A restaurant pays for its kitchen, its permits and its first payroll before it sells a single plate.

What you pay before the first sale

Our restaurants page covers financing for operating restaurants and bars. This page is about opening one.

• Buildout: plumbing, ventilation, electrical and the dining room.
• Kitchen equipment: ranges, hoods, refrigeration and dish.
• Furniture and fixtures: tables, seating, the bar and the point-of-sale system.
• Permits and inspections from your local health and building departments.
• Opening inventory: food, beverage and paper goods.
• Training payroll for the staff you hire before you open.
• Deposits on the lease and utilities.

Put a dollar figure and a date next to each line. A plan that shows when each cost lands is the first thing any lender or program will ask to see.

What SBA describes for new businesses

SBA's 7(a) program lists starting a business among its uses^[1]. 7(a) loans can be used for working capital, machinery and equipment, furniture and fixtures, and buying or improving real estate^[2]. You apply through a local lender, and you work with the lender, not with SBA^[2]. Our SBA loans page explains the program.

SBA microloans are smaller loans that help small businesses start up and expand. They are made through intermediary lenders, which are nonprofit community-based organizations^[3]. They can be used for working capital, inventory, supplies, furniture, fixtures, machinery and equipment, but not to pay existing debts or buy real estate^[3]. The intermediary lenders make the credit decisions and set the terms^[3].

Expect to bring a business plan. SBA's rules list a business plan, when applicable, among the contents of a loan application^[4], and SBA says most lenders expect one for startup funding^[5].

For kitchen equipment, see equipment financing. ROK describes equipment financing as a loan or lease usable for almost any tangible business asset^[6].

What to keep from your first months

The first months of sales are what turn a new restaurant into one a funder can read. Keep these from opening day:

• A separate business bank account, with every deposit and every supplier payment running through it.
• Daily sales reports from your point-of-sale system.
• Card processor statements, month by month.
• Supplier invoices for food, beverage and supplies.
• Payroll records and tip reports.
• Your lease, permits and inspection reports, in one folder.

What ROK will want to see from a new restaurant

ROK's partner application lists at least 4 months in business and at least $10,000 in monthly gross sales^[7]. ROK's listed minimums assume an operating business^[8,7]. Before opening, SBA's programs and a local lender are the usual first conversations. After opening, your first months of deposits become the record ROK and its lenders read.

Lenders commonly look at credit history, cash flow, equity and collateral^[1]. Credit is one input among several. Once you are past ROK's minimums, have these ready:

• Business bank statements for every month you have been open.
• Card processor statements and point-of-sale sales reports.
• Equipment quotes for anything you want to add.
• Your lease and current debts, including any startup loan.

ROK Financial and the lenders it matches you with make every funding decision. Our funding readiness guide lists the documents in more detail.

Financing that fits this kind of gap

Which one fits your business, if any, is a conversation to have with ROK’s advisor once they have seen your file. These are the types that usually come up.

• Equipment financingFor ranges, hoods and refrigeration. ROK describes equipment financing as a loan or lease usable for almost any tangible business asset^[6].How it works
• SBA loansThe usual first conversation before opening. SBA's 7(a) program lists starting a business among its uses^[1].How it works
• Business line of creditAfter opening, for inventory and payroll between slow and busy weeks, once the restaurant has a sales record.How it works

Related

• Restaurants financing overview