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Even if you have bad credit

You can get a restaurant small business loan

Getting a restaurant small business loan isn’t hard. Most restaurant owners think that they have to pay high interest rates, and won’t be able to qualify for a traditional loan.

At Delancey Street, we’re empowering restaurant owners. We give you the lowest rate possible, and will beat our competitors rates. If we don’t think we can help you – we refer you to someone who we think can help. We’re a direct lender and marketplace, in one.

 

Going to traditional lenders is slow and frustrating

Frankly, most banks are slow. They also have a lot of rules. It can be super difficult for small business owners to thrive. Most loans from banks also require a personal guarantee – which puts you at immense risk!

Here’s how the traditional small business lending process goes usually:

It takes a long time to apply and qualify

You have to wait 2-3 months to find out the result

Most lenders reject the majority of applicants

It can take 60-90 days, even if after you are approved

Bottom line, getting a restaurant business loan from a traditional lender is painful, slow, and not likely to result in an approval. There are other solutions though….

The Faster Way To Get Funding: Delancey Street

Delancey Street is both a direct lender and marketplace. We make it super easy for you to get funding by doing a completely online application process. Our online application process makes it so the entire process is streamlined. We ask you for basic information, and don’t require personal guarantees on the loans we provide.

Wondering how fast, and easy, it is? Keep reading!

Our online application takes 3 minutes(if that!), and is completely online, with no faxing, or other headaches that cause delays and are painful.

We then evaluate your application to see if we can fund it directly, and evaluate it against our partners/competitors to see if they would be a better fit.

Because of our large network, we can fund many, if not most, business owners who apply everyday.

Funding times vary, but it's possible to get the funds wired within 24 hours of the application submitted.

You can get approved in 24 hours once we see your application and get 3 months of bank statements.

The simple nature of our process, and the fact you’re working with a direct lender hybrid, whose looking out for your best interests is why small business owners turn to Delancey Street. Over the years we’ve added more and more types of services and loans to our offering.

Give Our Marketplace A Try

FIND YOUR LOAN

It’s Not Hard To Qualify For a
Restaurant Small Business Loan

Every day we help business owners who think they’ll never qualify for lending. Many have been rejected, and don’t want to even bother applying. Most owners who apply through Delancey Street are surprised at how simple, and fast, it is.

At Delancey Street, we have a large number of financial products that make it so that regardless of your situation we can help. Each client has a concierge assigned to them who looks at your business and then determines which financial product is right for you. We don’t apply a cookie cutter approach – we look at which product is the best for you.

You don’t need perfect credit to get a restaurant business loan. In addition to credit and time in business, lenders look at a lot of factors:

The type of loan you’re applying for

What are your financial projections

How you plan on using the funds

What is your industry

What's your monthly revenue

We take a creative approach to financing – which means cross-collateralizing different assets and combining different loan products in order to help you qualify.

 

Here’s How To Apply For Your Restaurant Small Business Loan

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First, fill out the online application. Ours is free and takes just 15 minutes. It’s also secured with bank-grade encryption and SSL technology, so you know your information is safe.

You’ll answer a few basic questions like:

  • What industry your business is in
  • How long you’ve been in business
  • How much your monthly revenue is
  • How much debt your company has
  • How you plan to use your loan
  • What your credit score is

All you have to do is fill in the blanks. That’s it.

02

Second, you get matched with one of the many loan options and funding opportunities we have.

03

Third, we send you offers. You get to compare offers and pick the loan option that’s best for your business. If you need a little guidance, we have a concierge who is standing by to help you.

04

Get access to the capital. While funding times vary, you can often use your restaurant business loan in as little as 24 hours after approval.

You have so, so, so many
restaurant small business loan options.

We’re a direct lender, and we’re also a marketplace. It means there’s never a shortage of lenders who we can get the loan approved from. Most business owners know about SBA loan, term loans, and lines of credit. Many are surprised to find out there are many other types of small business loans you can choose from. There’s a restaurant small business loan for just about any business need.

