<\/span>What Is Restaurant Financing?<\/span><\/h2>\nRestaurant financing is the process of sourcing money to open a restaurant, whether that comes from earning and saving money yourself, taking out a bank loan, borrowing money from family, or whatever other way you can think of. This money will cover the cost of your location, equipment, and other start up expenses<\/a>.<\/p>\nMany restaurateurs take out bank loans as this often provides the most direct path towards getting your restaurant financed. Because of this, restaurant financing often refers specifically to taking out a bank loan to cover restaurant costs, just like car financing refers to taking out a loan to pay for a car.<\/p>\n
<\/span>Why Do Small Business Owners Apply for Financing?<\/span><\/h2>\nOpening a restaurant costs a lot of money \u2013 the median cost, according to a survey by RestaurantOwner.com<\/a>, is $375,000 ($3,586 per seat). As you might expect, most budding restaurateurs can\u2019t simply crack open their piggy banks and come up with the kind of money. Similarly, saving up the full price tag could take an entire lifetime, leaving no time left to turn running a restaurant into a career.<\/p>\nApplying for financing from a bank is often the easiest way to come up with the necessary startup funds. However, it can still be difficult to get approved for a business loan, so it\u2019s no silver bullet. That said, it\u2019s definitely one of the most promising avenues for a restaurant-hopeful who\u2019s strapped for cash.<\/p>\n
<\/span>6 Restaurant Financing Options to Consider<\/span><\/h2>\nThere are lots of options available to entrepreneurs interested in opening up a restaurant. Here are a few of the most important ones to know about.<\/p>\n
1. Term Loan<\/h3>\n
A term loan is your stereotypical bank loan: you borrow a certain amount of money from the bank and pay it back on a fixed schedule, called an amortization schedule.<\/p>\n
When you take out a term loan, not only will you pay back the principal (the amount you\u2019re borrowing), but you\u2019ll pay interest as well \u2013 that\u2019s how the bank makes money. Without interest, the bank wouldn\u2019t have any incentive to give you a loan.<\/p>\n
Because of the interest payments, a term loan is less appealing than borrowing from friends or family who won\u2019t charge interest. But of course, very few people have access to friends and family who can spot them that kind of money.<\/p>\n
![\"Restaurant](\"https:\/\/www.zoomshift.com\/blog\/wp-content\/uploads\/2020\/07\/Restaurant-Management-CTA.png\")
<\/a><\/p>\n2. Alternative Loan<\/h3>\n
Alternative loans for restaurants are similar to term loans, but they are offered by institutions that aren\u2019t part of the traditional banking industry<\/a>. Because of this, it\u2019s often easier to get approved for an alternative loan, but they may be from less reputable companies or use predatory lending practices.<\/p>\nExercise caution when looking into alternative lenders. If something seems too good to be true, it generally is. This doesn\u2019t mean that an alternative loan is always a bad idea, but you need to be more careful than you would be borrowing from a well-known bank.<\/p>\n
3. SBA Loan<\/h3>\n
An SBA loan<\/a> is a type of loan offered by the Small Business Administration (SBA) that\u2019s available to qualifying US businesses. They\u2019re similar to term loans, but the federal government guarantees the loan, which means that it will pay back the lender if the borrower defaults (can\u2019t pay back the loan).<\/p>\nThis lowers the risk for lenders and makes it easier for borrowers to get approved. It\u2019s often a good choice for borrowers who are having trouble getting approved.<\/p>\n
4. Merchant Cash Advance<\/h3>\n
A merchant cash advance is a type of cash advance (short-term cash loan) in which the lender receives payment by taking a portion of credit card proceeds each day. These loans are typically very expensive, with interest rates ranging from 10-350% APR.<\/p>\n
If you can only get money through a merchant cash advance, you probably aren\u2019t ready to start your restaurant. A merchant cash advance should be an absolute last resort, and even then it should likely be avoided.<\/p>\n
5. Money From Family and Friends<\/h3>\n
If you\u2019re lucky enough to have family and friends that are willing to support your restaurant dreams, then this is often the best option. Family and friends will likely give you very low interest rates \u2013 assuming they charge you interest at all.<\/p>\n
