When you want to expand your restaurant’s customer base and increase your revenue, adding online ordering and delivery options is a smart move. You’ll appeal to people looking for convenience and increase accessibility for your loyal diners.
And while the digital expansion is less expensive than opening a new location, it comes with its own expenses. You may need to upgrade your systems, purchase new materials, pay for software subscriptions, market your services, hire new employees, and train your team.
Rather than stretching your cash flow or draining your reserves, consider a restaurant loan. Financing that aligns with your business model and growth goals from a lender familiar with hospitality can support your online ordering services. Read on for restaurant-friendly lenders, five top loan solutions, and what to consider before applying.
Choosing Restaurant-Friendly Lenders
Not every lender fully understands the fast-paced, cash-sensitive nature of the hospitality industry. When you partner with experienced providers, you’ll find the best restaurant business loans to expand your revenue and meet your financial needs.
Consider experienced providers like:
- Cardiff: known for streamlined applications, same-day funding, and tailored solutions1
- Fundbox: leverages machine learning for fast and simple funding2
- BlueVine: offers financing, banking, and accounting in one integrated platform3
- OnDeck: known for transparent short-term loans for small businesses4
- National Funding: provides scalable and customized financing5
Each of these restaurant-friendly lenders offers different products and services, including the five best loan types for adding online ordering to your business.
1. Working Capital Loans
For restaurants looking to quickly launch their online ordering, working capital loans are a popular choice. Most online business loan lenders use streamlined applications and underwriting processes, allowing them to approve and fund your financing fast.
Working capital loans cover short-term operational needs through consistent monthly payments and terms ranging from six to 24 months. You can use the financing to cover upfront expenses, like setting up the ordering platform or training staff to manage digital orders, through consistent and manageable repayments.
Lenders such as Cardiff1 and OnDeck4 stand out for funding short-term loans as soon as the same day you apply. If you need to launch your online ordering service immediately, then start with a working capital loan through one of these providers.
2. Merchant Cash Advances (MCAs)
If you’re looking for fast funding but your restaurant is new or experiences seasonal revenue fluctuations, merchant cash advances (MCAs) are an alternative path to adding an online ordering service. Business cash advances are ideal solutions for restaurants with a high volume of credit card transactions that require speedy funding and flexible repayment terms.
With an MCA, you receive a lump sum as an advance on your future revenue. You can still qualify for funding even if you have a less-than-perfect credit history or are a relatively new business. Then, you repay the loan through a percentage of your daily, weekly, or monthly card sales. Your payments increase or decrease with your sales, so you don’t have to worry about fixed monthly amounts.
Cardiff is one of the best MCA loan providers, offering customized repayment plans and transparent terms. You know exactly how much you’ll owe upfront, without any additional fees, and choose to make monthly, weekly, or daily payments as a portion of your revenue or as a fixed amount.6 Explore Cardiff’s offerings if a cash advance is the right option for your restaurant.
3. Business Line of Credit
You may face ongoing costs associated with online ordering, including monthly app subscriptions, digital marketing campaigns, disposable packaging, and additional delivery drivers.
A business line of credit can serve as a financial cushion in those cases. You can draw funds from your approved limit whenever you need and only pay interest on the amount you use. If the product is a revolving credit line, the available funds will increase with each repayment.
BlueVine,3 Fundbox,2 OnDeck,4 and Cardiff1 offer revolving credit lines specifically for small businesses. If you want flexible funding to address unexpected costs or experiment with your new services, explore a business line of credit from one of these restaurant-friendly lenders.
4. Equipment Financing
Getting into online ordering often involves upgrading your in-store tech and purchasing new equipment to support your service. You may need new tablets, thermal printers, a modernized POS system, or delivery vehicles. Equipment financing enables you to secure the necessary assets while preserving your cash reserves.
An equipment loan or lease spreads the cost of your tools, vehicles, or software into fixed, monthly payments. Because the equipment acts as collateral with this type of financing, you often can secure longer repayment terms and lower interest rates. And if you’re investing in technology that requires more frequent updates, leasing can make it easier to upgrade your equipment.
When you need high-quality and expensive gear to expand your restaurant’s ordering services, work with equipment financing providers like National Funding5 or Cardiff.1 These lenders both work specifically with restaurants to help you secure the tools you need at a low cost.
5. Revenue-Based Financing (RBF)
Most restaurants see peaks and dips in their business throughout the year. Lenders offer revenue-based loans based on your future income, and can structure repayment as a portion of your sales. When online ordering is the next step in expanding your cafe, revenue-based financing offers flexible repayment terms that can match your seasonal income.
Cardiff8 and Fundbox9 offer fast, revenue-based loans to business owners through their streamlined application and funding process. Both lenders use a portion of revenue for repayment, so your payments will fluctuate with your income. Consider using RBF to launch your online ordering, increase your sales, and pay off your loan quickly and easily.
Deciding Which Loan is For You
Though all five of these loans work well for restaurants, the right loan for you depends on your goals and repayment abilities. Decide which one to apply for by clarifying your situation first with questions like:
- How fast do you need the funds?
- What amount of capital do you need?
- Is your revenue currently well-established?
- Do you expect an immediate increase in revenue?
- Will you need to purchase additional equipment?
- Can your profit margins handle fixed payments?
Understanding the reasons behind your funding needs ensures that you use the most strategic mix of financing options available. Say you need to upgrade the POS system and hire additional staff at your deli to handle online orders. You can use equipment leasing to secure the technology you need, a revenue-based loan to hire extra employees, and a business line of credit to act as a buffer. This combination gives you more control over your finances while you expand your deli’s services.
Expanding Your Restaurant Digitally
Getting into online ordering is an ongoing investment in your customer experience, brand presence, and revenue streams. It’s as much of an expansion as opening for more hours or building a second location. And the financing you choose impacts how quickly and effectively you can compete.
With the right loan and lender, you can roll out online ordering in a way that strengthens your business now and sets you up for future success. So start exploring your funding options and expand your restaurant today.
1https://cardiff.co/
2https://fundbox.com/
3https://www.bluevine.com/
4https://www.ondeck.com/
5https://www.nationalfunding.com/
6https://cardiff.co/business-loans/products/merchant-cash-advance/
7https://cardiff.co/business-loans/
8https://cardiff.co/business-loans/products/revenue-based-business-loans/
9https://fundbox.com/partners/