Pub and Restaurant Financing Best Practices

Restaurant Financing

To own a restaurant or pub can be fulfilling and lucrative.

However, most businesses require restaurant financing throughout their lifespan. Before you commit, learn more about the best financing practices.

How To Choose Restaurant Financing

Understanding the factors to keep in mind before committing to a financial agreement can help business owners make the right decision.

Why Do You Need Financing?

Business owners in the food industry require financing for various reasons. Most require loans, credit, or other forms of financing at least once in the lifetime of the business. Many require it more often than that.

Before deciding which options are best for you, narrow down what you need the money for. Do you need money for inventory such as supplies, ingredients, or food? For example, some big-ticket seasonal items may require specific ingredients you do not purchase all year long.

Another reason for considering financing is to finance new kitchen equipment. Equipment tends to be expensive, but the funding can be more affordable. If you need money for equipment, your financing needs may be different from someone who needs emergency funding or money to help hire new staff members.

pub financing

How Is Your Credit?

Before choosing financing options, you need to know your business’s credit score. To build business credit, you need a commercial credit account. In addition to the traditional credit bureaus, there are several companies. Business credit reporting agencies include:

  • Equifax Business
  • Experian Business
  • Creditsafe
  • Dun & Bradstreet

When it comes to financing, some loans require you to have a high score, whereas other financing options may be more flexible and lenient. The higher your score, the more likely you will qualify for lower interest rates and longer repayment terms.

Types of Restaurant Financing

When looking for pub and restaurant funding, there are various options available. Depending on your financial health, the age of your business, and your credit, you may qualify for different types of financial assistance.

restaurant funding

Business Loans

There are various types of business loans restaurateurs can take advantage of. One of the most common small-business financing options is an SBA loan. SBA loans are government loans to help cover real estate purchases, startup costs, expansions, equipment and more. While you receive the loan from a private lender, you also have backing from the government.

To apply for an SBA loan, you go through the lender and the lender uses the SBA for a guarantee. If you default on your SBA loan, the government pays the lender. Many pubs and restaurant owners choose SBA loans because of the competitive rates. Additionally, SBA loans have low fees and longer terms.

Unfortunately, to be eligible for an SBA loan, you have to have at least two years of business and a substantial revenue and credit score.

For businesses that require less than $50,000, microloans may be sufficient. Microloans may come from nonprofit lenders. New business owners tend to require microloans. If you do not qualify for a traditional business loan, you can also explore personal loans. Online lenders and banks provide personal loans. When you receive a personal loan, you can use the money for your business.


Crowdfunding involves using the internet or other platforms to raise money for your business. For instance, if you start a new restaurant or pub in your hometown, you may rely on local support to get the company started or to help finance the business going forward. To launch a successful crowdfunding campaign, you may want to make a video to reach your audience and convince your audience to pledge support.

You may want to offer your backers or supporters varying benefits when it comes to crowdfunding. One benefit of crowdfunding is that you do not have to pay the money back. However, it may take a lot of extra time and energy to create a crowdfunding campaign.

Restaurant Equipment Financing

Equipment financing is for machinery and equipment related to the operation of your business. Equipment leasing can be used to purchase kitchen equipment for restaurants and pubs, along with furniture, such as tables, chairs, and booths. The amount of funds you receive depends on the value of your equipment. Equipment leasing helps reduce the strain of making a large purchase all at once. Unlike some other financing options, equipment leasing offers greater flexibility and allows for a smaller amount of upfront cost for equipment purchases. 

Business Line of Credit

A business line of credit has more flexibility than a traditional business loan. There are several advantages to getting a business line of credit to fulfill your company’s financial needs. One of the biggest advantages is that you only pay for what you use and it replenishes as you pay it back. A business line of credit is available for you to access at any day and time, giving you the flexibility to control how much you borrow against your available line of credit when you need it most.

restaurant financing best practices

How To Optimize the Hunt for Pub and Restaurant Financing

Our service may ease your mind and deliver financing options quickly to avoid the overwhelming financial hunt. Platform Funding requires you to submit a quick application for approval. Once approved, a funding specialist determines your borrowing needs. Then, we tailor a program specifically to your needs focused on your request and repayment terms.

At Platform Funding, we have helped over 15,000 businesses receive financing. Our goal is to help your restaurant access steady funding in a fast, flexible, and straightforward way. When your company requires money for growth, you don’t have time to wait. We’re available to answer any questions or concerns about our service. Contact us today to take the next steps towards flexible financing.