6. Crowdfunding<\/h3>\n
Crowdfunding involves financing your restaurant via platforms like Kickstarter. Crowdfunding allows you to skirt past interest rates, but you\u2019ll usually have to offer your patrons something in exchange, whether it be free meals, memorabilia, stock in the company, etc.<\/p>\n
![\"\"](\"https:\/\/www.zoomshift.com\/blog\/wp-content\/uploads\/2021\/05\/Restaurant-Financing.jpeg\")
<\/p>\n
<\/span>3 Basic Financing Formulas to Know<\/span><\/h2>\nWhen looking through financing options, it\u2019s always a good idea to know the math behind them so you can do some calculations on your own. Before we get into specific formulas, here are some symbols you should know:<\/p>\n
P<\/em> = initial principal balance<\/p>\nr <\/em>= interest rate<\/p>\nn<\/em> = number of times interest is applied per time period<\/p>\nt<\/em> = number of time periods<\/p>\nAmortization<\/h3>\n
The amortization formula allows you to determine what your monthly payments will be.<\/p>\n
Simple Interest<\/h3>\n
The simple interest formula allows you to determine how much you\u2019ll pay over the lifetime of your loan, including interest (assuming the interest does not compound).<\/p>\n
Compound Interest<\/h3>\n
The compound interest formula does the same thing as the simple interest formula, but it calculates for compounding interest.<\/p>\n
<\/a><\/p>\n<\/span>Conclusion<\/span><\/h2>\nOpening a restaurant is a major undertaking that requires significant upfront investment. This guide is a strong starting point, but you\u2019ll still need to explore your options in more detail \u2014 and ideally consult with a financial advisor \u2014 to determine which financing route is right for you in 2026.<\/p>\n
Check out our staff scheduling software<\/a> designed for restaurants to help you manage employees and run your restaurant when you open your doors.<\/em><\/h4>\n","protected":false},"excerpt":{"rendered":"Running a restaurant is a dream for many food lovers \u2014 but one major hurdle often stands in the way: securing the funds to get started. Opening a restaurant requires a significant investment, and most people don\u2019t have hundreds of thousands of dollars readily available. Luckily, there are lots of ways to get the money […]<\/p>\n","protected":false},"author":26,"featured_media":3371,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false},"categories":[3],"tags":[],"yoast_head":"\n
A Complete Guide to Restaurant Financing in 2026<\/title>\n<meta name=\"description\" content=\"Learn about restaurant financing, including its definition, process, and the expenses it covers such as location, equipment, and other startup costs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Complete Guide to Restaurant Financing in 2026\" \/>\n<meta property=\"og:description\" content=\"Learn about restaurant financing, including its definition, process, and the expenses it covers such as location, equipment, and other startup costs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\" \/>\n<meta property=\"og:site_name\" content=\"Zoomshift\" \/>\n<meta property=\"article:published_time\" content=\"2026-01-13T11:25:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-31T15:05:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.zoomshift.com\/blog\/wp-content\/uploads\/2021\/05\/Restaurant-Financing-How-to-Finance-a-Restaurant.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1138\" \/>\n\t<meta property=\"og:image:height\" content=\"493\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"JD Spinoza\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"JD Spinoza\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\",\"url\":\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\",\"name\":\"A Complete Guide to Restaurant Financing in 2026\",\"isPartOf\":{\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#website\"},\"datePublished\":\"2026-01-13T11:25:58+00:00\",\"dateModified\":\"2026-03-31T15:05:03+00:00\",\"author\":{\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#\/schema\/person\/e23c4b55eead5e752c5f361c9d670e63\"},\"description\":\"Learn about restaurant financing, including its definition, process, and the expenses it covers such as location, equipment, and other startup costs.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.zoomshift.