Best Restaurant Business Loans in Australia

Disclosure: This post contains sponsored links whereby we may receive a commission for any purchases made. The following is general information only and should not be considered financial advice.

Running a restaurant in Australia is as challenging as it is rewarding. From the upfront costs of kitchen equipment and fit-outs to the ongoing demands of inventory, payroll, and rent, capital needs never truly stop. Whether you’re launching your first café, expanding a successful eatery, or navigating a seasonal cash flow crunch, access to the right funding can make or break your business.

The good news? Australia’s hospitality sector is booming, market size has jumped by 31.1% in recent years, and lenders are paying attention. Today, restaurant owners have more financing options than ever before, from traditional bank loans and equipment finance to merchant cash advances and even crowdfunding platforms. Each option comes with its own set of advantages, requirements, and trade-offs.

This guide breaks down the best restaurant business loans available in Australia, explaining how each works, who they’re best suited for, and what you need to qualify. Whether you’re an established operator with strong credit or a startup looking for fast, flexible capital, you’ll find a solution that fits your needs.

Top Loan Platforms For November 2025

1) Australian Loan Finder

Australian Loan Finder is an Australian-owned business finance provider helping local small businesses access fast, flexible, and transparent funding through partnerships with reputable Australian lenders. Unlike traditional banks or generic loan marketplaces, Australian Loan Finder offers a direct, streamlined approach to business finance—acting as your dedicated finance partner from application to funding. Businesses can apply online in just 2 minutes, with loans available from $5,000 to $500,000, and receive personalised funding options designed around their needs. For eligible borrowers, no upfront security is required on loans under $150,000, and decisions can be made within hours—with funds often available in as little as 24 to 72 hours.

With fixed, transparent pricing, loan terms between 3 months and 5 years, and flexible repayment schedules that align with your cash flow, Australian Loan Finder gives business owners the clarity and control they need to grow confidently. Whether you’re managing day-to-day operations or investing in expansion, Australian Loan Finder simplifies access to funding—so you can focus on what matters most: running your business.

2) Lumi

Introduction to Lumi

Lumi stands at the forefront of small business financing solutions in Australia, offering a robust platform that prioritizes flexibility and transparency.

With a commitment to empowering businesses, Lumi provides unsecured loans ranging from anywhere from $5,000 to $300,000, helping to simplify the lending process for entrepreneurs.

Lumi Business Loan Application Process

• Quick:Simple online application process to submit your information and the type of loan your after to get started
• Simple: Simply gather your ABN/ACN, driver’s license, and bank details and find out pretty quick if your approved
• Fast: Approval can come as fast as 2 hours, and funding can hit your account within the same business day

Features of Lumi Business Loans

• Loan Amount Flexibility: Borrowers can access loans ranging from $5,000 to $300,000, accommodating diverse business needs
• Speedy Application and Approval: Lumi’s emphasis on quick processing allows applicants to receive funds within the same business day, facilitating timely responses to business opportunities
• Transparent Fee Structure: Lumi sets itself apart with minimal fees, notably a 2.5% establishment fee, providing clarity and predictability for borrowers
• Unsecured Loans: With a focus on inclusivity, Lumi offers unsecured business loans, eliminating the need for collateral for amounts up to $300,000
• Flexible Repayment Options: Weekly repayment frequencies, principal and interest repayment types, and the option for extra repayments contribute to a borrower-friendly repayment structure
• Early Repayment Benefits: Lumi distinguishes itself by allowing borrowers to pay off their loans early without incurring penalties. Early payout options and discounts are available, with principal-only payouts accessible after 6 months
• Eligibility Criteria: Lumi caters to businesses that are at least six months old, with a minimum annual turnover of $50,000, establishing accessibility for a broad range of enterprises

3) Prospa

Overview of Prospa

Navigating the landscape of small business loans in Australia? Prospa is another solid contender in the market across both Australia and New Zealand. Prospa provides small business owners with a quick and simple way to obtain financing, and it has already assisted thousands of Australian small enterprises. Prospa received the Deloitte Tech Fast 50 in 2015, after increasing by 6071% in three years, making it Australia’s fastest growing technology firm and Asia’s third quickest. Prospa was a Telstra Business Awards finalist in 2015 and ranked 33rd globally as a leading innovator in KPMG’s Fintech 100.

