Restaurant Working Capital Loan

Working capital loans help restaurants reach their full potential.

Getting Restaurants the Working Capital they Need

No matter the size of your restaurant or how long you’ve been in business, there may come a time when you need additional working capital funds. Fundation understands the issues and obstacles that restaurant owners frequently encounter. We specialize in providing restaurant working capital loans that will help you maintain and grow your business.

Restaurant Working Capital Loan Uses

There are a number of situations where owners find that a restaurant working capital loan is beneficial. Below are a few situations where a restaurant loan could help your business.


Periodic renovations are essential to keeping your restaurant fresh and up to date. The amount you will pay for remodeling or renovation is dependent upon a number of factors. The size of your restaurant, the materials being used, and the cost of labor in your area will all have an impact on the total cost. Remodeling costs can add up quickly, and budget cost overruns are common. As a result of these costs, owners oftentimes find a need for additional working capital. This need can arise before, during, or even after a remodeling project is completed.

Licenses and Permits

Restaurants are required to pay for a wide-range of permits, fees and licenses. This can include business licenses, liquor & food licenses, music licenses, and health department permits.

In the USA, liquor licenses are issued and regulated at the state level. The cost of restaurant liquor licenses varies significantly by state.   According to, a liquor license in southern California typically costs around $12,000 if they are available. If new licenses are not available, it can easily cost three to four times that amount to purchase an existing license.

Equipment Upgrades

The type of restaurant you have will play a large part in the type of equipment you need to run your business. Given that, certain items such as ovens, cooking equipment and refrigeration equipment are needed by a vast majority of restaurants. Even used, these items can be extremely expensive. A restaurant loan can make the purchase of equipment more manageable by spreading out the cost burden over a future period of time.

Cash Flow Problems Due to Seasonality

Many restaurants, especially those in tourist areas, are subject to major fluctuations in monthly sales. There are also challenges to be addressed during the busy season, such as increased food and labor costs. In many instances, restaurant owners find they need additional working capital to get through the slow season.


Income tax, sales tax, property tax, payroll tax – the list seems to go on and on. Many of these expenses are quite large, and often seem to be due at the most inopportune times. These expenditures can put a major dent in cash reserves, and lead to difficulty in covering the normal day-to-day expenses.

There are a lot of other reasons you may need working capital – new technology, additional staff, bulk supply purchases, and advertising are but a few.  Whatever the reason, Fundation is happy to help you get a restaurant loan that is right for you.

The information contained on this page is for general informational purposes only. It is not legal advice and should not be relied upon in making borrowing decisions. Fundation loans are subject to lender approval.

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About Fundation

Fundation combines the benefits of a bank loan with the ease and efficiency of an online lender. We offer conventional loans with competitive rates to businesses with varying credit profiles. Our technology allows us to deliver capital in as few as 3 business days through streamlining the collection and evaluation of customer information and conducting the majority of the lending process electronically. As a direct lender, we use our own capital to originate and hold the loans we make, so that we can focus on building relationships with our customers. Our dedicated customer relationship model enables us to understand each unique borrower’s business. This level of service, coupled with our best-in-class products, is why many of our customers come back to us repeatedly for more capital.

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