At a glance
- Best for equipment
- Equipment financing (ranges, hoods, walk-ins)
- Best for slow months
- Business line of credit up to $1,000,000
- Best for expansion
- Term or SBA 7(a) loan
- NexGen amounts
- $10,000 to $20,000,000 across programs
- Approval speed
- Typically 1 to 24 hours for many programs
- Credit
- 650+ on most programs; 500+ for revenue-based financing; 700+ for SBA loans
Restaurants run on tight margins and constant motion. A walk-in cooler fails on a Friday night. The landlord offers the space next door. Patio season is coming and you need furniture, heaters and staff before the first warm weekend. Food and labor costs move every month, and a slow stretch can turn a good year into a stressful one fast.
This guide covers the best financing for full-service restaurants, quick-service and fast-casual concepts, cafes, bars, bakeries, food trucks, caterers and franchisees, plus how to qualify and the questions owners ask us most.
At NexGen Lending, we help restaurants nationwide compare equipment, working capital and expansion financing with one application.
Why Restaurant Financing Is Different
- Thin margins. After food, labor and rent, there isn’t much room for expensive debt, so cost matters.
- Expensive kitchens. Ranges, hoods, walk-ins, fryers and dish machines add up quickly, and they can’t fail.
- Costly build-outs. Plumbing, ventilation, grease traps and fire suppression make restaurant spaces expensive to open.
- Daily card sales. Steady card deposits make revenue easy to verify, which helps with revenue-based programs.
- Seasonality. Many restaurants have strong summers or holidays and noticeably slower months.
The Best Types of Financing for Restaurants
| Financing type | Best for |
|---|---|
| Equipment financing | Ranges, hoods, walk-in coolers, fryers, dish machines, POS systems, food trucks |
| Business line of credit | Food and supply costs, payroll during slow months, surprise repairs |
| Term loans & unitranche debt | Remodels, patios, a second location |
| SBA loan | Buying a restaurant or building, larger build-outs, refinancing |
| Revenue-based financing | Restaurants with steady card sales and imperfect credit |
Restaurant equipment financing
Kitchen equipment is the most common thing restaurants finance. Because the equipment secures the loan, approval is often easier than for unsecured credit, and you keep cash for food and payroll. NexGen equipment financing runs from $10,000 to $10,000,000, with up to 100% financing and no down payment for qualified borrowers.
Working capital for slow months and surprises
A line of credit covers the gap when a slow month or a broken cooler hits at the wrong time. Draw what you need, repay during busier weeks, and pay interest only on what you use. NexGen’s line of credit goes up to $1,000,000 for businesses with 12+ months in business, $10,000+ in monthly revenue and a 650+ credit score.
Expansion, remodels and buying a restaurant
A term or SBA loan is the usual fit for a remodel, a new patio or a second location. SBA 7(a) loans go up to $5 million and can also finance buying an existing restaurant. If you’re buying a bar or restaurant with a liquor license, see our guide to buying an existing business, and for opening another spot, financing a second location.
How to Get the Best Restaurant Financing
- Know your prime cost and margins. Show lenders you understand where every dollar goes.
- Run all sales through your POS and business account. Consistent, verifiable deposits support larger approvals.
- Get equipment and contractor quotes. Written quotes help lenders size the loan quickly.
- Plan for your slow season. Open a line of credit after a strong stretch, not during a slow one. Our slow-season guide shows how.
- Review your lease. Lenders look at how many years remain and what happens at renewal.
- Lower your processing fees. Reviewing your card processing can free up cash every month.
- Compare offers. Thin margins make total cost critical. See how we compare offers.
What Lenders Look for in a Restaurant
- Time in business, often 12 months or more
- Monthly revenue and consistent card deposits
- Personal credit score
- Prime cost, margins and existing debt
- Lease terms and location
- Health inspections, licenses and, for bars, liquor license status
- For new concepts: operator experience and a business plan
Common Questions Restaurant Owners Ask
Can I get a loan to open a new restaurant?
Not through NexGen until you have some operating history. NexGen programs are built for operating businesses: revenue-based financing needs steady deposits and a 500+ credit score, and most other programs need 12+ months in business and 650+ credit. Brand-new owners often start with SBA microloans through nonprofit lenders, a CDFI or the local SBDC.
How do I replace equipment that breaks down suddenly?
Equipment financing or a line of credit can move quickly. Many NexGen programs approve in 1 to 24 hours, which matters when a cooler or range goes down.
Can I finance a food truck?
Yes. Food trucks and trailers are commonly covered by equipment financing, with the vehicle securing the loan.
Can a franchisee get financing?
Often, yes. Lenders consider the franchise brand’s track record along with your experience and credit. SBA loans are a frequent choice for franchise purchases and build-outs.
What if my credit isn’t perfect?
With a 500 to 649 credit score, revenue-based financing is the main option, since it leans on sales more than credit. Most other NexGen programs, including equipment financing and lines of credit, require 650+, and SBA loans require 700+. Below 500, NexGen's business credit guidance can help you understand your credit profile and build toward approval.
How much can a restaurant borrow?
It depends on revenue, credit and the type of financing. Through NexGen, programs range from $10,000 to $20,000,000.
Get Your Restaurant Funded with NexGen
- Equipment financing from $10,000 to $10,000,000, with up to 100% financing for qualified borrowers
- Lines of credit up to $1,000,000 for slow months and surprises
- Term, SBA and revenue-based financing for remodels and expansion
- Nationwide service, from our office in Hoboken, New Jersey
This article is for general informational purposes only and is not financial, legal, or tax advice. SBA figures come from the U.S. Small Business Administration and NexGen figures from NexGen’s service pages, as of October 2026. Loan terms, rates, and eligibility vary by lender and program and are subject to approval. Availability varies by state.