How Prospa Small Business Loans Work

Prospa offers loans from $5,000 up to $500,000 for cash flow or growth. You can apply online in about 10 minutes and often get a decision the same day (with funds possible in 24 hours).

No upfront security is needed for loans under $150,000. Loan interest rates vary based on your business and are calculated upfront. This helps you to know the total cost before you borrow. Early repayment options are available to save on interest.

Benefits of Prospa Business Loan

Choosing Prospa for your business financing needs means opting for a partner who understands the nuances of small Australian businesses.

Simple Application Steps: Prospa ensures a straightforward application process that respects your time and urgency. With an online form that takes around 10 minutes, you’re on your way to financial support without unnecessary delays.

Flexible Loan Uses: Prospa allows you to utilize the loan for various business objectives, from buying supplies to expanding your team or renovating your workspace. Your business, your choices.

Variable Loan Durations: With loan periods ranging from 3 months to 3 years, Prospa caters to different business needs. Whether you want a short-term loan (boost) or a more extended financial support plan, Prospa offers flexibility.

Modular Payment Schedules: Prospa understands that one repayment schedule doesn’t fit all. You have the freedom to schedule repayments based on your business’s cash flow, choosing between weekly and daily payments.

Quick Approval and Funding: Prospa lives up to its promise of being swift. A 10-minute online application, coupled with approval possible within the hour depending on your scenario ensures you don’t miss out on capital.

Prospa’s business loans offer numerous advantages:

1. Streamlined application: The online form takes only 10 minutes to complete, respecting your time and urgency.
2. Versatile loan purposes: Use funds for various business objectives, including purchasing supplies, expanding your team, or renovating your workspace.
3. Flexible loan terms: Choose from loan periods ranging from 3 months to 3 years, tailored to your specific business needs.
4. Customisable repayment options: Schedule repayments based on your business’s cash flow, with weekly and daily payment options available.
5. Rapid approval process: Depending on your situation, approval is possible within an hour of application submission.

1. Traditional Bank Loans: Reliable Funding for Established Restaurants

Traditional bank loans remain one of the most reliable and cost-effective financing options for restaurant owners with solid credit histories and established operations. Major Australian banks, including Commonwealth Bank, Westpac, ANZ, and NAB, offer term loans that provide lump-sum capital repaid over fixed periods, typically ranging from one to seven years.

These loans can be secured (backed by collateral such as property or equipment) or unsecured, depending on the loan amount and the lender’s risk assessment. Interest rates are generally competitive, especially for borrowers with strong financials, and monthly payments remain consistent throughout the loan term, making budgeting straightforward.

Eligibility Requirements

Banks are cautious lenders, and their approval process reflects that. To qualify for a traditional bank loan, restaurant owners typically need:

• At least 12–24 months of trading history, demonstrating consistent revenue and profitability
• Good personal and business credit scores (generally 650 or higher)
• Comprehensive financial documentation, including tax returns, profit and loss statements, balance sheets, and cash flow forecasts
• Security or guarantees for larger loan amounts, such as a personal guarantee or asset pledge
• A detailed business plan outlining how the funds will be used and how repayment will be managed

Pros and Cons

Pros:

• Lower interest rates compared to alternative lenders
• Fixed repayment schedules for predictable cash flow management
• Larger loan amounts available, especially for secured loans
• Long repayment terms reduce monthly payment burden
• Relationship banking benefits, including access to additional services and advice

Cons:

• Lengthy approval process, often taking several weeks or even months
• Strict eligibility criteria that can exclude startups or businesses with limited trading history
• Extensive documentation requirements can be time-consuming
• Collateral requirements may put personal or business assets at risk
• Less flexibility compared to newer fintech lenders

Traditional bank loans work best for one-time large expenses, think major renovations, opening a second location, or acquiring another restaurant. If you’re an established operator with strong financials and the patience to navigate a detailed approval process, this option offers some of the most favorable terms available.

