Restaurant financing covers kitchen equipment, walk-in coolers and freezers, point-of-sale systems, remodels and payroll. Lakeshire Business Funding, a small-business funding broker in Duluth, Minnesota, explains equipment financing, term loans, lines of credit and merchant cash advances for St. Louis County food service businesses, then introduces requests to lending partners, which decide and set rates and terms.
| Food service employers | 421 in St. Louis County (Census CBP 2023) |
|---|---|
| Restaurants and other eating places | 329 of those (NAICS 7225) |
| Paid employees | 7,673 at food service employers |
| ZIP 55802 food and lodging employers | 80, 22.5% with fewer than five employees (Census ZBP 2023) |
| Common tools | Equipment financing, term loans, credit lines |
| Who decides | The lending partner |
Food service in St. Louis County, MN
St. Louis County had 421 food services and drinking places with employees in 2023, employing 7,673 people with an annual payroll of about $163.4 million (U.S. Census Bureau, County Business Patterns 2023). Restaurants and other eating places were the bulk of them: 329 establishments with 6,724 paid employees. Only 56 of those 329 had fewer than five employees, so most restaurants carry a real payroll.
Nonemployer food service businesses, run by owners alone, numbered 175 in 2024 (U.S. Census Bureau, Nonemployer Statistics 2024). In ZIP 55802, the downtown ZIP of our address, accommodation and food services accounted for 80 employer establishments in 2023 (U.S. Census Bureau, ZIP Code Business Patterns 2023).
What restaurant owners finance
- Ranges, ovens, fryers, dish machines and ventilation hoods.
- Walk-in coolers and freezers, reach-ins and ice machines.
- Point-of-sale hardware, kitchen display screens and payment terminals.
- Dining room and bar remodels, or fitting out a new location.
- Payroll and food costs during a slow stretch or after an unexpected repair.
Each of these maps to a different option, so start with the item rather than the product name.
Walk-in cooler and freezer financing
A walk-in is often financed as equipment, but it is partly a building project: panels, refrigeration units, electrical work and sometimes a floor. Partners may finance the refrigeration system and panels as equipment while treating installation and electrical work as soft costs or leasehold improvements, which some will not include. Get an itemized quote that separates the equipment from the installation, and ask the partner which lines it will finance.
If the walk-in is in a leased space, check the lease too. Some landlords treat fixed improvements as theirs once installed, which affects what a partner will accept as collateral.
POS system financing
Point-of-sale hardware can be financed or leased like other equipment, usually over a shorter term because it ages quickly. Software subscriptions and processing fees are ongoing service costs rather than equipment, so they are typically not part of the financed amount. Read the processor agreement separately from any equipment lease; they are often from different companies with different end dates.
Restaurant line of credit and working capital
A restaurant line of credit suits costs that recur in uneven sizes, such as a large food order before a catered event or repairs that cannot wait. Working capital financing suits a single gap with a known end. Partners look closely at bank statements and card processing statements for restaurants, because those show how steady revenue is week to week.
Card-sale advances offered to restaurants
Restaurants take most payments by card, so they receive many merchant cash advance offers. A merchant cash advance is not a loan; it is a sale of future card receivables collected through a holdback or fixed debits. Before accepting one, get the total remittance in dollars, check how a daily debit would sit against your slowest weeks, and compare the total with the cost of an equipment loan or credit line if one is available.
Documents restaurant partners request
- Recent bank statements plus card processor statements.
- The lease for the location, including its remaining term.
- Itemized equipment or contractor quotes.
- Details of existing equipment leases, loans and advances.
A remaining lease term shorter than the financing term is a common sticking point; partners want the business to stay in the space while the debt is outstanding. The county's business profile covers the wider economy, and funding by sector covers construction and retail.
By Lakeshire Business Funding · Updated