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Restaurant Financing: How to Finance a Restaurant in 2026\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#website\",\"url\":\"https:\/\/www.zoomshift.com\/blog\/\",\"name\":\"Zoomshift\",\"description\":\"SMB Management Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.zoomshift.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#\/schema\/person\/e23c4b55eead5e752c5f361c9d670e63\",\"name\":\"JD Spinoza\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/5a95e64e4714f0d96cfab797f042000d?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/5a95e64e4714f0d96cfab797f042000d?s=96&d=mm&r=g\",\"caption\":\"JD Spinoza\"},\"description\":\"JD enjoys teaching people how to use ZoomShift to save time spent on scheduling. 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Many restaurateurs take out bank loans as this often provides the most direct path towards getting your restaurant financed. Because of this, restaurant financing often refers specifically to taking out a bank loan to cover restaurant costs, just like car financing refers to taking out a loan to pay for a car.<\/p>\n
<\/span>Why Do Small Business Owners Apply for Financing?<\/span><\/h2>\nOpening a restaurant costs a lot of money \u2013 the median cost, according to a survey by RestaurantOwner.com<\/a>, is $375,000 ($3,586 per seat). As you might expect, most budding restaurateurs can\u2019t simply crack open their piggy banks and come up with the kind of money. Similarly, saving up the full price tag could take an entire lifetime, leaving no time left to turn running a restaurant into a career.<\/p>\nApplying for financing from a bank is often the easiest way to come up with the necessary startup funds. However, it can still be difficult to get approved for a business loan, so it\u2019s no silver bullet. That said, it\u2019s definitely one of the most promising avenues for a restaurant-hopeful who\u2019s strapped for cash.<\/p>\n
<\/span>6 Restaurant Financing Options to Consider<\/span><\/h2>\nThere are lots of options available to entrepreneurs interested in opening up a restaurant. Here are a few of the most important ones to know about.<\/p>\n
1. Term Loan<\/h3>\n
A term loan is your stereotypical bank loan: you borrow a certain amount of money from the bank and pay it back on a fixed schedule, called an amortization schedule.<\/p>\n
When you take out a term loan, not only will you pay back the principal (the amount you\u2019re borrowing), but you\u2019ll pay interest as well \u2013 that\u2019s how the bank makes money. Without interest, the bank wouldn\u2019t have any incentive to give you a loan.<\/p>\n
Because of the interest payments, a term loan is less appealing than borrowing from friends or family who won\u2019t charge interest. But of course, very few people have access to friends and family who can spot them that kind of money.<\/p>\n
<\/a><\/p>\n2. Alternative Loan<\/h3>\n
Alternative loans for restaurants are similar to term loans, but they are offered by institutions that aren\u2019t part of the traditional banking industry<\/a>. Because of this, it\u2019s often easier to get approved for an alternative loan, but they may be from less reputable companies or use predatory lending practices.<\/p>\nExercise caution when looking into alternative lenders. If something seems too good to be true, it generally is. This doesn\u2019t mean that an alternative loan is always a bad idea, but you need to be more careful than you would be borrowing from a well-known bank.<\/p>\n
3. SBA Loan<\/h3>\n
An SBA loan<\/a> is a type of loan offered by the Small Business Administration (SBA) that\u2019s available to qualifying US businesses. They\u2019re similar to term loans, but the federal government guarantees the loan, which means that it will pay back the lender if the borrower defaults (can\u2019t pay back the loan).<\/p>\nThis lowers the risk for lenders and makes it easier for borrowers to get approved. It\u2019s often a good choice for borrowers who are having trouble getting approved.<\/p>\n
4. Merchant Cash Advance<\/h3>\n
A merchant cash advance is a type of cash advance (short-term cash loan) in which the lender receives payment by taking a portion of credit card proceeds each day. These loans are typically very expensive, with interest rates ranging from 10-350% APR.<\/p>\n
If you can only get money through a merchant cash advance, you probably aren\u2019t ready to start your restaurant. A merchant cash advance should be an absolute last resort, and even then it should likely be avoided.<\/p>\n
5. Money From Family and Friends<\/h3>\n
