In the last decade or so, Mexican restaurants have been popping up all over the United States. Of course, they’re an Americanized take on the cuisine, but it doesn’t take away from the fact that they’ve become crazy popular. And even though they’re still Americanized, we’ve come a long way from the Tex-Mex doused in ten pounds of cheese.

But since you’re here, I imagine you’re not really looking for a history lesson on the evolution of American-Mexican cuisine. And since you clicked on the link, I would think it’s a pretty safe bet to assume you’re considering starting a Mexican restaurant of your own. Which is awesome. As of 2018, Mexican restaurants are one of the most common you’ll see out in the US along with pizzerias, steakhouses, and burger joints.

So, while starting a restaurant is exciting, awesome, and everything in between, they’re also a pretty expensive thing to get into. This isn’t to say it isn’t a lucrative market, but with any business, and especially the food industry, it takes quite a bit of financing before you start to make money. You’ll have to consider location, real-estate, utensils, equipment, potential transportation, furniture, decor, branding, and– well, you get the point.

If you’re a restauranteur looking to start your own Mexican restaurant, getting the right loans is an absolute must.

The 4 Best Loans To Finance Your Mexican Restaurant

  • Startup Loans
  • SBA Loans
  • Business Lines Of Credit
  • Equipment Financing

Startup Loans To Finance Your Mexican Restaurant

As the loan name suggests, a startup loan is for new businesses. So, if you’re looking to start your own Mexican restaurant from scratch, a startup loan is one of your best options. Startup loans can give you financing of up to $350,000 in unsecured loans. This means no collateral; however, to apply, you’ll need to have at least one guarantor with a credit score of ideal +660. But, they’ll also look at anything between 680 and 800. Aside from that, the interest rates are 0% for up to 21 months.

SBA (Small Business Administration) Loans To Finance Your Mexican Restaurant

When it comes to an SBA loan, you’ll need to have an established Mexican restaurant before you can consider this option. It’s honestly one of the best loan options for businesses because it provides the most money with the best rates. However, you will need proof of business and revenue in order to qualify. But, on the plus side, the rates are 6% – 8% with a payback period of 10 – 25 years. Just remember, though, SBA loan applications can takes anywhere from 2 weeks to 2 months (14 – 60 days) for approval.

Business Lines of Credit To Finance Your Mexican Restaurant

When it comes to running your soon-to-be or already existing Mexican restaurant, business lines of credit act a lot like a credit card. They’re great because they can help build your business credit up without impacting your personal credit. But remember, as with SBAs, you need to have an established business with provable revenue. Business Express Loans, or business lines of credit, are non-SBA and they offer a credit limit upwards of $500,000. So, whenever you take out any money, you only need to pay back what you’ve used. As long as you pay it back, you’ll always have the full credit limit for a rainy day. As for interest rates and loan terms, they’ll more-or-less vary based on the individual.

Equipment Financing To Finance Your Mexican Restaurant

There’s a lot of stuff you’ll need in order to run a successful Mexican restaurant. There’s things to consider such as transportation, location, real-estate, utensils, furniture, decor, cooking equipment, supplies, ingredients, and– yeah, a lot of stuff. So, this is where equipment financing comes in. It’s the easiest type of loan you can get, and it basically will fund all of those things I listed above (and more). Of course, equipment loans are collateral based. But on the plus side, the equipment is the collateral in a worst-case scenario. And again, loan terms and interest rates will vary.

The Three Cs And How to Qualify For Loans

In order to determine whether you qualify, Finance Factory looks at the Three Cs: Credit, Cash Flow, and Collateral. Although the ideal credit score is 660+, they’ll look at anything between 680 – 800. As for cash flow, they like to see account balances of $1,000 – $5,000, minimum, but also look at monthly and annual revenue. And when it comes to collateral, Finance Factory primarily focuses on providing unsecured loans; however, they will accept collateral. It’s important to know that you only need to provide one of the Three Cs in order to qualify.

Finance Factory helps you find the best loans for your Mexican Restaurant

Interested in finding funding for your business? Finance Factory would love to help! If you’re looking to fund your business within the next 30 to 90 days for $25,000 to $500,00 and have a credit score of 660 or better, let’s chat! Get pre-qualified right now with our quick-step pre-qualification form! And don’t worry, this will not result in a hard credit inquiry of sensitive information. We just want to learn more about you and your business. Click below to get started!