Capital for the operators who actually feed the room.
Restaurants are a tough underwrite. Margins are thin, revenue swings hard month-to-month, and labor and food costs only go up. Lenders know this, and they price it in. We work with lenders who specialize in food-and-beverage and know how to read the bank statements properly.
How do restaurants get working capital?
Most restaurants get working capital from a line of credit or a revenue-based advance, not a bank term loan. The lender reads three to twelve months of business bank statements. Daily deposits carry more weight than tax returns. A restaurant with steady deposits can usually get a decision in a day or two, even on thin margins. Term loans are still the better tool for a build-out, because the rate is lower and the payment never moves. What the money is for, and how fast you need it, decides the structure.
What we see funded
- Build-out and renovations. New location, kitchen refresh, dining-room remodel. Term loans are the cleanest fit — predictable schedule, defined budget.
- Equipment. Hood, walk-in, ovens, POS upgrade, delivery vehicles. Term loans or equipment-specific financing routed through specialists.
- Working capital for seasonal swings. Restaurants in resort towns, ski towns, college towns, beach towns — a line of credit covers the slow quarters and repays in the busy ones.
- Bridge capital for emergencies. A burst pipe, a health-inspector closure, an unexpected payroll gap. RBF funds in 24–48 hours when speed matters more than rate.
What a restaurant deal usually looks like
Here is a common one. A two-location operator runs about $1.8M a year. The older store needs a kitchen rebuild — hood, walk-in, and a new line. The budget is $140K. We place a $150K term loan over 48 months. The extra $10K covers the overrun that always shows up. Underwriting takes about two days once the bank statements are in. Money lands roughly a week later.
Smaller jobs look different. A $30K oven replacement is usually equipment financing over 48 months. A slow January is usually a $75K line of credit — drawn down in Q1, paid back by June.
What lenders look at
Three things, in this order.
Deposit consistency. Do the daily deposits match the kind of restaurant you run? A busy lunch spot should show money coming in most days of the week. Long gaps raise questions.
Seasonality. Can the slow season carry itself? A beach restaurant that earns its whole year in four months is fine. The lender just wants to see that the other eight months don’t sink you.
Food and labor cost. Lenders check food and labor as a share of revenue against normal ranges for your format. Well above the norm is a flag. Inside the range is a green light.
Owner credit counts for less here than in most industries. A restaurant file can fund on the bank statements alone. Compare that with professional services, where the lender is really betting on the owner’s personal credit.
What we recommend
Building or renovating? Lead with a term loan. Smoothing a slow season? Open a line of credit. Need cash this week with a file that isn’t pretty? RBF is the one most likely to fund. Seasonal swings hit salons and spas the same way, and we use the same playbook there. Send us the file and we’ll name the structure.