If you\u2019re lucky enough to have family and friends that are willing to support your restaurant dreams, then this is often the best option. Family and friends will likely give you very low interest rates \u2013 assuming they charge you interest at all.<\/p>\n
6. Crowdfunding<\/h3>\n
Crowdfunding involves financing your restaurant via platforms like Kickstarter. Crowdfunding allows you to skirt past interest rates, but you\u2019ll usually have to offer your patrons something in exchange, whether it be free meals, memorabilia, stock in the company, etc.<\/p>\n
<\/p>\n
<\/span>3 Basic Financing Formulas to Know<\/span><\/h2>\nWhen looking through financing options, it\u2019s always a good idea to know the math behind them so you can do some calculations on your own. Before we get into specific formulas, here are some symbols you should know:<\/p>\n
P<\/em> = initial principal balance<\/p>\nr <\/em>= interest rate<\/p>\nn<\/em> = number of times interest is applied per time period<\/p>\nt<\/em> = number of time periods<\/p>\nAmortization<\/h3>\n
The amortization formula allows you to determine what your monthly payments will be.<\/p>\n
Simple Interest<\/h3>\n
The simple interest formula allows you to determine how much you\u2019ll pay over the lifetime of your loan, including interest (assuming the interest does not compound).<\/p>\n
Compound Interest<\/h3>\n
The compound interest formula does the same thing as the simple interest formula, but it calculates for compounding interest.<\/p>\n
<\/a><\/p>\n<\/span>Conclusion<\/span><\/h2>\nOpening a restaurant is a major undertaking that requires significant upfront investment. This guide is a strong starting point, but you\u2019ll still need to explore your options in more detail \u2014 and ideally consult with a financial advisor \u2014 to determine which financing route is right for you in 2026.<\/p>\n
Check out our staff scheduling software<\/a> designed for restaurants to help you manage employees and run your restaurant when you open your doors.<\/em><\/h4>\n","protected":false},"excerpt":{"rendered":"Running a restaurant is a dream for many food lovers \u2014 but one major hurdle often stands in the way: securing the funds to get started. Opening a restaurant requires a significant investment, and most people don\u2019t have hundreds of thousands of dollars readily available. Luckily, there are lots of ways to get the money […]<\/p>\n","protected":false},"author":26,"featured_media":3371,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false},"categories":[3],"tags":[],"yoast_head":"\n
A Complete Guide to Restaurant Financing in 2026<\/title>\n<meta name=\"description\" content=\"Learn about restaurant financing, including its definition, process, and the expenses it covers such as location, equipment, and other startup costs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Complete Guide to Restaurant Financing in 2026\" \/>\n<meta property=\"og:description\" content=\"Learn about restaurant financing, including its definition, process, and the expenses it covers such as location, equipment, and other startup costs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\" \/>\n<meta property=\"og:site_name\" content=\"Zoomshift\" \/>\n<meta property=\"article:published_time\" content=\"2026-01-13T11:25:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-31T15:05:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.zoomshift.com\/blog\/wp-content\/uploads\/2021\/05\/Restaurant-Financing-How-to-Finance-a-Restaurant.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1138\" \/>\n\t<meta property=\"og:image:height\" content=\"493\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"JD Spinoza\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"JD Spinoza\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\",\"url\":\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\",\"name\":\"A Complete Guide to Restaurant Financing in 2026\",\"isPartOf\":{\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#website\"},\"datePublished\":\"2026-01-13T11:25:58+00:00\",\"dateModified\":\"2026-03-31T15:05:03+00:00\",\"author\":{\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#\/schema\/person\/e23c4b55eead5e752c5f361c9d670e63\"},\"description\":\"Learn about restaurant financing, including its definition, process, and the expenses it covers such as location, equipment, and other startup costs.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.zoomshift.