2. Equipment Finance: Fund Kitchen and Restaurant Equipment

Restaurant equipment doesn’t come cheap. Commercial ovens, fridges, dishwashers, coffee machines, point-of-sale systems, these essentials can easily run into the tens or even hundreds of thousands of dollars. Equipment finance is a specialized loan product designed to help restaurant owners acquire these assets without draining working capital.

With equipment finance, the equipment itself serves as security for the loan, which often results in faster approvals and less stringent documentation requirements compared to traditional unsecured loans. Lenders are more comfortable extending credit because they can repossess the equipment if repayments aren’t met.

Loan amounts typically range from $10,000 to $500,000, with repayment terms spanning two to seven years. Some lenders offer no-doc or low-doc options for loans up to $500,000, making this an attractive option for newer businesses or those with less-than-perfect paperwork.

What Equipment Qualifies

Most restaurant-related equipment qualifies for equipment finance, including:

• Kitchen appliances: ovens, grills, fryers, refrigerators, freezers, dishwashers
• Food prep equipment: mixers, slicers, food processors, blenders
• Point-of-sale (POS) systems and ordering technology
• Coffee machines and espresso equipment
• Furniture and fit-out items: tables, chairs, booths, bar fixtures
• Delivery vehicles for takeaway and catering operations
• Ventilation and exhaust systems

Both new and used equipment can be financed, though lenders may impose stricter terms or lower loan-to-value ratios for older items. Leasing is also an option, allowing you to use equipment without owning it outright, ideal if you want to upgrade regularly or preserve cash flow.

Tax Benefits

Equipment finance offers significant tax advantages for Australian restaurant owners. Under the Australian Taxation Office’s instant asset write-off scheme (eligibility and thresholds vary by year and business size), you may be able to immediately deduct the full cost of eligible equipment in the year of purchase, rather than depreciating it over several years.

Also, loan interest and lease payments are typically tax-deductible as business expenses, reducing your overall tax liability. Chatham with your accountant to ensure you’re maximizing these benefits and structuring your equipment finance in the most tax-efficient way.

Equipment finance is ideal for restaurants that need to upgrade aging equipment, expand kitchen capacity, or outfit a new location without tying up cash reserves. It’s also a smart choice for startups that need to invest heavily in equipment upfront but lack the capital for outright purchases.

3. Business Line of Credit: Flexible Cash Flow Management

Cash flow challenges are one of the biggest headaches for restaurant owners. Revenue can swing wildly from week to week, influenced by seasonality, weather, local events, and economic conditions. A business line of credit offers a flexible safety net, allowing restaurants to access funds as needed rather than taking out a lump-sum loan.

Unlike a traditional term loan, a line of credit provides a predetermined credit limit, say, $50,000 or $200,000, and you only pay interest on the amount you actually draw down. Once you repay what you’ve borrowed, those funds become available again, similar to how a credit card works. This revolving structure makes lines of credit perfect for managing day-to-day expenses, smoothing out cash flow gaps, and covering unexpected costs.

Credit limits typically range from $10,000 to $500,000, with interest rates varying based on creditworthiness and whether the line is secured or unsecured. Some lenders offer interest-only repayment periods, giving you even more breathing room during lean months.

How It Works for Restaurants

Imagine it’s the middle of winter, and foot traffic has slowed. Payroll is due, but this week’s takings won’t cover it. Instead of scrambling or falling behind on bills, you draw $10,000 from your line of credit to bridge the gap. When the weekend rush brings in extra revenue, you repay the $10,000 plus a small amount of interest. The line is ready to use again whenever you need it.

Lines of credit are especially valuable for:

• Seasonal restaurants experiencing revenue fluctuations throughout the year
• Managing supplier payments and taking advantage of early payment discounts
• Emergency repairs like a broken fridge or stove that can’t wait
• Inventory purchases ahead of busy periods or special events
• Bridging gaps between customer payments (for catering or corporate contracts)

Key benefits:

• Pay interest only on what you use, not the entire credit limit
• Fast access to funds, often within 24–48 hours once approved
• Reusable credit as you repay, providing ongoing financial flexibility
• No need to reapply each time you need funds

Potential downsides:

• Higher interest rates than term loans, especially for unsecured lines
• Temptation to over-borrow, leading to mounting debt if not managed carefully
• Annual fees or maintenance charges with some lenders

For restaurants without stable monthly revenue, or those that simply want a financial cushion for the unexpected, a business line of credit is one of the smartest tools available. It’s flexibility and peace of mind, rolled into one.

