In 2017, the restaurant industry provided jobs to roughly one in every 10 Americans who were employed, ranking in as the second-largest private sector employer. Why, then, do over half (59 percent) of hospitality facilities close their doors before they reach their third anniversary?

New Restaurants Face Challenges

The challenges that new restaurants face – particularly in 2018 – are formidable. Ongoing labor issue arguments with federal and local governments, the need for specialized employee advancement curriculum, competition over advancements in technology, curating menus to reflect current health trends, and so on are just a few of those challenges that restaurants face.

Why Do Banks Reject Restaurant loans?

What truly separates the chaff from the wheat in the restaurant industry boils down (pun intended) to their business lending approach. Banks love to stamp REJECTED across restaurant loans applications from restaurants for three major reasons:

  1.       The cost of operating outweighs the total gross profit
  2.       Negligent inventory control and/or account processes
  3.       A failure to evaluate the restaurant’s key finances and adjust accordingly.

Why Do Restaurants Need Funds?

The reasons why restaurants need funds far exceed the reasons they’re denied by banks. Some of the main reasons restaurant owners require business lending opportunities include:

  • Fees for license payments, such as health, liquor, music and security
  • Event marketing and advertising, including special promotions
  • Upgrading their current space and/or opening a new business location
  • Renovations
  • Investing in new kitchen equipment
  • Updating, adding to or changing the menu
  • Building up inventory, thus giving their restaurant the ability to stay open longer
  • Increasing cash flow

Find the Business Lending You Need

If only restaurant owners could snap their fingers to make the business lending of their dreams appear. Fortunately for them, there’s a better way. At Gravity Capital, we’re ready to help restaurant owners achieve the business lending they need.

Take It to the Next Level

We’re not looking for pristine credit. We’re not interested in imposing a one-size-fits all payment plan or drowning you in piles of paperwork. Our goal is to provide you with the capital you need to propel your restaurant to the next level.


Call us anytime to discuss your business lending options, or fill out an online application form to accelerate the process.

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The Future of Business Lending for Restaurants

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