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Restaurant Financing: How to Finance a Restaurant in 2026\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#website\",\"url\":\"https:\/\/www.zoomshift.com\/blog\/\",\"name\":\"Zoomshift\",\"description\":\"SMB Management Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.zoomshift.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#\/schema\/person\/e23c4b55eead5e752c5f361c9d670e63\",\"name\":\"JD Spinoza\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/5a95e64e4714f0d96cfab797f042000d?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/5a95e64e4714f0d96cfab797f042000d?s=96&d=mm&r=g\",\"caption\":\"JD Spinoza\"},\"description\":\"JD enjoys teaching people how to use ZoomShift to save time spent on scheduling. 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Applying for financing from a bank is often the easiest way to come up with the necessary startup funds. However, it can still be difficult to get approved for a business loan, so it\u2019s no silver bullet. That said, it\u2019s definitely one of the most promising avenues for a restaurant-hopeful who\u2019s strapped for cash.<\/p>\n
<\/span>6 Restaurant Financing Options to Consider<\/span><\/h2>\nThere are lots of options available to entrepreneurs interested in opening up a restaurant. Here are a few of the most important ones to know about.<\/p>\n
1. Term Loan<\/h3>\n
A term loan is your stereotypical bank loan: you borrow a certain amount of money from the bank and pay it back on a fixed schedule, called an amortization schedule.<\/p>\n
When you take out a term loan, not only will you pay back the principal (the amount you\u2019re borrowing), but you\u2019ll pay interest as well \u2013 that\u2019s how the bank makes money. Without interest, the bank wouldn\u2019t have any incentive to give you a loan.<\/p>\n
Because of the interest payments, a term loan is less appealing than borrowing from friends or family who won\u2019t charge interest. But of course, very few people have access to friends and family who can spot them that kind of money.<\/p>\n
<\/a><\/p>\n2. Alternative Loan<\/h3>\n
Alternative loans for restaurants are similar to term loans, but they are offered by institutions that aren\u2019t part of the traditional banking industry<\/a>. Because of this, it\u2019s often easier to get approved for an alternative loan, but they may be from less reputable companies or use predatory lending practices.<\/p>\nExercise caution when looking into alternative lenders. If something seems too good to be true, it generally is. This doesn\u2019t mean that an alternative loan is always a bad idea, but you need to be more careful than you would be borrowing from a well-known bank.<\/p>\n
3. SBA Loan<\/h3>\n
An SBA loan<\/a> is a type of loan offered by the Small Business Administration (SBA) that\u2019s available to qualifying US businesses. They\u2019re similar to term loans, but the federal government guarantees the loan, which means that it will pay back the lender if the borrower defaults (can\u2019t pay back the loan).<\/p>\nThis lowers the risk for lenders and makes it easier for borrowers to get approved. It\u2019s often a good choice for borrowers who are having trouble getting approved.<\/p>\n
4. Merchant Cash Advance<\/h3>\n
A merchant cash advance is a type of cash advance (short-term cash loan) in which the lender receives payment by taking a portion of credit card proceeds each day. These loans are typically very expensive, with interest rates ranging from 10-350% APR.<\/p>\n
If you can only get money through a merchant cash advance, you probably aren\u2019t ready to start your restaurant. A merchant cash advance should be an absolute last resort, and even then it should likely be avoided.<\/p>\n
5. Money From Family and Friends<\/h3>\n
If you\u2019re lucky enough to have family and friends that are willing to support your restaurant dreams, then this is often the best option. Family and friends will likely give you very low interest rates \u2013 assuming they charge you interest at all.<\/p>\n
6. Crowdfunding<\/h3>\n
Crowdfunding involves financing your restaurant via platforms like Kickstarter. Crowdfunding allows you to skirt past interest rates, but you\u2019ll usually have to offer your patrons something in exchange, whether it be free meals, memorabilia, stock in the company, etc.<\/p>\n
<\/p>\n
