5 Short-Term Business Loans for Restaurants


It takes money to make money, particularly in the food and drink market. Restaurants need financing to pay everything from stock to payroll, but traditional loans can be painfully slow to secure. Fortunately, you can discover several short-term small business […]

It takes money to make money, particularly in the food and drink market. Restaurants need financing to pay everything from stock to payroll, but traditional loans can be painfully slow to secure. Fortunately, you can discover several short-term small business loans that will make you the money you need–when you want it–to cover almost any business use case. Short-term small business loans (also called working capital loans) provide your restaurant fast access to money to deal with your immediate needs.

Whether your commercial fridge unexpectedly breaks or you will need to hire additional assistance to meet seasonal demand, short-term small business loans can help your company through it all.Short- Term Business Loans: What Are My Choices? In regards to short-term loans, you have many options to cover an assortment of use cases:

  • Business line of credit: Enjoy flexible capital that is there when you want it
  • Merchant cash advance: Trade tomorrow’s earnings for cash now
  • Invoice factoring: Switch your outstanding invoices into cold, hard cash
  • Business credit card: Extend your working capital with easy financing that fits in your pocket
  • Short-term loan: Secure an important amount of money in as a little as 24 hours

Below, we will pay the nitty-gritty details of all these short-term loan choices.

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Business Line of Credit

A business line of credit makes your restaurant the cash it requires before it even requires it. You can secure a credit line in advance to maintain as a financial safety net, cover emergencies, or supplement your cash flow. It’s always there in case you need it, but there are no consequences for keeping it untouched in your back pocket. But if you do should tap into your line of charge, you pay interest on funds you borrow–not the complete amount. Since it’s revolving credit, as soon as you repay the borrowed part, your funds become available to use –no need to reapply for funding. A business line of credit is a must-have financing tool for restaurant owners. Due to seasonal demand, continuing inventory restocking, and the restaurant business’s regular surprises, it is important you’ve got capital on hand to handle any circumstance.

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Merchant Cash Advance

Occasionally you will need tomorrow’s cash now, and it is well worth taking a cut to make it happen. When that’s true, a merchant cash advance can get you out of a bind. A merchant cash advance lets you exchange your future earnings to acquire access to capital today. Using a merchant cash advance, you will be given a lump sum of money. Then, you’ll pay back the loan by contributing a part of your company’s daily earnings. A merchant cash advance does not require collateral, and it is typically easy to qualify–letting you get approved and funded in as little as 24 hours. Time is money, and sometimes it’s more costly to wait for tomorrow’s money. While a merchant cash advance is not the least expensive funding option out there, it is quick and dependable.

Invoice Factoring

Invoice factoring (also called accounts receivable financing) lets you market your outstanding invoices at a discount to obtain quick access to funding. If your customers are notoriously slow in paying their bills, it may be worth using invoice factoring to accelerate your cash flow. Additionally, you save precious time that may have been spent following up on outstanding debts yourself. And you may qualify even if you don’t have credit. Factoring businesses care more about the credit of the company that owes you. Start looking for clients who will always pay you on time, but understand that invoice factoring can cover your financing if they fall short. Time to fund is fast, so don’t wait about sitting on your outstanding invoices for a long time. Get the cash you will need to keep your restaurant proceeding.

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Business Credit Card

Much like a personal credit card, your restaurant may use a company credit card to extend your working capital. Moreover, your credit card may also earn you valuable cashback rewards, points, and other perks–such as a 0% introductory rate. You may use a company credit card on any business expenditure at any time, anywhere. Whether you will need to pick up instant supplies in the grocery store or fix up the restaurant to accommodate to COVID-19 requirements, you can depend on your credit card to get the work done. Company credit cards are revolving credit. This means that you get access to the money again as soon as you repay the portion you have used. Qualifying for a credit card is easy, which makes it a excellent credit-building tool for new business owners and restaurants. Use your credit card and you will build your credit to qualify for larger, cheaper loans later on.

Short-Term Loan

Secured loans provide your organization access to a substantial amount of cash in a brief amount of time. Whether you want capital to weather a storm, fund a project, or cover emergency costs, trust a short-term loan can get you the financing you need with lightning speed. Terms can be as short as three months or as long as three decades, which makes it affordable for any restaurant owner who needs quick access to money. You’re going to need a good credit score and two or three years in business to be eligible for a short-term loan, and you may need to give collateral, too. When time is money, expect a short-term loan for you the short-term small business financing you need–fast.

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Save Your Restaurant With a Short-Term Business

LoanRestaurants run on notoriously thin margins, and it does not take much to rock your money flow off balance. When you want access to capital but can not wait around on the conventional month-long financing process, turn to these short-term small business loans. Stay on top of your financing with Revel’s fiscal tools. Easily handle your accounting with Revel’s payments integrations and enable your customers with flexible payments such as split accounts, bar tabs, store credit, and much more. With increased control and insights into your financial wellbeing, you may keep your company moving in the right direction–even if it requires a short-term small business loan from time to time.

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