Restaurant finance in Australia
Running a restaurant or café is a timing game. Wages and suppliers are due before revenue fully lands. The right finance structure can give you breathing room, replace equipment, or help you act on opportunities, without putting your cash flow under pressure.
Learn the main restaurant finance structures, in plain English
Understand what lenders usually look at and why good venues get declined
See why a line of credit can be a better fit than a lump sum loan in many cases
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Last updated: February 2026
Written by CASEY, Australian business finance specialists
This page is a plain-English guide to restaurant finance, cafe finance, and hospitality finance in Australia.
You’re probably here because…
You’re busy, but cash still feels tight.
Wages and suppliers hit before revenue fully lands.
You want the right structure, not the wrong product.
You want clarity and calm, not pressure.
What “restaurant finance” actually means
Restaurant finance is the set of funding and cash flow structures that help a venue manage timing gaps, fund equipment, or support growth. For most hospitality businesses, the core issue is not effort or demand. It is timing. Money goes out first. Money comes in later.
This guide covers restaurants and cafés that are already trading. Most lenders assess these businesses in a similar way, so the same principles apply.
A simple way to choose the right option
Choose based on the job the money needs to do.
If the problem is timing
Examples include wages, BAS, suppliers, and quiet weeks.
This is where restaurant working capital or a line of credit is often the better fit.
If the problem is a one-off purchase
Examples include replacing a fridge, buying a coffee machine, upgrading the kitchen.
You are usually looking at a business loan or equipment finance.
If the problem is ongoing opportunities
Examples include bulk stock buys, seasonal peaks, and unexpected costs.
You are often best with a line of credit, because you can draw only what you need.
If the problem is existing expensive lending
In some cases, you may be able to restructure or refinance into something that suits cash flow better, depending on your numbers. You can learn more about consolidating your debts here:
Contents
Restaurant and cafe finance options in Australia
Most hospitality funding sits inside four main buckets. The right one depends on purpose, cash flow shape, and how the facility is repaid.
1) Business loan (lump sum)
This is the most common structure people mean when they search restaurant business loans.
It’s a lump sum paid upfront. Best when you have a clear one-off need and a clear plan for repayment.
Often used for:
upgrades and improvements for an existing venue
consolidating short-term pressures into a longer structure
funding a specific project with a defined budget
Not ideal when:
you only need a buffer “just in case”
you want flexibility without paying for unused funds
2) Business line of credit (accessible funds)
A pre-approved limit that can be drawn down as needed. Interest is only charged on the amount actually used, not the full limit.
Often used for:
smoothing cash flow gaps
supplier timing and seasonal swings
predictable recurring needs where flexibility matters
Not ideal when:
you need a once-off lump sum for a fixed purchase and you will use it immediately anyway
3) Working capital solutions
A general term that usually means “funding that supports day-to-day cash flow needs”. It can be structured in different ways depending on the lender and your profile. These solutions are particularly helpful if you also do catering.
Often used for:
bridging timing gaps
supporting trade periods and slow weeks
stabilising cash flow while revenue catches up
4) Equipment finance
Funding linked to an asset, such as kitchen equipment or venue equipment. Because there is an asset, assessment and pricing can be different to unsecured funding.
Often used for:
ovens, fridges, freezers, dishwashers
coffee machines, POS, extraction and other key equipment
replacement equipment when downtime would hurt revenue
The big mistake most venue owners make
Most restaurant and café owners search “business loan” because it is the only option they know.
The problem is that many hospitality needs are not a lump sum problem. They are a timing and flexibility problem.
That is why many venues end up with:
a product that does not match how cash flow behaves in hospitality
repayments that feel fine in a busy week but tight in a slow week
repeat short-term borrowing because the structure was not designed for ongoing needs
This page is designed to stop that.
Business loan vs line of credit for restaurants
If you take one idea from this page, make it this:
If you qualify for a business loan, you may also qualify for a line of credit
Not always, but often enough that it should be checked. Especially in hospitality, where flexibility can matter more than a single lump sum.
Why it can be a better long-term fit
A line of credit can give you:
a pre-approved limit available for a set period, often around 12 months
the ability to draw funds when needed rather than taking everything upfront
the ability to repay and redraw within the approved period
a structure that aligns better with seasonal and timing-driven cash flow
Many owners like it because it feels less like taking on a big loan and more like having an approved buffer they can use only when required.
Fees can be lower than most owners expect
Some line of credit products are designed to be low-fee compared to what owners assume.
Depending on eligibility and the final offer, you may see structures with:
no ongoing monthly fee
no annual fee
no drawdown fee
no break cost for repaying early, or reduced costs depending on the product
flexible terms that can be shorter for quick payoff, or longer to reduce repayment pressure
Important note: fees and terms always depend on your profile and the final offer. This page is not quoting a specific product or price. It is explaining what exists in the market so you can make a better decision.
Speed can be fast, but it depends
In straightforward files, once the right information is provided and consent checks are completed, outcomes can move quickly.
In some cases:
an indicative result can be available within hours
approval can be completed within 24 hours
funds can be available within 24 to 48 hours after approval
This is not a promise. Timeframes depend on bank statement conduct, documents provided, entity structure, and credit checks completed with your consent.
Almost as easy as a business loan
For many venues, applying for a line of credit is not harder than applying for a business loan. The key difference is not the form. It is the presentation.
