Financing program
Buildout and Expansion
Buildout financing funds the period between signing a lease and serving the first table, when construction, permits, and payroll all run ahead of revenue.
What is buildout and expansion for a food business?
Buildout financing funds construction, permits, leasehold improvements, furniture, and opening inventory for a new location or remodel. Draws can be tied to construction milestones so you are not paying interest on the full amount before the work is done.
Estimates, not offers: Amounts, terms, and funding times are estimates based on programs commonly available in food service. Actual terms vary by program, lender underwriting, time in business, revenue, and credit profile. Nothing here is an offer of credit or a guarantee of approval. See source and method.
| Detail | |
|---|---|
| Typical amount | 50,000 to 2,000,000 |
| Term | 36 to 84 months |
| Time to funding | 1 to 4 weeks |
| Documents | Application, contractor bids, lease, financials |
| Cost structure | Fixed payment, often with a draw schedule |
Estimates, not offers: Amounts, terms, and funding times are estimates based on programs commonly available in food service. Actual terms vary by program, lender underwriting, time in business, revenue, and credit profile. Nothing here is an offer of credit or a guarantee of approval. See source and method.
Where it fits
- /Second locations
- /Patio and dining room remodels
- /Kitchen conversions
- /Franchise buildouts
How the program works
- /Covers construction, leasehold improvements, permits, furniture, and opening inventory.
- /Often structured alongside equipment financing so hardware and construction are separated.
- /Draw schedules can be aligned to construction milestones.
What it looks like in practice
A taqueria converts an adjacent retail bay into a 30 seat dining room.
A franchisee funds the buildout of unit 2 while unit 1 stays fully staffed.
Buildout and Expansion by business type
Buildout and Expansion questions
What does buildout financing cover?
Construction and leasehold improvements, permits and architectural fees, hoods and ventilation, furniture, signage, and opening inventory and payroll.
How much does a restaurant buildout cost?
Second generation space with an existing kitchen commonly runs 150,000 to 400,000. A bare shell can exceed 1,000,000 once hood, grease, gas, and electrical work is included.
Can I get funding before the lease is signed?
Preliminary approval is possible, but final terms usually require the executed lease and contractor bids.
Should equipment be financed separately?
Usually yes. Equipment carries longer terms at lower cost when it is financed against the asset instead of bundled into construction.
How are funds released?
Often on a draw schedule tied to construction milestones, so interest accrues on what has actually been used.