4. Invoice Financing: Bridge Cash Flow Gaps

Invoice financing (also called accounts receivable financing) is a lesser-known but highly effective funding option for restaurants that serve corporate clients, deliver catering services, or manage large events. If your business invoices customers with payment terms of 30, 60, or even 90 days, you know the cash flow strain that comes with waiting to get paid.

With invoice financing, a lender advances you a percentage of your outstanding invoices, typically 70% to 90%, so you can access cash immediately rather than waiting weeks or months. Once your customer pays the invoice, the lender releases the remaining balance (minus fees). This allows you to keep operations running smoothly, pay staff, and fulfill new orders without being held hostage by slow-paying clients.

There are two main types of invoice financing:

1. Invoice factoring: The lender buys your invoices outright and takes over collection from your customers. You receive immediate cash but hand over control of the collection process.
2. Invoice discounting: You retain control of collections and use your invoices as collateral for a loan. Customers may not even know you’re using financing.

Fees typically range from 1% to 5% of the invoice value, depending on the lender, your customer’s creditworthiness, and how long the invoice takes to be paid.

Best For Catering and Corporate Restaurant Services

Invoice financing shines brightest for restaurants with B2B revenue streams, such as:

• Corporate catering services delivering meals to offices, conferences, and events
• Event catering for weddings, parties, and functions with post-event invoicing
• Contract meal providers supplying schools, hospitals, or corporate cafeterias
• Food trucks or pop-ups working with corporate clients or event organizers

If you’re regularly issuing invoices to creditworthy businesses, invoice financing can unlock cash tied up in receivables and keep your restaurant’s cash flow healthy. It’s especially useful during growth phases when you’re taking on more contracts but don’t yet have the working capital to support increased operations.

Just keep in mind: invoice financing works best when your customers are reliable payers. If you’re chasing down overdue invoices regularly, lenders may be hesitant, or charge higher fees to compensate for the risk.

5. Merchant Cash Advance: Fast Funding Based on Sales

When you need cash fast and don’t have the credit score, trading history, or patience for traditional financing, a merchant cash advance (MCA) can be a lifeline. MCAs are one of the quickest and easiest funding options available to Australian restaurants, but they come at a cost.

With a merchant cash advance, a lender provides an upfront lump sum, typically ranging from $5,000 to $500,000, in exchange for a percentage of your future credit and debit card sales. Instead of fixed monthly payments, repayment is tied directly to your daily or weekly card transactions. When sales are strong, you pay back more: when they’re slow, you pay less.

Approval is often granted within 24 to 48 hours, and funds can be in your account just as quickly. Lenders focus primarily on your sales volume rather than credit scores or collateral, making MCAs potentially more accessible to newer restaurants or those with less-than-perfect financials.

Repayment Structure

Here’s how repayment typically works:

• The lender takes a fixed percentage of daily card sales (usually 10%–20%) until the advance plus fees is fully repaid
• Repayment periods generally span 6 to 12 months
• There are no fixed monthly payments, repayment fluctuates with your sales volume
• Some lenders use a “factor rate” (e.g., 1.2 to 1.5) rather than an annual percentage rate (APR), which can make the true cost less transparent

When to Consider This Option

Merchant cash advances are best suited for emergency situations where speed and accessibility matter more than cost:

• Urgent equipment repairs that can’t wait for traditional loan approval
• Unexpected expenses like health department violations requiring immediate fixes
• Bridging short-term gaps during slow periods or between financing rounds
• Taking advantage of time-sensitive opportunities, such as a pop-up location or last-minute catering contract

Pros:

• Extremely fast approval and funding
• No collateral required
• Flexible repayment tied to sales volume
• Accessible to businesses with poor credit

Cons:

• Very high fees and effective interest rates, often exceeding 30%–50% APR
• Can strain cash flow if card sales are your primary revenue source
• Less transparency in pricing compared to traditional loans
• Not suitable for long-term financing needs

Merchant cash advances should be treated as a last resort or a short-term bridge, not a long-term financing strategy. If you have the time and qualifications for a traditional loan or line of credit, those options will almost always be more cost-effective.

