How a Restaurant Can Use a Working Capital Loan

Restaurant owners face multiple challenges everyday. Training your waitstaff, testing new menu items and keeping track of vendors are just a few tasks that every restauranteur faces at one point or another.

Some of your challenges have to do with time, some are related to people and others are purely related to money. Perhaps you are dreaming of opening a second location, or you have been offered a special bulk deal and wish that you had some money saved up to take advantage of the opportunity.

If managing your cash flow or capitalizing on growth scenarios is something you struggle with, a working capital business loan may be the right solution for your restaurant.

financing a restaurant

A working capital loan can give you a short term cash injection, meaning that these opportunities won’t be missed. You can use a working capital loan for:

  • Purchasing extra stock or new inventory
  • Taking advantage of supplier special bulk deals
  • Renovating your restaurant to keep it modern, clean and appealing to customers
  • Covering license payments – liquor, health and safety, music
  • Help with the purchase of equipment
  • Advertising of an event
  • Opening a new location

Here’s a story that will put this whole post in context for you:


“An established down-home-goes-uptown restaurant in Indianapolis was losing business due to their long wait time. To fix this they needed to quickly add a bar area and secure a 3-way liquor license. We were able to fund a working capital loan within a few business days of their application and setup a line of credit for them. Soon after they were featured on Food Network’s Diners, Drive-Ins and Dives!”

Another restaurateur shares his story:

restaurant patio

“Having purchased a restaurant a year prior, an owner wanted to add a new patio and renovate. His bank turned him down, and every cash advance company that quoted him required that he pay back the advance within 6-8 months. With ARF Financial, he was able to secure a $50K working capital loan with a one year term. This allowed him to spread the payments over a longer period and helped his cash flow significantly. His new patio and dance floor helped him fill more seats, and book weddings – which increased his sales volume.”

What is a Working Capital Loan?

A working capital loan is a business loan that allows you to manage your everyday operations as well as take advantage of growth opportunities.

A working capital loan, such as one arranged by ARF Financial has a number of features, including:

  • It can be accessed quickly
  • You don’t need a perfect credit rating
  • There is little paperwork
  • There is no collateral on loans for up to $725,000
  • It has flexible terms for up to 18 months
  • It has fixed payments and interest rates
  • It isn’t linked to credit card receipts
  • The interest is tax deductible

A working capital loan can be the key to the success of a restaurant because it allows you to dream big, expand and grow your company without hurting your cash flow.

Find out how much of a loan your restaurant could qualify for using our free business loan calculator.