<\/span>3 Basic Financing Formulas to Know<\/span><\/h2>\nWhen looking through financing options, it\u2019s always a good idea to know the math behind them so you can do some calculations on your own. Before we get into specific formulas, here are some symbols you should know:<\/p>\n
P<\/em> = initial principal balance<\/p>\nr <\/em>= interest rate<\/p>\nn<\/em> = number of times interest is applied per time period<\/p>\nt<\/em> = number of time periods<\/p>\nAmortization<\/h3>\n
The amortization formula allows you to determine what your monthly payments will be.<\/p>\n
Simple Interest<\/h3>\n
The simple interest formula allows you to determine how much you\u2019ll pay over the lifetime of your loan, including interest (assuming the interest does not compound).<\/p>\n
Compound Interest<\/h3>\n
The compound interest formula does the same thing as the simple interest formula, but it calculates for compounding interest.<\/p>\n
<\/a><\/p>\n<\/span>Conclusion<\/span><\/h2>\nOpening a restaurant is a major undertaking that requires significant upfront investment. This guide is a strong starting point, but you\u2019ll still need to explore your options in more detail \u2014 and ideally consult with a financial advisor \u2014 to determine which financing route is right for you in 2026.<\/p>\n
Check out our staff scheduling software<\/a> designed for restaurants to help you manage employees and run your restaurant when you open your doors.<\/em><\/h4>\n","protected":false},"excerpt":{"rendered":"Running a restaurant is a dream for many food lovers \u2014 but one major hurdle often stands in the way: securing the funds to get started. Opening a restaurant requires a significant investment, and most people don\u2019t have hundreds of thousands of dollars readily available. Luckily, there are lots of ways to get the money […]<\/p>\n","protected":false},"author":26,"featured_media":3371,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false},"categories":[3],"tags":[],"yoast_head":"\n
A Complete Guide to Restaurant Financing in 2026<\/title>\n<meta name=\"description\" content=\"Learn about restaurant financing, including its definition, process, and the expenses it covers such as location, equipment, and other startup costs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Complete Guide to Restaurant Financing in 2026\" \/>\n<meta property=\"og:description\" content=\"Learn about restaurant financing, including its definition, process, and the expenses it covers such as location, equipment, and other startup costs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\" \/>\n<meta property=\"og:site_name\" content=\"Zoomshift\" \/>\n<meta property=\"article:published_time\" content=\"2026-01-13T11:25:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-31T15:05:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.zoomshift.com\/blog\/wp-content\/uploads\/2021\/05\/Restaurant-Financing-How-to-Finance-a-Restaurant.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1138\" \/>\n\t<meta property=\"og:image:height\" content=\"493\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"JD Spinoza\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"JD Spinoza\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\",\"url\":\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\",\"name\":\"A Complete Guide to Restaurant Financing in 2026\",\"isPartOf\":{\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#website\"},\"datePublished\":\"2026-01-13T11:25:58+00:00\",\"dateModified\":\"2026-03-31T15:05:03+00:00\",\"author\":{\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#\/schema\/person\/e23c4b55eead5e752c5f361c9d670e63\"},\"description\":\"Learn about restaurant financing, including its definition, process, and the expenses it covers such as location, equipment, and other startup costs.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/restaurant-financing\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.zoomshift.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Restaurant Financing: How to Finance a Restaurant in 2026\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#website\",\"url\":\"https:\/\/www.zoomshift.com\/blog\/\",\"name\":\"Zoomshift\",\"description\":\"SMB Management Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.zoomshift.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#\/schema\/person\/e23c4b55eead5e752c5f361c9d670e63\",\"name\":\"JD Spinoza\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/5a95e64e4714f0d96cfab797f042000d?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/5a95e64e4714f0d96cfab797f042000d?s=96&d=mm&r=g\",\"caption\":\"JD Spinoza\"},\"description\":\"JD enjoys teaching people how to use ZoomShift to save time spent on scheduling. 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<\/a><\/p>\n2. Alternative Loan<\/h3>\n