6. Online Alternative Lenders: Quick Approval for New Restaurants

The rise of fintech has transformed small business lending in Australia. Online alternative lenders, such as Moula, Prospa, OnDeck, and Lumi, offer fast, flexible financing options that bypass the red tape of traditional banks. For restaurant owners who need capital quickly or don’t meet strict bank criteria, these lenders provide a valuable alternative.

Alternative lenders use technology and data analytics to assess creditworthiness, often approving loans in as little as 24 hours. They consider factors beyond credit scores, such as cash flow, transaction history, and online reviews, making them more accessible to startups and businesses with limited trading history.

Loan amounts typically range from $5,000 to $500,000, with repayment terms from 3 months to 3 years. Products include term loans, lines of credit, and revenue-based financing, giving restaurant owners multiple options to suit their needs.

Speed vs. Cost Trade-Off

The biggest advantage of online lenders is speed. Applications are completed online in minutes, approvals come within hours or days, and funds are deposited quickly, sometimes within 24 hours. Documentation requirements are minimal, and the entire process is streamlined and digital.

But that speed comes at a price. Interest rates and fees are generally higher than traditional banks, often ranging from 10% to 30% per annum or more, depending on risk factors. Factor rates, origination fees, and early repayment penalties can also add to the cost.

When online lenders make sense:

• Startups or new restaurants with less than 12 months of trading history
• Urgent funding needs where waiting weeks for bank approval isn’t an option
• Businesses with imperfect credit that wouldn’t qualify for traditional loans
• Flexible repayment preferences, such as daily or weekly payments aligned with cash flow
• Smaller loan amounts where the speed and convenience outweigh the higher cost

Pros:

• Fast approval and funding
• Simple online application process
• Flexible eligibility criteria
• Multiple product options
• Access to funds even with limited trading history

Cons:

• Higher interest rates and fees
• Shorter repayment terms can mean higher monthly payments
• Less personal relationship compared to traditional bank lending
• Potential for predatory lending practices, always read the fine print

If you’re willing to pay a premium for speed and accessibility, online alternative lenders can be an excellent fit. Just make sure you understand the true cost of the loan, compare multiple offers, and have a clear plan for how the funds will generate a return on investment.

7. Commercial Property Loans: Finance Your Restaurant Location

Owning your restaurant’s property can be a game-changer. Instead of pouring money into rent, you’re building equity in a valuable asset. Plus, owning your location gives you stability, control over renovations, and protection against rent increases or lease disputes.

Commercial loans allow restaurant owners to purchase or refinance the building or land where their business operates. Australian banks and commercial lenders typically lend up to 70%–90% of the property’s value, with repayment terms ranging from 5 to 30 years. Interest rates are generally lower than unsecured loans because the property serves as security.

These loans can be used to:

• Purchase a new restaurant location
• Refinance an existing commercial mortgage to secure better terms
• Buy out a landlord if you’re leasing and the property becomes available
• Acquire property for expansion or a second location

Eligibility depends on the property’s value, your business’s financial health, and your ability to service the loan. Lenders will assess rental income potential, location, zoning, and market conditions when determining loan amounts and terms.

Buying vs. Refinancing Restaurant Property

Buying property requires a larger upfront deposit (typically 10%–30% of the purchase price) and involves significant due diligence, including property inspections, legal reviews, and zoning checks. But, it offers long-term financial benefits, tax advantages (such as depreciation deductions), and operational stability.

Refinancing involves replacing your existing mortgage with a new loan, ideally at a lower interest rate or with better terms. Refinancing can free up cash for renovations or working capital, reduce monthly payments, or consolidate debt. It’s worth considering if interest rates have dropped, your business has grown, or your property has appreciated in value.

Key considerations when financing restaurant property:

• Location and zoning: Ensure the property is zoned for commercial food service and located in a high-traffic area
• Deposit requirements: Expect to contribute 10%–30% of the property value upfront
• Loan-to-value ratio (LVR): Higher LVRs mean lower deposits but may attract higher interest rates or require lender’s mortgage insurance
• Repayment terms: Longer terms mean lower monthly payments but more interest paid over time
• Exit strategy: Consider what happens if the restaurant closes, can the property be leased, sold, or repurposed?

