How restaurant financing works with a broker
Most owners start at their own bank, get one answer, and stop there. Restaurant Finance Network works the other way. You fill out one short application, upload your three most recent months of business bank statements, and Scott Jordan takes that file to the lenders whose programs fit what you are doing: an SBA lender for a long-term build-out, an equipment lender for a hood system and walk-in, a revenue-based funder when speed matters more than price. You see what comes back and decide.
- 1
Tell us about the business
Business type, time open, monthly revenue, how much you need and what it is for. About 5 minutes.
- 2
Upload 3 months of bank statements
Statements show lenders real deposits and cash flow, which is what most restaurant underwriting starts with.
- 3
Review options with a broker
Scott Jordan shops the file to lenders that fit and walks you through what comes back. You decide.
We are a broker, not a lender. That matters for two reasons. First, we are not trying to fit you into the one product we sell. Second, lenders change their appetite for restaurants and bars all the time, and a broker who places deals every week knows which ones are actively funding hospitality right now.
Restaurant loan types we place
Restaurants rarely need “a loan.” They need a specific structure for a specific job. Matching the two is most of the work.
A few rules of thumb we use when we review a file:
- Long-life assets get long-term money. A build-out, a building or a full kitchen should not sit on a six-month repayment schedule. SBA loans, commercial real estate loans and construction and renovation loans are built for that.
- Equipment can usually finance itself. Ovens, hoods, walk-ins, draft systems and POS hardware serve as their own collateral through equipment financing.
- Short-term gaps get short-term tools. Payroll before a busy season or a surprise repair fits working capital loans or a business line of credit.
- Fast money costs more. A merchant cash advance can fund quickly, but the total payback is higher. We explain the trade-off in plain numbers before you sign anything.
Built for operators opening location two, three and beyond
Our best-fit client already runs at least one profitable restaurant or bar and is ready for the next one. Lenders like that profile too, because your existing location gives them real deposits, real margins and a track record to underwrite. The expansion loans page walks through how lenders look at a second location, and our multi-location restaurant financing page covers groups with several units under one ownership.
Colorado and Tennessee restaurant financing
We focus on two states so we can be specific. In Colorado, that means knowing that a liquor license needs both the state Liquor Enforcement Division and your local licensing authority, that ski and mountain tourism swings cash flow hard between seasons, and that suburbs like Castle Rock, Parker and Erie keep adding rooftops and new retail pads. In Tennessee, it means the Tennessee Alcoholic Beverage Commission for liquor-by-the-drink, local beer boards for beer permits, the tourism engine of Nashville’s Lower Broadway and Memphis’s Beale Street, and fast-growing Middle Tennessee suburbs like Murfreesboro, Smyrna and Spring Hill.
What lenders look at in a restaurant file
Every lender has its own rules, and we never publish one lender’s criteria as if they apply everywhere. But most restaurant underwriting starts with the same handful of questions:
- Deposits and cash flow. Your bank statements show monthly deposits, how steady they are and how your balance holds up through the month. This is why we ask for three months up front.
- Time in business. An operating restaurant with history has far more options than a concept that has not opened. New concepts can still be financed, see startup restaurant loans, but expect more paperwork and more of your own cash in the deal.
- Existing debt. Lenders look at loans and advances you already carry. Stacking several short-term advances is one of the most common reasons a file gets declined.
- Credit. Personal credit still matters, especially for SBA and bank loans. Lower scores narrow the options but rarely close every door. See bad credit business loans.
- The plan for the money. A lease, contractor bid or equipment quote tells a lender exactly what they are funding.
Why owners use a broker instead of applying everywhere themselves
Applying to five lenders on your own means five applications, five sets of document requests and, often, several credit inquiries. A broker packages your file once and approaches lenders that are likely to say yes to your profile. Scott Jordan has brokered business financing since 2009, and the job has always been the same: understand the business, find the lenders that fit, and explain the offers honestly, including when the right answer is to wait.
Questions owners ask
How do restaurant loans work?
A restaurant loan is any financing used for a food or beverage business: build-out, equipment, working capital, real estate or buying another restaurant. Some are term loans with fixed payments, some are lines of credit, and some are advances repaid from sales. The right one depends on what the money is for and how quickly it will pay for itself.
What do lenders need to see from a restaurant?
Most lenders start with your recent business bank statements, time in business, monthly revenue, existing debt and personal credit. For larger or longer loans they add tax returns, financial statements, a debt schedule and documents tied to the project, such as a lease, contractor bid or equipment quote. We tell you exactly what each lender needs before you send it.
Can I get financing for a second location?
Yes, and it is the situation lenders understand best. Your first location’s deposits and margins show you can run a restaurant profitably. Lenders then look at the new site’s lease, the build-out budget and how much of your own cash goes in. SBA, term, equipment and construction financing are all common for second locations, often combined.
How fast can a restaurant get funded?
It depends on the product. Revenue-based funding and some working capital programs can move in days once a file is complete. Equipment financing often takes about a week or two. SBA and real estate loans usually take several weeks or longer because of appraisals, underwriting and closing. We give you a realistic timeline for each option rather than a promise.
Does checking my options affect my credit?
Filling out our application does not, by itself, trigger a credit check. Lenders may review credit later in the process, and some use a soft inquiry first while others need a full credit pull before a final offer. We tell you which type a lender uses before your file goes to them, so there are no surprises. [CONFIRM WITH SCOTT]
Is a broker better than going to my own bank?
Your bank is a good first call if it lends to restaurants and you fit its box. Many banks are cautious with hospitality, though, and a decline from one bank says little about the wider market. A broker compares several lenders at once, including banks, credit unions and private lenders, so you can see the trade-offs side by side before you commit.