Food & Beverage
Business Funding for Cafes and Coffee Shops
Coffee shops live and die by location, and the best locations come with the highest rents. Build-out costs for espresso bars, plumbing for drain lines, and commercial equipment can easily reach $100,000 or more before you serve a single cup. Daily ticket averages are low, so volume is everything, and reaching profitability takes longer than most owners expect.
Common Uses
What Cafes and Coffee Shops Use Funding For
- Fund tenant improvements including espresso bar buildout, plumbing, and electrical
- Purchase espresso machines, grinders, batch brewers, and refrigerated display cases
- Cover 3 to 6 months of rent and payroll while building a customer base
- Invest in branding, signage, and a mobile ordering system
Funding Options
Best Funding Types for Cafes and Coffee Shops
SBA 7(a) Loan
The best fit for startup coffee shops because SBA loans cover both buildout costs and working capital. The long repayment terms keep monthly payments manageable on a business with lower average ticket sizes.
Equipment Financing
Finance espresso machines, commercial grinders, and refrigeration separately from your buildout costs. High-end espresso machines from La Marzocco or Synesso cost $15,000 or more and are perfect candidates for equipment loans.
Merchant Cash Advance
Once you are operational and processing card sales consistently, MCAs provide quick cash for expansion or equipment upgrades. Repayments based on daily sales fit the steady, predictable revenue pattern of coffee shops.
What Lenders Look For
Qualification Notes for Cafes and Coffee Shops
Related Industries
Related Food & Beverage Funding
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