Pros of owning vs. leasing:

• Build equity instead of paying rent
• Stability and control over your location
• Potential property appreciation over time
• Tax benefits, including depreciation and interest deductions
• Ability to renovate or modify without landlord approval

Cons:

• Large upfront capital required for deposit and transaction costs
• Tied to one location, reducing flexibility
• Property maintenance responsibilities
• Risk if the restaurant fails, you’re still liable for the mortgage

Commercial property loans are best suited for established restaurant owners with strong financials, long-term vision, and confidence in their location. If you’re planning to stay put for at least 5–10 years and want to build wealth through real estate, buying your restaurant property is a strategic move.

8. Franchise Loans: Specialized Funding for Restaurant Franchises

Opening a franchise restaurant, whether it’s a McDonald’s, Subway, Guzman y Gomez, or Boost Juice, comes with its own unique financing needs and opportunities. Franchise loans are specifically designed to help entrepreneurs cover franchise fees, fit-out costs, equipment, and working capital required to launch and operate a franchised location.

Because franchises come with established brand recognition, proven business models, and corporate support, lenders often view them as lower risk compared to independent restaurants. This can translate to more favorable loan terms, higher approval rates, and access to specialized franchise financing programs.

Franchise loans typically cover:

• Franchise fees: The upfront cost to buy into the franchise system
• Fit-out and construction: Building or renovating the restaurant to brand standards
• Equipment and fixtures: Purchasing approved kitchen equipment, POS systems, furniture, and signage
• Working capital: Covering initial operating expenses until the restaurant becomes profitable
• Marketing and launch costs: Grand opening promotions and local advertising

Loan amounts vary widely depending on the franchise brand, location, and scale, but can range from $100,000 to over $2 million for larger, high-profile franchises.

Major Franchise Financing Options

Several lenders and programs cater specifically to franchise financing in Australia:

1. Major Bank Franchise Programs

Banks like Commonwealth Bank, Westpac, and ANZ offer dedicated franchise lending divisions with specialized relationship managers who understand franchise operations. These programs often feature competitive rates, flexible terms, and streamlined approval processes for approved franchise brands.

2. Franchise-Specific Lenders

Some lenders, such as Max Funding and Scottish Pacific, focus exclusively on franchise financing and have deep expertise in the sector. They often maintain relationships with major franchise brands and can expedite approvals.

3. Franchisor Financing Support

Many franchise brands have partnerships with preferred lenders or offer in-house financing assistance. Some franchisors even provide direct loans or payment plans for franchise fees, reducing the capital burden on new franchisees.

4. Government-Backed Franchise Loans

State and federal small business loan programs (discussed earlier) may also be available to franchisees, particularly those opening locations in regional or underserved areas.

Eligibility requirements:

• Approved franchise brand: Lenders typically have a list of approved franchises they’re willing to finance
• Franchise agreement: You’ll need a signed franchise agreement or letter of intent from the franchisor
• Experience: Some lenders prefer franchisees with prior business or hospitality experience
• Financial capacity: Demonstrated ability to service the loan and contribute equity (usually 20%–30% of total costs)
• Franchisor support documentation: Business plans, financial projections, and operational manuals provided by the franchisor

Benefits of franchise financing:

• Lower perceived risk = better loan terms and higher approval rates
• Faster approval due to franchisor support and established business models
• Access to franchisor networks and financing partnerships
• Comprehensive support from franchisor during setup and operations

If you’re serious about opening a franchise restaurant, start by speaking with the franchisor’s support team, they can often connect you with preferred lenders and guide you through the financing process.

9. Peer-to-Peer and Crowdfunding: Alternative Capital Sources

Traditional lenders aren’t the only game in town. Peer-to-peer (P2P) lending platforms and crowdfunding offer creative, community-driven ways to raise capital for your restaurant. These alternative financing sources can be especially appealing for unique concepts, social enterprises, or restaurants with strong local followings.

