Running a restaurant takes more than great food and service; it takes reliable access to capital. From managing tight margins to jumping on growth opportunities, understanding your restaurant financing options can help you stay competitive, agile, and prepared for what’s next.
At CFG Merchant Solutions (CFGMS), we work with restaurant owners every day to help them secure flexible funding solutions that align with how their business actually operates.
In this guide, we’ll walk through:
- Why restaurant owners often seek financing
- The top funding options available today
- How to manage cash flow after funding
- How to choose the right financing for your restaurant
- What the application process looks like with CFGMS
Why Restaurant Owners Often Need Financing
Restaurants operate in a fast-moving, cash-intensive environment. Even profitable concepts can feel cash-strapped when expenses hit before revenue comes in.
Restaurant owners commonly use financing to:
- Launch a new concept: From buildouts and permits to equipment and initial inventory, upfront costs add up quickly. Many funding options require at least some operating history, so timing matters.
- Renovate or expand: Updating dining areas, adding outdoor seating, or expanding square footage often requires immediate capital.
- Purchase or replace equipment: Commercial kitchens rely on expensive equipment, and breakdowns don’t wait for slow seasons.
- Cover operating expenses: Payroll, rent, utilities, and food costs must be paid consistently, even during revenue dips.
- Expand revenue streams: Catering, delivery, packaged goods, or ghost kitchens all require upfront investment.
- Handle surprises: Repairs, staffing gaps, or rising costs can strain cash flow without a financial buffer.
The right financing gives restaurant owners the flexibility to act quickly instead of putting plans on hold.
Top Restaurant Funding Options to Know
Choosing the right way to finance a restaurant can mean the difference between staying afloat and scaling successfully. Here are some of the most common funding options restaurant owners explore.
- Revenue-Based Financing (RBF)
For restaurants that process a high volume of credit and debit card sales, revenue-based financing can offer fast access to capital.
With RBF, you receive a lump sum upfront and repay it through a percentage of future sales. Payments adjust with your revenue, making this option appealing for businesses with fluctuating daily volume. Costs are typically expressed as a factor rate rather than traditional interest.
- Business Line of Credit
A business line of credit provides flexibility similar to a credit card but built for business use.
You’re approved for a maximum limit and draw funds only when needed. Interest is charged only on what you use, making this a useful tool for managing short-term expenses, seasonal inventory needs, or unexpected costs.
- Equipment Financing
Equipment financing is designed specifically for purchasing or upgrading restaurant equipment such as ovens, refrigeration units, or prep stations.
Because the equipment itself often serves as collateral, this type of financing can offer favorable terms while preserving working capital for other expenses.
- SBA Loans
SBA-backed loans are supported by the federal government and often come with longer terms and competitive rates.
They can be used for renovations, equipment purchases, or working capital, but they require extensive documentation and longer approval timelines. SBA loans are best for restaurant owners who can plan well in advance.
5. Personal Savings
Some owners choose to self-fund using personal savings. While this avoids debt, it’s important to maintain a personal financial safety net and avoid overextending yourself.
Managing Cash Flow After You Receive Funding
Restaurant margins are tight, making cash flow management critical. Once funding is secured, smart financial habits help ensure long-term stability.
- Track every dollar: Monitor income, vendor payments, payroll, inventory, and repairs consistently.
- Create cash flow forecasts: Use historical data and seasonality to anticipate revenue changes and upcoming obligations.
- Review P&L statements regularly: Monthly reviews help identify inefficiencies before they impact cash reserves.
- Budget quarterly: Short-term budgeting allows flexibility while keeping long-term goals in sight.
How to Choose the Best Financing Option for Your Restaurant
Before comparing offers, clarify your goals and constraints.
Ask yourself:
- How much capital do I truly need?
- How quickly do I need the funds?
- What repayment structure fits my cash flow?
- Will collateral be required?
- How does this financing support, not strain, my margins?
The right funding should fuel growth, not create unnecessary pressure.
How to Get Restaurant Business Financing
The U.S. restaurant industry continues to grow, surpassing $1 trillion in sales in 2024. To tap into that momentum, preparation is key.
- 1. Develop a clear business plan
Outline your concept, target market, competitive edge, and financial projections. Funders want to understand how funding will drive success.
- 2. Build industry relationships
Strong networks can lead to referrals, partnerships, and financing opportunities.
- 3. Prepare your financials
Have bank statements, tax returns, and basic financial records ready to demonstrate your ability to manage capital.
- 4. Submit your application
Once you’ve chosen a financing option, complete the application accurately and be responsive to follow-up questions.
What to Expect When You Apply with CFG Merchant Solutions
At CFG Merchant Solutions, we focus on speed, transparency, and real support. Our streamlined application process is designed for busy restaurant owners who don’t have time for unnecessary delays.
When you apply, you can expect:
- A simple, straightforward application
- Fast funding decisions
- A funding specialist who understands the restaurant industry
Typical documentation includes:
- Recent business bank statements
- A government-issued ID
Fuel Your Restaurant’s Next Big Move
Whether you’re upgrading equipment, expanding locations, or managing cash flow through seasonal swings, CFG Merchant Solutions is here to help you access the capital you need, on terms that make sense for your business.