providers of restaurant business loans. Helping you to understand the loan details and repayment terms.

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Restaurant business loans to help your established business grow?

In addition to raising start-up capital, restaurants also rely on maintaining a sustained level of working capital to ride out quiet periods and take advantage of opportunities to grow.

The good news is that if you own a restaurant, small business loans are available to provide a range of restaurant funding options.

We understand the pressures of owning a food business, so our panel of lenders are carefully selected based on their ability to offer small business loans for restaurants exactly when they need it. Whether cash flow issues have made it difficult to cover short-term overheads, or you need additional finance to support expansion plans, a competitive restaurant business loan could help.

Every established restaurant will go through a period of change which requires additional funds. In some restaurants the pressure from competition means financial support is required to be able to invest in new staff, furniture, branding or even new premises.

Although, it is also common for businesses to borrow funds to cover the cost of a new opportunity or unprecedented period of growth. Whatever your requirements, the Business Comparison team is here to support you.

How can I improve my chances of being accepted?

Asking a lender to invest a large amount of money in your business can be daunting, however, equipping yourself with as much information as possible will help convince them your business is set for success.

One of the most important steps in successfully finding restaurant financing companies which are willing to provide you commercial finance, is to create a comprehensive restaurant business plan for loan applications. The business plan should outline what the funds will be used for and how the business will meet the repayments.

As part of the plan decide exactly how much capital you require, as this will ensure you don’t over borrow. Start by creating a cash flow projection for the next year, this will reveal any periods where you expect to struggle when carrying out your plans.

The majority of lenders will want to see financial accounts for you and the business, alongside a good business credit score. Generally, the business credit score will be one of the key deciding factors in your loan application. A better score will also provide access to the most competitive rates, which could mean you benefit from lower monthly repayments.

Although, there are lenders in our panel who can provide finance to restaurants which are unable to meet these criteria.

Lenders understand that restaurant business loans need to be flexible, so there are a variety of short and long-term repayment options available through our unique comparison service.

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What restaurant business loans are available?

A short term business loan is an ideal way to quickly solve cash flow problems and in most situations the funds are available in as little as 24-48 hours.

The lenders of short-term finance are likely to focus more on the recent trading history rather than the creditworthiness of the business. Although the loan could be repaid in as little as 12 months, it is worth bearing in mind that these lenders could charge a more expensive interest rate than a longer-term option.

A long-term loan is perfect for financing large scale projects or investments, with lower interest rates and repayment terms generally agreed from 2 to 5 years. The longer repayment period is ideal when a larger amount is required. It is important to consider the expected increase in revenue, so that you can calculate the potential cashflow forecast before agreeing to a long repayment period.

The lenders we work with are known for their flexible terms, so you could look to borrow anything from £1,000 up to £20,000,000. If you are looking to borrow a large amount, you will probably be looking at taking out a secured business loan. The lender will require some of your restaurants assets to be provided as security, such as the property, stock and furniture.

If your business does not have the assets, or the loan is for a relatively low amount you will usually be guided towards an unsecured loan. Although business assets will not be included, the lender may require a registered business director to provide a personal guarantee.

Compare your options with our restaurant business loan calculator

We work with a variety of companies which specialise in providing restaurant business loans, from traditional high street banks to popular peer to peer lenders. To find the ideal loan for your restaurant simply enter your details into our simple business loan calculator.

Our quick system will ask you details such as the ideal loan amount, the reason for the loan and the repayment terms required. You will then be provided with a list of lenders of restaurant business loans, which suit your exact requirements.

We know that there is no one size fits all approach to restaurant business loans, so our comparison engine will provide you with a list of matching lenders, so you can easily compare their loan terms.

To decide which loan is the best option for your restaurant you will need to consider aspects such as the interest rate, fees, the likelihood of acceptance, repayment terms and their familiarity with lending to restaurants. Once you understand the type of loan you need it will make it easier to choose between the range of options available.

Through our panel of lenders, we know that there are options for every promising restaurant. Whether your restaurant is well established with a strong credit history, or just starting out with a poor credit history, we can assist you in the application for both secured and unsecured restaurant loans.

Our team are always available to discuss everything from preparing for the application, to helping you decide the amount of finance your business requires. If you would like more advice about finding the right restaurant business loans for your requirements, please contact our experienced team.

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