Peer-to-Peer Lending (P2P)

P2P platforms like SocietyOne and RateSetter connect borrowers directly with individual investors who fund loans in exchange for interest returns. The platform handles underwriting, payments, and collections, but cuts out traditional banks, often resulting in competitive rates and more flexible terms.

P2P loans for restaurants typically range from $5,000 to $100,000, with repayment terms of 1 to 5 years. Interest rates depend on your creditworthiness and risk profile, but can be lower than online alternative lenders. Approval is usually faster than banks but slower than fintech lenders, expect a week or two.

When P2P makes sense:

• You have a solid credit profile but don’t want to deal with traditional banks
• You need moderate loan amounts with reasonable rates
• You value transparency and straightforward terms

Crowdfunding

Crowdfunding platforms like Kickstarter, Indiegogo, Pozible, and equity crowdfunding sites like Birchal allow you to raise capital from the public. There are several crowdfunding models:

1. Rewards-based crowdfunding: Backers contribute money in exchange for perks, such as free meals, merchandise, or VIP experiences once your restaurant opens.
2. Equity crowdfunding: Investors receive shares in your restaurant in exchange for their capital. This is regulated by ASIC in Australia and allows you to raise up to $5 million per year from retail investors.
3. Donation-based crowdfunding: Supporters give money without expecting anything in return, often for community or social-impact projects.

Crowdfunding works best when you have a compelling story, strong community support, and a unique concept. It’s not just about raising money, it’s also a powerful marketing tool that builds buzz, engages future customers, and validates your idea before you open.

Crowdfunding success tips:

• Tell a compelling story: Why does your restaurant matter? What problem does it solve or community does it serve?
• Set a realistic funding goal: Don’t aim too high or too low, research similar campaigns to gauge appropriate targets.
• Offer attractive rewards: Early-bird discounts, exclusive tastings, naming rights, chef’s table experiences
• Leverage social media and PR: Promote your campaign across all channels and engage backers regularly
• Provide transparency: Regular updates on progress, setbacks, and milestones build trust

Pros of P2P and crowdfunding:

• Access to capital without traditional lenders
• Marketing and customer engagement opportunities
• Community buy-in and support
• No collateral required (in many cases)
• Flexible or creative repayment structures

Cons:

• Requires significant effort to plan, promote, and manage campaigns
• No guarantee of success, many campaigns fail to reach funding goals
• Equity crowdfunding dilutes ownership
• Platform fees (typically 5%–10% of funds raised)
• Public scrutiny and pressure to deliver on promises

Peer-to-peer lending and crowdfunding aren’t for everyone, but if you have a strong brand story, loyal community, or innovative concept, they can provide both capital and a passionate customer base from day one.

Conclusion

Securing the right financing can be the difference between a restaurant that thrives and one that struggles to keep the lights on. Fortunately, Australian restaurant owners today have access to a diverse menu of loan options, from traditional bank loans and equipment finance to merchant cash advances, crowdfunding, and everything in between.

The key is matching the right type of financing to your specific needs, stage of business, and financial situation. Established operators with strong credit may benefit from the low rates and stability of traditional bank loans or commercial property mortgages. Startups and newer restaurants might find faster, more accessible funding through online lenders or alternative financing. And if you need flexibility, a business line of credit or invoice financing could be the perfect fit.

Before applying for any loan, take the time to:

• Assess your true capital needs: How much do you really need, and what will it be used for?
• Understand the total cost: Look beyond interest rates to fees, terms, and repayment structures
• Compare multiple lenders: Shop around to find the best terms for your situation
• Prepare your documentation: Have financials, business plans, and projections ready
• Consult professionals: Speak with an accountant, financial advisor, or business mentor before committing

The Australian restaurant industry is booming, and lenders are more willing than ever to back hospitality businesses. With the right financing strategy and a solid business plan, you can secure the capital you need to open, grow, or sustain a successful restaurant. Now it’s time to take the next step, review your options, crunch the numbers, and make your move.

Note:  This is not financial advice and is just designed to provide general information. While we run our own checks and assess each company included on our website, we may not have covered all options. If you decide to apply for a product, you will interact directly with the vendor, not AGR Technology. AGR Technology suggests that you read the appropriate PDS or offer documents before accepting any financial product offer to assess whether the products are suitable for you. Target Market Determinations are available on the provider’s website.