You usually still need:
clear purpose
clean, consistent information
bank statements that tell a sensible story
a structure that matches how your venue actually trades
Why the repayment term on what you use matters
A line of credit is designed to help with cash flow. The benefit is not just access to funds. It is how comfortably you can repay what you actually use.
Two offers can look similar upfront, but feel completely different week to week depending on:
how long you have to repay the amount you use
what happens if you pay it out early, which can vary by product
whether the structure suits your venue’s seasonality
Some lenders allow the amount you use to be repaid over longer periods, which can reduce repayment pressure. Others are shorter-term by design. Others even offer monthly repayments.
The key is matching the facility to how your venue actually trades, not just taking the first option that appears available.
If you want, CASEY can confirm what you may be eligible for and talk you through the structure in plain English before you proceed.
Why good venues get declined
Declines happen for reasons that have nothing to do with whether your venue is “good”.
Common reasons include:
the purpose is unclear or sounds like covering losses rather than managing timing
the cash flow story is not explained, so the lender assumes the worst
existing commitments are not presented properly, so affordability looks tighter than it is
seasonality is normal for hospitality, but it is not framed correctly
the facility requested does not match the need, so the application looks higher risk
In hospitality, how you explain the story matters. The same numbers can be viewed very differently depending on how the application is positioned. That is why structure and wording matter.
In hospitality, the same numbers can be read two different ways. Presentation changes interpretation.
What lenders usually look at for your business
Most lenders assess hospitality using common themes:
time trading and ABN history
turnover consistency and seasonality patterns
business bank statement conduct, including overdrawing, repeated dishonours, and volatility
existing liabilities and repayments
ATO position, including up to date vs manageable plan vs unresolved arrears
the purpose of funds, where clear use generally performs better than vague use
This is not about perfection. It is about showing a clear, stable story.
What you’ll usually need
To assess restaurant finance properly, you will usually be asked for:
at least 6 months business bank statements
business details and entity structure
ID for directors
existing liabilities snapshot
if equipment is involved, an invoice or quote
Some lenders may request extra documents depending on the deal. The goal is to keep it clean and straightforward.
Rates explained in plain English
Most hospitality owners are not taught this properly. So here is the simple version.
Different business finance products can price in different ways. That does not automatically mean one is good or bad. It just means you need to understand what you are agreeing to.
Annual simple interest rate
A simple interest rate is a basic way of showing cost over time, without extra compounding explanations. Some lenders and calculators use it to keep side-by-side comparisons easier.
Annual Percentage Rate (APR)
APR is designed to show a broader annual cost, often including certain fees in the calculation. It is useful for comparing, but the exact method can differ by product type. How industry regulators prefer rates to be displayed.
Factor rate
A factor rate is a multiplier applied to the amount borrowed to calculate the total payback. It can look simple, but it does not behave like a normal interest rate, and the effective yearly cost depends heavily on the term length.
This is not about judging any product. It is about clarity. If you understand the pricing method, you can compare options properly and avoid surprises.
If you want, CASEY can walk you through the cost style in plain English before you proceed.
Common hospitality scenarios this page covers
bridging wages and suppliers between busy periods
seasonal dips that squeeze cash flow
bulk stock buys ahead of peak periods
replacing essential equipment fast
upgrading equipment to increase capacity or reduce downtime
smoothing cash flow while revenue timing improves
restructuring expensive lending into a better fit
How the CASEY approach is different
CASEY is built around one simple idea. Most venues do not need more finance. They need the right structure.
What that means in practice:
you are not pushed into a product you do not need
you are shown the difference between a lump sum loan and a line of credit
your application is positioned properly so lenders understand the story
the purpose and cash flow logic is made clear, not left to assumptions
This is how you reduce the chance of the wrong outcome.
FAQs
Is restaurant finance only for restaurants and cafés?
No. Most lenders treat restaurants and cafés in a similar way. This guide applies to both, as long as the business is already trading. People often call this cafe finance too, and the assessment is usually similar for trading venues.
What is working capital for a restaurant?
Working capital is funding used to smooth timing gaps in day-to-day trading. In hospitality, it commonly supports wages, suppliers, BAS, and seasonal swings.
Is a line of credit cheaper than a business loan?
Not always. It depends on how much you draw, how long you use it, and the fees and structure. For many venues, it can be better value if you only draw what you need and repay quickly between busy periods.
How fast can restaurant finance be approved?
Timeframes vary. Straightforward files can move quickly once the right documents are provided and consent checks are completed. More complex structures take longer. It mostly depends on bank statement conduct, existing commitments, and how clear the purpose is.
What documents do I need?
Most lenders will ask for at least 6 months of business bank statements, entity details, your ID, and a clear purpose. If equipment is involved, they may also ask for an invoice or quote.
Why do venues get declined?
Often it is not the venue. It is the story, the structure requested, or how the cash flow is presented. Hospitality needs to be framed properly so lenders can assess it fairly.
Does this cover opening a new restaurant or cafe?
No. This page is for restaurants and cafés that are already trading.
What’s the difference between hospitality finance and restaurant finance?
In practice, they usually refer to the same types of funding. Hospitality finance is a broader label, while restaurant finance is more specific. The options and assessment themes often overlap for trading venues.