Restaurant Financing: What to do When the Bank Denies You

Running your own restaurant can feel like a dream come true. Customers love your food, the regulars visit often and there’s a line out the door of happy, hungry people just waiting to be seated.


Once you reach a certain level of success with your restaurant, your dream will grow larger and you may start thinking about expansion, renovation or re-decoration. You know all three of these things are investments in the long-term growth of your restaurant, but you may not want to disrupt your cash flow by reaching into your bank account to pay for them up front.

You know that you can apply for a business loan from your bank, but unfortunately it can be difficult for restaurants to get approved for traditional bank loans. Often you need a credit score of at least 650 along with 30% of the loan amount already in cash on-hand and a really impressive business plan. Even if you meet all of your bank’s criteria, it can take weeks or months to get approved for your loan.

Paying The Bills

So if you’ve been declined by a bank or you don’t have the time to wait for an approval, what can you do?

Save Money:

One way of saving money and having a little extra in your pocket is by implementing money saving measures.

  • You might spend a little at the beginning ensuring that all of your staff are fully trained in both the business side of the restaurant as well as the food side.
  • Check that those who are responsible for purchasing have a procedure and the knowledge to minimise wastage.
  • Check that food is being bought at the best price – this may mean shopping around.
  • Try a marketing push – have a look at what other people are doing and maybe think about using the internet to boost your marketing for a highly effective, low cost campaign.
  • Don’t scrimp on the quality of your food or service, as this is what will sell you the most and keep people coming back.

Alternative Lending Option:

Restaurant owner gets a working capital loan

Just because you have been declined by your bank, doesn’t mean that there aren’t other restaurant financing options available to you.

ARF Financial can arrange short-term bank loans for restaurants even if you’ve been turned down in the past. We put up the collateral on your behalf so you can enjoy an unsecured loan with tax deductible interest that includes:

  • Flexible terms for up to 18 months
  • No collateral required for up to $725,000
  • Quick loan approvals (in as little as 48 hours)
  • Fast fundings (in as little as 7-10 business days)
  • Little paperwork and no business plan required

If your restaurant is already open and making at least $8,500 per month in sales you should contact ARF Financial today about restaurant loan opportunities. We want to connect you with one of our seasoned Loan Officers who will help you through the application process, and provide the insight you need to make the right decisions.