3 Great Ways to Finance Your Restaurant Business

by Editorial Team | May 9th, 2020 | Chef Interviews

Whether you’re trying to build your own restaurant or already own one and want to deal with cash flow issues, you may already know that getting financing can sometimes be a challenge in this field. However, when you know all the options at your disposal, you can start to see which ones are more attainable, and what you can do to secure them. You might also find financing options you weren’t aware of before, which could increase your chances. Let’s take a look at some of the common ways you can get financing for your restaurant business.

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This option might be intimidating to some, but finding investors remains a viable way to get financing for your restaurant. One of the ways that you could find investors is through crowdfunding. Sites like Funders Club, for instance, have been used to finance many food businesses and restaurants.

The best way to increase your chances here is to either have a great restaurant and present it well or have a solid business plan. If you intend to present a business plan, however, it would be wise that you speak with a lawyer who’ll be able to build one for you. Also, know that the relationship with the investor doesn’t have to be indefinite. You can have a plan for repayment when you will regain full ownership of the restaurant at a later date.

Equipment Loan

This is probably the best option for established restaurants that may not have the most stellar credit. Most restaurant owners will have a lot of valuable equipment on hand, and that would be a great way to leverage these assets. 

In short, lenders will ask that you put up some of these assets as collateral and will give you a loan based on their value. Services like advancepointcap.com are specialized in these types of loans and many others, so it would be wise to check the options they have available and see the requirements for each.


This is also an option you should consider. In this case, however, you might want to re-evaluate your whole approach. Maybe you could consider downsizing your initial idea and use this first business to finance future operations. 

For instance, you could start a catering business on a shoestring budget. You could decide to work only on weekends, or at certain times of the day and rent kitchen space. This will then allow you to build capital, but also visibility and a core client base if you do decide to start your restaurant later. Another option would be to start a small takeout place first. This will allow you to greatly reduce overhead costs, test the waters, and also build an audience until you build your dream restaurant.

These are all options you should consider if you were thinking or financing a restaurant business. Make sure that you consider them all, and also check other options to see if you could find any that would be more suited for your situation.

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