Compare restaurant business loans
Owning and operating a restaurant is no small feat, requiring you to juggle a range of plates at once to keep it running successfully. With Savvy, you can find and compare a variety of small business loans for restaurants all in one place to help you lock in a deal that suits your needs.
|Lumi Unsecured Business Loan|
Boost your business with fast hassle-free funding from Lumi. Apply online in five minutes without harming your credit score and get funds in as quickly as 24 hours. For a limited time: Business Loans with No Repayments for the first 6 weeks. T&C apply.More details
|Lumi Lux Rate Reducing Business Loan|
Lumi Lux™ is an innovative rate-reducing business loan that rewards customers with good repayment histories and no contractual breaches throughout their loan term by dropping interest rates by 25 basis points (0.25%) every six monthsMore details
|Valiant Finance Business Loan Broker|
Valiant is Australia’s leading business loan broker with a network of over 80+ lenders. Apply for a business loan between $5,000 and $1 million and get approved in as little as 24 hours.More details
|ebroker Unsecured & Secured Business Loans|
Compare, find and match fast to over 80 bank and non-bank lenders accessing much needed working capital from a unsecured business loan.More details
Disclaimer: Savvy is not advising or recommending any particular product to you. We provide general information on products for the purposes of comparison, but your personal situation or goals are not considered here. Although we try to make our comparisons as thorough as possible, we do not have information on all products on the market on our site.
You should always consult a given offer's PDS or further documentation in the process of deciding on which loan to choose, as well as seeking independent, professional advice. If you decide to apply with one of the lenders listed above via our website, you will not be dealing with Savvy; any applications or enquiries will be conducted directly with the lender offering that product.
Restaurant business loans
Why should I take out a business loan to help my restaurant?
There are many reasons why a restaurant loan might be one of the best options for your business when it comes to seeking out additional funds. Because they’re designed to be versatile and essentially able to be used across any business area you may need (and are no different from how a standard business loan works), restauranteurs can make use of them for a range of purposes, including:
- Boosting your restaurant’s cashflow
- Funding the expansion, renovation and fitting out of your restaurant
- Purchasing necessary equipment or machinery
- Buying a new POS system or paying to fix or upgrade your current one
- Helping cover the cost of maintaining your lease, including rent, utilities and other regular costs
- Financing bulk inventory and stock to sell
- Covering staff salaries and helping to pay for further training
- Subsidising or entirely covering the cost of conducting marketing campaigns, either online, on television or anywhere else
- Allowing you to stagger the repayments of your purchases
What types of business finance can I choose from?
Fortunately, you aren’t short on options when it comes to the type of finance you can choose for investing in your business. These include:
Unsecured business loan
One of the most common types of business finance, unsecured business loans are perhaps the most accessible for small and large businesses alike. These allow you to access funds without the need for a valuable asset to serve as security which many small businesses seeking finance simply don’t have. Unsecured loans range from as little as $5,000 up to $500,000 and come with fast and simple application processes.
Secured business loan
If you own an asset such as property or valuable equipment, you can instead use this to secure your restaurant loan. If you’re looking to buy a specific business asset, such as an oven or freezer, this is known as equipment finance. By providing the asset as collateral, your potential borrowing range could be greatly expanded to upwards of $1 million in some cases, in addition to reducing your interest rate. The asset acting as collateral plays no role during your repayments and is only required as a last resort if you fall behind.
Business line of credit
Perhaps the most flexible type of business loan, a line of credit allows you to be approved up to a certain limit and withdraw funds whenever you wish. Many businesses prefer these for their flexibility and the fact that you aren’t simply receiving a lump sum with repayments beginning soon afterwards. You’ll only pay interest on the outstanding balance, albeit at a higher rate than standard loans in some cases.
An overdraft facility functions similarly to a line of credit, allowing you to withdraw funds from your account beyond $0. However, what sets them apart is the fact that they come without set repayments, only requiring you to repay interest on the outstanding balance (which is usually higher, like that of a line of credit). Because they can be open indefinitely, you can have one running in the background as a safety net for your restaurant.
How to apply for your restaurant business loan
Map out what you need your loan for
Before you commence the application process, it’s crucial to work out exactly what you need your loan for. What are all the costs you need covered? Will there be any room to move on their prices? By listing everything you plan on paying for with your loan, you can come up with an accurate loan amount and avoid applying for more or less than you need.
You won’t want to find yourself caught short or paying more for the loan than you need to.