Here are a few ways you can use your restaurant small business loan when you get funded:

Use your restaurant business loan to transform your idea into a business that has ROI

Use a restaurant business loan to buy a franchise, or new restaurant, you've had your eyes on

Get extra working capital with a line of credit, or business credit card

Have extra cash flow on hand with a merchant cash advance, or get accounts receivable factoring from our team

Get a commercial mortgage/hard money loan to expand your office

Use a standard term loan, for just about any business financial needs you have

Get an equipment loan to finance your next truck, software system, or anything else really

What's The Right Choice? Work With Your Delancey Concierge To Find Out

Don’t get overwhelmed. There’s a lot of options – but that’s why we assign a Delancey Street concierge rep to ask you questions, and help you identify which loan is right for you. :

How much financing you can afford?

How do you plan to use your loan?

How much will the loan cost you?

If you need money now, and expect a fast return on investment, then you need a shorter term loan. But if you just want a way to build credit, and need working capital in case of emergencies then a line of credit is a great option. You don’t need to go through the process alone. You can work with your Delancey Street concierge rep who explains the loan options, and helps you understand what you need. Our concierge discusses every single step of the process, and helps highlight the strengths of your business to identify which loan is the best for you.

Many restaurant owners see their first restaurant restaurant small business loan as a huge hurdle. Completing the application process might sound intimidating. But it doesn’t have to be. There is a lot to learn, but it is fairly straightforward once it is broken down. Begin preparing ahead of time to have strong credit to help secure financing. This guide will highlight the ins and outs of the lending system. You’ll be able to apply with high confidence.

How to Prepare
First things first, don’t get ahead of yourself. Make sure you need the loan in the first place.

Then, weight the main options.
A term loan can be a solid choice. Term loans are long-term lump sum payments that are similar to a mortgage. You can also secure a loan via small business credit cards. Some restaurant owners also use invoice financing to raise capital. Others get loans from a family member. Give yourself time to find with the right one for you.

After making your choice, look at these three key factors. Your two credit ratings will determine the amount you can get and the interest rate. Think deeply about your “use case” too. Use case is a fancy term to describe what specific actions or things your restaurant will use the loan for. Lenders must see it since it adds further evidence you’ll pay them back. Mastering these three fundamentals will help you fully prepare to apply for the loan.

Take Stock Of Your Credit
Credit can make or break a business. Take it seriously and use any loans you get wisely. Banks dislike giving untrustworthy people a line of credit. They’re looking to make money too. Credit ratings are a reliable way for lenders to rate a loan candidate whether people like it or not.

It really helps to nurture your two scores before you ever need bigger loans. You’ll also benefit from understanding how these numbers work. A credit-savvy business owner can become quite powerful. The main scores to watch are your personal credit score and the score of your business.

How Do Business Credit Scores Work?
The core thing to keep track of is paying off what you owe. Creditors and vendors report your payment history to the credit agencies. Pay what you owe as quickly as possible. The more you do this, the higher your score rises.
There’s one specific thing that can ruin your chances. Never mix your personal and restaurant finances. It muddies the waters and shows a lack of planning. Get ahead of the game by setting up a business account from the beginning. Go to a local credit union or bank and they will gladly help you.

Use this for all your restaurant transactions. This will split your personal from your restaurant finances. Tax season will be less hectic too. Keep things simple and you’ll be grateful.

You can set up a secured card for your restaurant to do transactions with. Use it for small payments that you have the cash for. Pay it off every month and the score of your restaurant will grow nicely. Make all your vendor payments on time too. Timely payments are usually reported to firms like Equifax and Experian.

How Personal Credit Scores Work
Lenders want to see that you are responsible in your personal life. It will show them you have things under control. That’s all they’re looking for, an orderly person to pay them back.
Your score is based on your history of making your payments. Each time you pay a loan on time, your score will go up. Both FICO and VantageScore rely on this factor.
They give you a score between 300-850. A score over 640 is considered decent. Scores over 720 are seen as excellent. It only takes a few years to get there at most.

Avoid leaving a big monthly balance behind you. It will be like a cinder block around your credit’s ankle. Making the minimum doesn’t hurt you per say. It just makes your credit improve more slowly. To get the best terms for your restaurant business loan, don’t play that game.

You shouldn’t max out your utilization limit. This makes you seem a lot more risky. Constantly using over 80% of your possible credit can hurt your score for example. Keep the individual amounts you take out below 10% to 20%. This shows you are a safer bet for the lender.

