Can a restaurant that just opened get a business loan? Some working-capital lenders will consider a new restaurant, but most banks want at least a couple years of tax returns. If you’re just starting out, there are still ways to get funding, but the process and requirements are different than for an established business.
Why do banks want years of tax returns?
Traditional banks look for stability. They want to see that your business brings in steady revenue year after year. Tax returns are their main proof. If you’re a new restaurant, you probably don’t have those returns yet. That’s why most banks turn down brand-new businesses, no matter how promising they look. Their rules are strict, and they stick to them. For many owners, this can be a real roadblock, especially when you need cash to cover early expenses, payroll, or inventory.
Are there loans for new restaurants?
Yes, but they work differently than a regular bank loan. Some working-capital programs focus on your recent bank deposits and the activity in your business account. These lenders want to see that you’re making sales and that money is coming in, even if you haven’t been open long. They may also look at your personal credit and the type of restaurant you run. Keep in mind, the options for a brand-new place are fewer, and the terms may be different than what you’d get after a few years in business.
What do working-capital lenders look for in a new restaurant?
Working-capital lenders often look at:
- Your recent business bank statements (usually last 3-6 months) - Your average monthly deposits - Whether your restaurant has a physical location and regular hours - Your personal credit history - The type of food service you offer (full-service, quick-serve, catering, etc.) - How you plan to use the funds
Some programs are available for owners who have been open just a few months, especially if you can show steady sales. Others may want to see at least six months of activity. It depends on the lender and the program.
Does having a brick-and-mortar location help?
Yes, it can. Many lenders are more comfortable working with restaurants that have a physical location. They like to see a lease, signage, and a real kitchen. This shows commitment and reduces the risk in their eyes. If you’re running a food truck or a pop-up, there are still options, but some lenders may be more cautious. The more you can show that your business is real and operating, the better your chances.
What paperwork will I need for a working-capital loan?
You won’t need years of tax returns for most working-capital programs, but you will need:
- Recent business bank statements (usually 3-6 months) - A copy of your lease or proof of your business address - A voided business check - A copy of your driver’s license - Sometimes, a basic profit and loss statement
If you’re applying for equipment financing or a lease, you may also need an equipment quote or invoice. For working-capital loans up to $150,000, some programs work from the application alone, but most will want to see your recent business activity.
How can a new restaurant improve its chances?
Here’s a quick checklist to help you get ready:
- Open a business bank account and run all sales through it - Keep your personal and business finances separate - Maintain regular hours and keep your location visible - Build your personal credit score - Keep good records of your sales and expenses - Be ready to explain how you’ll use the funds
The more organized you are, the easier it is for a lender to say yes. If you’re missing something, don’t worry—it’s worth a conversation to see what’s possible.
What about equipment financing or leasing?
If you need ovens, refrigerators, or other big-ticket items, equipment financing or leasing might be an option. Some programs will look at your business plan, your personal credit, and the value of the equipment itself. For amounts up to $150,000, some lenders can work from the application and an equipment quote alone. This can be a good way to get what you need to open your doors or expand your menu, even if you haven’t been open long.
Common questions
**Can I get a loan if I’ve only been open a few months?** Some lenders will consider a new restaurant with just a few months of bank statements, especially if you can show steady deposits. It depends on the program.
**Do I need collateral for a working-capital loan?** Most working-capital loans are unsecured, so you don’t need to put up equipment or property. Equipment loans and leases are usually secured by the equipment itself.
**Will a working-capital loan affect my taxes?** Loan proceeds are not usually taxable, but interest and fees may be deductible. Confirm the details with your CPA.
What should I do next?
If you’re a new restaurant owner looking for working capital or equipment financing, you don’t have to figure it out alone. Every situation is different, and there may be more options than you think. You can start the process at capcocapital.com/apply or call (337) 270-2036 to talk through your situation with an advisor. There’s no pressure—just straight answers.
