PMF Restaurant financing covers the money a food business needs to open, survive slow months, replace equipment or expand. In Los Angeles that includes permit and build-out costs, liquor licenses, patios and kitchen equipment. It fits restaurants with 6+ months of sales, $15K+ monthly deposits and 500+ credit. PMF LA is a broker placing $10K to $5M through 20+ funders.
Who qualifies for restaurant funding in Los Angeles
Meeting these means most of our funders will look at the file. It is not an approval. Restaurants are welcome on our panel; several funders specialize in them.
Why financing a restaurant in Los Angeles is different
Banks do not like restaurants: thin margins, cash sales, high early failure rates. In Los Angeles the costs stack higher than almost anywhere: rent on a corner in Silver Lake, a build-out that must pass LA County Public Health plan check, a liquor license that can cost more than the kitchen, and a January that empties dining rooms from Koreatown to the Westside.
So most LA restaurant owners use non-bank money at some point, and a broker matters. The funders on our panel that specialize in restaurants read card-processing statements, understand seasonality and do not flinch at a health-department remodel. Six of our 14 programs fit food businesses: working capital, revenue-based financing, equipment financing, a line of credit, SBA loans for expansion, and programs for owners with weaker credit.
PMF LA is a broker in Century City, not a lender. One application goes to the two or three funders most likely to approve a restaurant like yours, and you see the offers side by side. We have placed restaurants in nearly every dining neighborhood in LA County, from taquerias in Boyle Heights to omakase counters on Sawtelle.
Opening costs in LA: permits, plan check, liquor licenses and patios
Opening a restaurant in Los Angeles has a fixed set of gates, and each one costs money before you sell a single plate. Here is what owners finance most.
- Plan check and health permit. LA County Department of Public Health reviews your kitchen plans before construction and inspects before you open. Changes the plan checker requires, such as a bigger hood or a grease interceptor, land after your budget is set. Working capital covers the surprise.
- Build-out. Plumbing, electrical, ventilation, fire suppression, ADA work. A landlord allowance rarely covers it all. On a long lease, an SBA 7(a) or a term loan matches the term to the lease.
- ABC liquor license. California limits the number of full liquor licenses per county, so in LA a Type 47 license for a restaurant serving spirits is usually bought from an existing holder on the open market, often for a six-figure sum, on top of state fees and an escrow. Beer-and-wine licenses cost far less. Funders will not lend against the license itself, so owners typically use working capital or a term loan while the ABC transfer runs its course, which can take months.
- Patios and parklets. The City of LA made its Al Fresco outdoor dining program permanent, and owners are converting temporary setups into built patios with permits, railings, heaters and shade. Costs run from a few thousand for a sidewalk setup to well into five figures for a parklet. Equipment financing covers heaters and furniture; working capital covers permits and labor.
- Opening inventory and the first payroll before revenue. Usually the last thing budgeted and the first thing that runs short.
A brand-new restaurant with no sales history cannot get most non-bank funding on the business alone. Realistic routes: owner credit and cash, equipment financing on the kitchen, an SBA loan if the owner has experience, or opening lean and funding growth after six months of deposits.
The January–February trough and other LA restaurant cash cycles
Every LA restaurant owner knows the pattern. December is strong. Then January arrives and covers drop for six to eight weeks while rent, payroll and the tax bill do not. Koreatown barbecue houses, Valley diners, Westside brunch spots and Arts District cocktail bars all feel it.
Other cycles we plan around: award season lifts Westside catering while walk-ins stay slow; summer fills Santa Monica and Hollywood and empties family neighborhoods; Valley heat waves cut patio sales; Dodgers nights swing Echo Park and Chinatown; and quarterly sales tax to the CDTFA lands regardless.
How to fund the trough: the best time to arrange working capital is late November or early December, when deposits look strongest and approvals are easiest. A 9 to 12 month term carries the payment through spring. For owners who take a lot of cards, a revenue-based structure where the remittance falls with sales protects February. A line of credit opened in the fall and left at zero is the cheapest protection of all. What we advise against: a fixed daily remittance signed in January when deposits are at their lowest.
Kitchen equipment: the Vernon and DTLA corridor, emergencies and used gear
LA restaurants buy equipment in one place more than any other: the restaurant-supply corridor that runs through Vernon and the industrial edge of Downtown, where dealers along Alameda and Santa Fe stock new and used ranges, hoods, walk-ins and everything else. Whatever you buy there, equipment financing pays the dealer directly, usually within 2 to 5 days, and spreads the cost over 3 to 5 years.