Alternative loans for restaurants are similar to term loans, but they are offered by institutions that aren\u2019t part of the traditional banking industry<\/a>. Because of this, it\u2019s often easier to get approved for an alternative loan, but they may be from less reputable companies or use predatory lending practices.<\/p>\n Exercise caution when looking into alternative lenders. If something seems too good to be true, it generally is. This doesn\u2019t mean that an alternative loan is always a bad idea, but you need to be more careful than you would be borrowing from a well-known bank.<\/p>\n An SBA loan<\/a> is a type of loan offered by the Small Business Administration (SBA) that\u2019s available to qualifying US businesses. They\u2019re similar to term loans, but the federal government guarantees the loan, which means that it will pay back the lender if the borrower defaults (can\u2019t pay back the loan).<\/p>\n This lowers the risk for lenders and makes it easier for borrowers to get approved. It\u2019s often a good choice for borrowers who are having trouble getting approved.<\/p>\n A merchant cash advance is a type of cash advance (short-term cash loan) in which the lender receives payment by taking a portion of credit card proceeds each day. These loans are typically very expensive, with interest rates ranging from 10-350% APR.<\/p>\n If you can only get money through a merchant cash advance, you probably aren\u2019t ready to start your restaurant. A merchant cash advance should be an absolute last resort, and even then it should likely be avoided.<\/p>\n If you\u2019re lucky enough to have family and friends that are willing to support your restaurant dreams, then this is often the best option. Family and friends will likely give you very low interest rates \u2013 assuming they charge you interest at all.<\/p>\n Crowdfunding involves financing your restaurant via platforms like Kickstarter. Crowdfunding allows you to skirt past interest rates, but you\u2019ll usually have to offer your patrons something in exchange, whether it be free meals, memorabilia, stock in the company, etc.<\/p>\n When looking through financing options, it\u2019s always a good idea to know the math behind them so you can do some calculations on your own. Before we get into specific formulas, here are some symbols you should know:<\/p>\n P<\/em> = initial principal balance<\/p>\n r <\/em>= interest rate<\/p>\n n<\/em> = number of times interest is applied per time period<\/p>\n t<\/em> = number of time periods<\/p>\n The amortization formula allows you to determine what your monthly payments will be.<\/p>\n The simple interest formula allows you to determine how much you\u2019ll pay over the lifetime of your loan, including interest (assuming the interest does not compound).<\/p>\n The compound interest formula does the same thing as the simple interest formula, but it calculates for compounding interest.<\/p>\n Opening a restaurant is a major undertaking that requires significant upfront investment. This guide is a strong starting point, but you\u2019ll still need to explore your options in more detail \u2014 and ideally consult with a financial advisor \u2014 to determine which financing route is right for you in 2026.<\/p>\n Running a restaurant is a dream for many food lovers \u2014 but one major hurdle often stands in the way: securing the funds to get started. Opening a restaurant requires a significant investment, and most people don\u2019t have hundreds of thousands of dollars readily available. Luckily, there are lots of ways to get the money […]<\/p>\n","protected":false},"author":26,"featured_media":3371,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false},"categories":[3],"tags":[],"yoast_head":"\n3. SBA Loan<\/h3>\n
4. Merchant Cash Advance<\/h3>\n
5. Money From Family and Friends<\/h3>\n
6. Crowdfunding<\/h3>\n
<\/p>\n<\/span>3 Basic Financing Formulas to Know<\/span><\/h2>\n
Amortization<\/h3>\n
Simple Interest<\/h3>\n
Compound Interest<\/h3>\n
<\/a><\/p>\n<\/span>Conclusion<\/span><\/h2>\n
Check out our staff scheduling software<\/a> designed for restaurants to help you manage employees and run your restaurant when you open your doors.<\/em><\/h4>\n","protected":false},"excerpt":{"rendered":"