Ways Improve Your Score The Most
You are legally entitled to a free report every year from each credit bureau. Many people spread these out so they get their report every 4 months for free. You can use sites like Credit Karma for this. Keep an eye on your progress and it almost gets fun.

Keep These 5 Things In Mind:

1. Pay off past debts. You can payback these debts. Sometimes you can even catch a break since they will be happy to get even a portion of what you owed.

2. Errors in your report. Sometimes companies make mistakes and report the wrong false things. Other times the good payments you’ve made aren’t reported. Look out for bank statement errors too. Also, look out for things you’ve fixed that are still being reported. Errors don’t go away until you’ve successfully disputed them. The same goes for late payments.

3. If you owe the government a tax lien, it hurts your score too. Make sure you agree to a plan or knock it out right away. Pay off parking tickets and liens.

4. Consider paying for more intense credit reporting. You can pay about $120 to $200 to have your credit monitored in real time. They will tell you about changes to your score. Use it to help prevent identity theft and stop your score from being ruined by someone else.

5. You can also get a home or car loan. Some people also get a store credit card to pay in full each month for cheap things like chewing gum. Paying this off will reflect on you in a good way. It doesn’t hurt to have a few lines of credit open that you’re paying off successfully. Focus on making small payments and on buying things that will make you stronger in the future. Don’t buy random things just to consume them.

Remember to pay your debts early and often. Don’t leave a balance if you can avoid it. This will help your utilization ratio and keep your balance low. This is the most important part of all, it can’t be stressed enough.

Make Your Reason Air Tight
Show the bank you’re serious by having a definite use for the money. Show them exactly how you’ll use the money. Will you buy a machine? What will you use it for? Show them your current revenue and how this investment will grow your business. Make sure you can say exactly how much things will cost. Base your claims on the facts as much as you can and they’ll look at you more seriously.

How To Show You’re Master Of Your Finances
Pay an accountant to prepare a financial statement. It’ll show you’re on top of your money. Get bank statements that go at least 2 years back. Have a cash flow statement, income statement and balance sheet prepared for when you apply for the loan. Use these to show how you are profitable if possible. Sometimes you can still get a restaurant small business loan even if you’re not profitable. You must be very specific about how you’re going to fix that. Show that you are growing in revenue while keeping your costs low. The best thing to show how you’re going to scale something in your restaurant that already works.

Knowing your numbers will really help you. Be able to explain how you make your money. Also, know what your expenses are.

For example, a restaurant with decent revenue may not be profitable yet. They could still come to the bank and ask for loan to get a soda machine. If they know its margins and cost, they have a good chance of getting a loan. They can confidently say how it will boost their bottom line.

This is also great to have for your own use as well. It can really clarify your thinking. Knowing your numbers will increase your financial literacy.

Understand That Low Interest Isn’t Always Cheaper
Some banks will offer you low APR to hide that the offer comes with high fees. These can end up costing more than a loan with higher APR and moderate fees. Look at both of these figures before you accept. Calculate the total costs of all loans.
“APR” is the averaged interest you can expect to pay over the loan’s life. It can be different than the stated interest rate since rates can fluctuate. Your APR will be more accurate at showing your true costs.

Politely question them about how they came up with their figures. Ask them if its the best they can do. Don’t be afraid to get better offers and play them off each other. Just don’t be rude because you want to build a strong working relationship with your lender.

Closing Thoughts Before Applying
Your credit, your plan and your finances will be under control once you’ve done the hard parts. This will make you worthy to apply for restaurant small business loans. Make sure you bring a few documents with you when you apply.

Bring a copies of your financial statements. It includes an income statement, cash flow statement, and your balance sheet. Take a copies of your accounts receivable and payable too. It’s wise to bring your tax returns going back a year or two as well. This gives them the fullest picture they can get about your finances.

Once you’ve applied this information, you’ll be set. Display that you know your numbers and they might be impressed. Someone who comes armed with a strong credit score and a clear purpose for the loan is a strong choice for a lender. There will nothing left to fear when you’ve came prepared

Get Your Small Business Loan Today

Applying is free and you’ll have your own concierge

We’ll give you multiple scenarios