Three situations we see every week:
- The emergency. A walk-in dies in August or a hood fan fails before an inspection. Equipment financing under about $100K often approves the same day; if the dealer needs payment first, short-term working capital bridges it.
- The refresh. A new cooking line, a combi oven, a draft system. Plan it for the fall when deposits support the approval.
- The new location package. A full kitchen for a second spot, often mixing new cooking equipment with used refrigeration. One agreement can cover both plus hood installation as a soft cost.
Used equipment is a real advantage in LA because closed kitchens come back onto the corridor. Most of our funders finance dealer-sold used equipment on somewhat shorter terms. Ask your CPA about Section 179 if you are buying in the fourth quarter.
Second locations, franchise resales and ghost kitchens across LA food scenes
Los Angeles has a dozen distinct food scenes and each one produces a different kind of growth file.
- Koreatown barbecue and cafe operators opening a second site in Buena Park or the Valley.
- Sawtelle ramen and izakaya owners adding a counter in Torrance.
- Arts District and DTLA chef-driven spots and cocktail bars taking a larger space.
- Highland Park, Eagle Rock and Silver Lake cafes opening a second store a few miles east.
- San Gabriel Valley: Alhambra, San Gabriel, Rowland Heights, Arcadia. Dim sum, hot pot, boba and bakery groups that grow by units and by franchising.
- Boyle Heights and East LA taquerias moving from a truck to a storefront.
Second location. If the first store has two years of tax returns showing profit and the owner has 680+ credit, an SBA 7(a) is the cheapest way to fund a second unit, covering build-out, equipment and working capital over 10 years. If you need to open faster than 60 to 90 days, a term loan or revenue-based financing funds the opening and the SBA loan can refinance it later.
Franchise resales. Buying an existing franchised unit from a retiring owner is one of the most common SBA files in LA. Lenders like the brand history; the franchisor approval letter is usually the slow part.
Ghost kitchens and commissaries. Delivery-only operators renting space in DTLA, Hollywood or the Valley have little collateral and a short track record, so SBA and bank money is rare. Working capital and revenue-based financing sized to platform deposits are the realistic tools.
Which funding fits which restaurant need
“Restaurant loan” usually means one of six things. This table matches the need to the tool.
| Need | Best fit | Speed | Typical credit | Why |
|---|---|---|---|---|
| Payroll, rent, the January slowdown | Working capital term loan | Same day – 3 days | 500+ | Fixed payment, 6 – 24 months, funds on bank statements |
| Fast opening or emergency, weaker credit | Revenue-based financing | 24 – 48 hrs | 500+ | Remittance can flex with card sales; highest cost, fastest |
| Kitchen, hood, walk-in, patio heaters | Equipment financing | 2 – 5 days | 600+ | Asset is the collateral; 2 – 7 year terms; vendor paid direct |
| Cushion for gaps and tax deadlines | Line of credit | 24 – 48 hrs | 600+ | Draw only what you need; open it in the fall |
| Second location, franchise resale, buying the building | SBA 7(a) or 504 | 45 – 90 days | 680+ | Lowest cost; 10 – 25 year terms; needs 2 years of returns |
| Owner credit under 580 | Bad credit programs | 24 – 72 hrs | 500+ | Deposits and card volume carry the file |
Most restaurants use two: a long-term loan for what lasts and a short-term tool for what recurs. Every California offer comes with the state’s required commercial-financing disclosure showing total cost and payment terms before you sign.
How to get restaurant funding in Los Angeles this week
- Check your options. Three questions at /apply: amount, time in business, monthly revenue. No credit pull.
- Talk to a specialist. A Century City advisor calls the same business day. Tell us the neighborhood, the concept, what the money is for and when you need it. We tell you which of the six programs fit and which do not.
- Send statements. 3 to 4 months of bank statements as PDFs, processing statements if you take cards, and the lease. Funders read deposits, card volume, negative days and time left on the lease, not your Yelp page. Equipment quotes if you are buying gear.
- Review offers. Side by side, with total payback, term, payment and the California disclosure. We say which one we would take.
- Fund. Same day to 3 days for working capital and revenue-based programs, 2 to 5 days for equipment, 45 to 90 days for SBA.
Our office is at 10100 Santa Monica Blvd, Suite 100 in Century City. We serve restaurants across LA County, Orange County and the Inland Empire, mostly by phone between the lunch and dinner rush.
