2026 Complete Guide • 18,400 monthly searches

Best Loans for Restaurants in 2026

Compare 5 loan types: SBA, Equipment, Line of Credit, Term Loans, and MCAs. Real costs, approval times, and success stories.

Calculate Payment

Compare Options

Loan Types

$5K-$5M

Range

Fastest

6.5%

Lowest ARP

Interactive Loan Calculator

Calculate Your Loan Payment

Get personalized recommendations instantly

💰 Amount Needed

$50K - $2M

$1,360,000

📊 Monthly Revenue

$10K - $500K

$50,000

🏷️ Credit Score

Fair

590

ESTIMATED MONTHLY PAYMENT

$21,116

per month for 10 years

TOTAL COST (PRINCIPAL + INTEREST)

$$2.5M

PRINCIPAL

$$1.4M

INTEREST

$$1.2M

💡 Your Loan Details

Interest Rate (APR)

14%

Loan Term

10 Years (120 months)

Annual Payment

$$253K

View Best Loan Options →

5 Loan Types Compared

Each serves different restaurant needs

SBA 7(a) Loan

FLEXIBLE

Amount

$50K-$5M

Rate

6.5-10% APR

Term

10-25 years

Approval

30-90 days

Best for: Buying property, major renovations $100K+, opening 2nd location

View Details

Key Advantages

Lowest rates (6.5-10%)

Longest terms (10-25 years)

Can finance real estate

Up to $5M available

‍

Considerations

Slowest approval (60-90 days)

Most paperwork

Need 680+ credit

2+ years in business

Success Story

La Famiglia Italian, Brooklyn: La Famiglia Italian in Brooklyn used $850K to purchase its building and now owns the property with a payment lower than rent.

Equipment Financing

VERSATILE

Amount

$5K-$500K

Rate

6-18% APR

Term

1-7 years

Approval

1-5 days

Best for: Ovens, coolers, POS systems, food trucks, emergency replacements

View Details

Key Advantages

Very fast (1-5 days)

Equipment is collateral

Good rates (6-18%)

600+ credit OK

‍

Considerations

Only for equipment

Shorter terms

Personal guarantee needed

Success Story

Smokin’ BBQ, Austin: Smokin’ BBQ in Austin used $42K for an emergency smoker replacement and was back in business within 4 days.

Line of Credit

IMMEDIATE

Amount

$10K-$250K

Rate

10-30% APR

Term

Revolving

Approval

3-14 days

Best for: Seasonal cash flow, inventory, working capital gaps, ongoing needs

View Details

Key Advantages

Pay interest only on usage

Reusable

Perfect for seasonal

Fast access

Considerations

Variable rates

Annual fees

Need 650+ credit

‍

Success Story

Ocean Breeze, Miami: Ocean Breeze in Miami used $120K for seasonal inventory and now reuses the capital annually while saving $15K versus MCA.

Business Term Loan

FLEXIBLE

Amount

$25K-$500K

Rate

8-30% APR

Term

1-5 years

Approval

3-14 days

Best for: TRUE emergencies only - equipment breakdown losing $1K+/day

View Details

Key Advantages

Flexible use

Faster than SBA (3-14 days)

Fixed payments

620+ credit OK

‍

Considerations

Higher rates than SBA

Shorter terms

Personal guarantee

‍

Success Story

Taco Rapido, San Diego: Taco Rapido in San Diego used $95K for a food truck and catering expansion and now generates $18K per month from catering.

Merchant Cash Advance

FAST

Amount

$5K-$500K

Rate

20-60% cost

Term

3-18 months

Approval

24-48 hours

Best for: TRUE emergencies only - equipment breakdown losing $1K+/day

View Details

Key Advantages

FASTEST (24-48 hours)

500+ credit OK

Payment adjusts with sales

90% approval

‍

Considerations

VERY expensive (30-60%)

Daily deductions

Easy debt trap

No early payoff savings

‍

Success Story

Pizza Place, Miami: Pizza Place in Miami used $30K for an emergency cooler replacement and avoided a costly week of closure.

Which Loan for Your Situation?

Salons & Spas-specific scenarios and recommendations

Restaurants

Recommended:Business Term Loan

SITUATION OVERVIEW

Open a second location with a term loan.

TYPICAL COSTS

Initial Setup$80K-120K

Equipment & Furniture$120K-180K

Working Capital$50K-100K

TOTAL ESTIMATE$250K-400K

BEST LOAN OPTIONOptimized for this scenario

Business Term Loan

FUNDING SPEED7-14 Days

INTEREST RATE6-11% APR

Designed specifically for salon expansion scenarios with flexible terms and ideal collateral requirements

WHY THIS WORKS BEST

Flexible terms align with business growth timeline

Proven track record for similar business scenarios

Structured to match your revenue growth pattern

Calculate Your Payment

Restaurants

Recommended:Business Term Loan

SITUATION OVERVIEW

Open a second location with a term loan.

TYPICAL COSTS

Initial Setup$80K-120K

Equipment & Furniture$120K-180K

Working Capital$50K-100K

TOTAL ESTIMATE$250K-400K

BEST LOAN OPTIONOptimized for this scenario

Business Term Loan

FUNDING SPEED7-14 Days

INTEREST RATE6-11% APR

Designed specifically for salon expansion scenarios with flexible terms and ideal collateral requirements

WHY THIS WORKS BEST

Flexible terms align with business growth timeline

Proven track record for similar business scenarios

Structured to match your revenue growth pattern

Calculate Your Payment

Restaurants

Common questions about financing for salons and spas

What documents do I need to apply for a salon loan?

Typically, you'll need 3-6 months of business bank statements, recent tax returns (personal and business), a valid government ID, and proof of business ownership. Some lenders may also request a business plan or financial projections for larger loans. Equipment financing often requires less documentation since the equipment serves as collateral.

How long does it take to get approved?

Approval times vary by loan type. Equipment financing can be approved in 2-5 business days. Revenue-based financing often provides same-day decisions. Business lines of credit typically take 3-7 days, while traditional term loans may take 7-14 days. Having all your documents ready can significantly speed up the process.

What credit score do I need to qualify?

Credit requirements vary by loan type and lender. Traditional bank loans typically require scores of 680+. SBA loans generally need 650+. Alternative lenders and revenue-based financing can work with scores as low as 500-550, though rates will be higher. Equipment financing is often more flexible since the equipment serves as collateral.

Can I get a loan for a new salon with no business history?

Yes, but your options may be more limited. Startup loans, SBA microloans, and equipment financing are often available to new businesses. Lenders will place more weight on your personal credit score, industry experience, and business plan. Having a strong personal credit history and a detailed business plan with realistic projections will improve your chances.

What can I use the loan funds for?

Most business loans can be used for a variety of purposes including equipment purchases, renovations, inventory, marketing, working capital, and expansion. Equipment financing is specifically tied to equipment purchases. Some SBA loans have specific use requirements. A line of credit offers the most flexibility for ongoing business needs.

Are there any prepayment penalties?

This varies by lender and loan type. Many modern lenders offer loans without prepayment penalties. However, some traditional term loans and SBA loans may have prepayment fees if you pay off the loan early, especially within the first 1-3 years. Always ask about prepayment terms before signing any loan agreement.

Ready to Grow Your HVAC & Plumbing?

Compare rates from 20+ HVAC & Plumbing lenders in 2 minutes

Get Pre-Qualified (No Credit Impact)

Speak to Expert

250+ Businesses Funded

A+ BBB Rating

2-7 Day Equipment Loans

$10K-$5M

Funding Range

80-90%

Practice Financing

5% APR

Starting Rate

16,200

Monthly Searches