AGR Technology may receive a commission on sales generated by partner links on this page, but this has no influence on our opinions or evaluations and is completely free of charge to you. While we make every attempt to keep our content up-to-date this should not be taken as financial advice, be sure to seek professional advice if required.

Factors considered when writing this article:

We set criteria for picking loan platforms to analyse, such as reputation, services offered, user base, regulatory compliance, types of loans available and the years of operation along with browsing the respective websites to validate they have licences and compliance to operate in Australia, as well as other things like KYC protocols and contacting the companies.

Checked each platform for user-friendly design interfaces to ensure platforms are straightforward for beginners and more experienced customers to grasp. We obtained information about each company by visiting their separate websites, signing up for an account, reading user reviews, and looking for recent news or events related to the platforms.

Frequently Asked Questions

What are the best restaurant business loans in Australia for startups?

Startups typically benefit from online alternative lenders like Moula and Prospa, equipment finance for kitchen assets, or merchant cash advances. These options have flexible eligibility criteria and faster approval times compared to traditional banks that require 12–24 months of trading history.

How much can I borrow with equipment finance for restaurant equipment in Australia?

Equipment finance for Australian restaurants typically ranges from $10,000 to $500,000, with repayment terms of two to seven years. The equipment itself serves as security, often resulting in faster approvals and access to low-doc options for qualifying businesses.

What credit score do I need to qualify for a restaurant business loan?

Traditional banks generally require credit scores of 650 or higher for restaurant business loans. However, alternative lenders and merchant cash advance providers focus more on sales volume and cash flow, making them accessible even with lower credit scores.

How quickly can I get funding for my restaurant in Australia?

Funding speed varies by lender type. Merchant cash advances and online alternative lenders can provide funds within 24–48 hours. Traditional bank loans take several weeks to months, while equipment finance and lines of credit typically approve within one week.

Are restaurant business loans tax deductible in Australia?

Yes, loan interest payments are typically tax-deductible business expenses in Australia. Additionally, equipment finance offers significant benefits through the instant asset write-off scheme, allowing immediate deduction of eligible equipment costs rather than depreciating over time.

What is the difference between a business line of credit and a term loan for restaurants?

A term loan provides a lump sum repaid over a fixed period with set monthly payments, ideal for one-time large expenses. A business line of credit offers revolving access to funds up to a limit, where you only pay interest on what you use, perfect for managing cash flow fluctuations.

Source(s) cited:

“Affordable capital report 2018.indd” 6 Aug. 2018, www.asbfeo.gov.au/sites/default/files/2021-11/www.asbfeo.gov.au/sites/default/files/2021-11/ASBFEO-affordable-capital-for-SME-growth.pdf. Accessed 25 Oct. 2025.

7 Ways Invoice Financing Can Help Cash Flow [Online]. Xero AU. Available at: https://www.xero.com/au/accountant-bookkeeper-guides/invoice-financing-can-help-cash-flow/ (Accessed: 25 October 2025).

[Online]. Available at: https://www.selectpay.com.au/understanding-invoice-financing-a-simple-guide-for-australian-businesses/ (Accessed: 25 October 2025).

“What is Invoice Financing?” QuickBooks Australia, 6 Jan. 2025, quickbooks.intuit.com/au/blog/invoicing/what-is-invoice-financing/. Accessed 25 Oct. 2025.

Attention Required! [Online]. Cloudflare. Available at: https://lawpath.com.au/blog/tax-deductions-computers-meals-loan-car-payments (Accessed: 25 October 2025).

“Australia Hospitality Market Size, Share, Growth Analysis Report and Forecast Trends (2025-2034)” 2025-2034, www.expertmarketresearch.com.au/reports/australia-hospitality-market. Accessed 25 Oct. 2025.

lozano, Mayela. “Australia’s Hospitality Industry – Into 2030 And Beyond” Roommaster, 18 Mar. 2025, www.roommaster.com/blog/hospitality-industry-australia. Accessed 25 Oct. 2025.

Annual benchmark report [Online]. Tourism Research Australia. Available at: https://www.tra.gov.au/en/economic-analysis/annual-benchmark-report (Accessed: 25 October 2025).