Restaurant financing options in Los Angeles
| Bank loan | SBA 7(a) | Online lender direct | PMF LA (broker) | |
|---|---|---|---|---|
| Time to funds | 4 – 8 weeks | 45 – 90 days | 1 – 3 days | 24 hours – 5 days (SBA longer) |
| Amounts | $50K – $1M | $50K – $5M | $5K – $250K | $10K – $5M |
| Credit needed | 720+ | 680+ | 550 – 600+ | 500+ |
| Time in business | 2+ years | 2+ years | 6 – 12 months | 6+ months |
| Restaurants welcome | Rarely | Yes, with returns | Sometimes | Yes; several funders specialize |
| Products for restaurants | Term loan | 7(a), 504 | Usually one | Six programs |
| Cost of capital | Low | Lowest | Medium – high | Depends on program; you compare |
| Seasonal structures | No | No | Rarely | Yes: flex remittance, fall timing |
Ranges are typical, not offers. Your terms depend on the funder and your file.
How LA restaurant deals get structured
Owner converting a temporary sidewalk setup into a permitted Al Fresco patio with railings and heaters before fall. Eleven months in business, 590 score, strong card volume. Sales-percentage remittance so payments ease in January. Funded in 24 hours; heaters went on a two-year equipment agreement.
Bar bought a Type 47 license from a closing restaurant and needed cash for escrow, state fees and three months of operating costs while the ABC transfer ran. Twelve-month term with weekly payments, funded in two days on statements and the purchase agreement. Refinanced into a longer term loan once the license posted.
Family operator with two profitable tax years opening a second, larger location in Arcadia. 7(a) covered build-out, a full kitchen package and $100K of working capital over 10 years. Landlord form and hood plan check were the slow items. Closed in 75 days.
Delivery-only operator running two brands from a rented commissary needed inventory and marketing for a third brand launch. Eight months of platform deposits, no collateral. Nine-month term sized to a tenth of weekly deposits. Funded next morning.
Examples are illustrative of how PMF LA structures placements; amounts, terms and approval depend on the funder and your file. Not an offer of credit.
Frequently asked questions
How do I get a restaurant loan in Los Angeles?
Start with 6+ months of sales, $15K+ in monthly deposits and a 500+ credit score. Send 3 to 4 months of bank statements, processing statements and your lease. A broker like PMF LA matches the file to funders who specialize in restaurants. Working capital funds in 1 to 3 days; SBA loans for expansion take 45 to 90 days.
What credit score do I need for restaurant financing?
Working capital and revenue-based programs on our panel start at 500+ when deposits are steady. Equipment financing and lines of credit want 600+. SBA loans want 680+ for every major owner. For most restaurant files, card volume and bank deposits matter more than the score.
Can I finance a liquor license in LA?
Not directly. Funders do not lend against an ABC license, and in LA a Type 47 is usually bought on the open market at a high price. Owners cover the purchase and escrow with working capital or a term loan based on deposits, then refinance once the license posts. Beer-and-wine licenses are far cheaper.
Can a new restaurant with no sales history get funding?
Rarely from working capital funders, who need 6 months of deposits. Realistic routes: equipment financing on the kitchen with strong owner credit, an SBA loan if the owner has restaurant experience and cash down, or opening lean and funding growth after six months.
How fast can a restaurant get working capital in Los Angeles?
Same day is realistic under about $150K when statements arrive in the morning and you sign before the funder’s afternoon cutoff. Most restaurant files fund in 1 to 3 business days. Equipment takes 2 to 5 days because the vendor is paid on delivery.
Can I use business funding for a patio or Al Fresco build-out?
Yes. Permit fees, design, railings and labor are covered by working capital or a term loan. Heaters, furniture and shade structures can go on equipment financing over 2 to 3 years. Many LA owners finance both so the patio is open before the fall.
What is the best way to fund a second restaurant location?
If the first location has two years of profitable tax returns and you have 680+ credit, an SBA 7(a) is the lowest-cost option, covering build-out, equipment and working capital over 10 years. If you must open in under 60 days, a term loan or revenue-based financing funds the opening and the SBA loan can refinance it later.
Do funders care about my health grade or Yelp reviews?
Funders check for an active LA County health permit and no closure order; an A or B grade is fine. Reviews do not factor in. What matters is deposits, card volume, negative days, time left on the lease and existing advances.
Talk to someone who knows what January does to a dining room
Three questions, no documents, no credit pull. A Century City advisor calls back the same business day and tells you which of our six restaurant programs fit, even if the answer is to wait until deposits are stronger.
Check my options