Food and Beverage Lending

A business line of credit is a flexible funding option allowing you to borrow up to a set limit, use the funds as needed, and only pay interest on your use. This is ideal for covering costs during seasonal dips, buying extra inventory for busy periods, or addressing unexpected repairs like a broken refrigerator. The revolving nature of the credit line means you can reuse the funds once they’re repaid, making it a reliable safety net for ongoing operational needs.

A business term loan provides a lump sum of money you repay with fixed monthly payments over a specific period. This type of loan is perfect for larger projects, such as renovating your restaurant, investing in new equipment, or launching a second location.

With predictable payment schedules, you can plan your finances confidently while making long-term improvements to your business. For instance, a bakery can use a term loan to expand its kitchen space and hire additional staff to handle increased demand.

SBA loans, backed by the government, offer competitive interest rates and extended repayment terms. They are particularly useful for food and beverage businesses looking to grow sustainably, whether it’s by purchasing property, upgrading production facilities, or introducing a new product line.

Small businesses often find SBA loans appealing because of their favorable terms and support for companies with less established credit histories. For example, a small café could use an SBA loan to secure a prime location and create a welcoming atmosphere.

If your business works with clients with long payment terms, invoice financing can relieve cash flow by advancing funds on unpaid invoices. This is especially helpful for distributors, suppliers, or manufacturers who need steady working capital to cover expenses like payroll or purchasing raw materials. For example, a beverage supplier delivering to large retailers can use invoice financing to maintain operations while waiting for payments.

Equipment financing allows you to purchase or lease essential equipment, such as ovens, refrigeration units, or bottling machines, without a large upfront payment. This option is perfect for upgrading old equipment or acquiring new technology to improve efficiency and maintain product quality. For instance, a bakery can invest in modern mixers and ovens to boost production capacity without depleting cash reserves.

Asset-based loans use your business’s assets, such as inventory, equipment, or accounts receivable, as collateral to secure funding. This type of loan is great for food and beverage businesses with valuable assets but limited cash flow.

For example, a wine distributor can leverage their inventory to access capital for marketing campaigns or expand their delivery network. Asset-based loans provide a way to unlock the value of existing resources to meet financial demands.

A merchant cash advance provides a lump sum of cash in exchange for a portion of your future credit card sales. This option is helpful for food and beverage businesses with high credit card transaction volumes, such as restaurants, cafes, or food trucks.

MCAs are easy to qualify for and provide fast funding, making them ideal for urgent needs like emergency repairs or inventory restocking. For example, a restaurant might use an MCA to stock up on supplies for a holiday rush, repaying the advance through daily credit card transactions.