Running a catering business means juggling tight timelines, high expectations, and fluctuating demand. Whether you’re preparing gourmet spreads for weddings or corporate buffets, staying competitive often requires new equipment, extra staff, marketing investment, or inventory in advance of big events. If you’re ready to scale, having the right capital matters—and that’s where funding options for catering companies can make all the difference.
From small business loans to equipment financing and lines of credit, there are multiple ways to fund your next growth move. Here’s how to find the right fit.
Catering is a high-pressure industry. You’re often spending money weeks in advance—on food, rentals, or staff—before you ever get paid. Growth only adds to the upfront expenses. Funding can help you:
Accept larger or more frequent event bookings
Hire and train reliable event staff
Upgrade kitchen or transportation equipment
Expand your marketing and sales efforts
Rent or renovate a commercial kitchen
Purchase bulk inventory at lower costs
If your business is profitable but cash is tight, external financing gives you the flexibility to grow without compromising service quality.
1. SBA 7(a) or Microloans
Backed by the Small Business Administration, these loans offer favorable rates and longer terms.
Loan amounts: Up to $5 million (7a), or $50,000 (Microloan)
Terms: Up to 10 years for working capital
Interest rates: Generally 7%–11%
Best for: Equipment, marketing, expansion, or hiring
Use SBA Lender Match to connect with approved lenders who work with catering companies.
2. Equipment Financing
Need a new industrial fridge, delivery van, or warming cabinet? Equipment loans help you spread the cost over time.
Loan terms: 2–7 years
Fixed monthly payments
Equipment acts as collateral
Ideal for: Ovens, prep tables, refrigerated vans, POS systems
3. Business Line of Credit
This flexible option lets you borrow as needed and only pay interest on what you use.
Great for cash flow gaps
Revolving credit you can reuse
Fast access to working capital
Perfect for seasonal needs or event-based business models
4. Short-Term Business Loans
Quick access to lump-sum cash for specific projects or urgent needs.
Terms: 3 to 24 months
Faster approval than SBA loans
Higher interest but fast funding
Good for: Staff hiring ahead of busy seasons, marketing campaigns, event deposits
5. Invoice Financing
If you're waiting weeks to be paid after events, invoice financing helps you unlock that income now.
Get 80–90% of the invoice value upfront
The rest (minus fees) comes when the client pays
Best for: Corporate catering with long payment cycles
6. Merchant Cash Advances (Use Caution)
MCAs offer quick cash based on future credit card sales—but often come with very high fees.
Fast funding
No fixed monthly payments (repaid via daily sales % cut)
Very expensive—use only for emergency short-term needs
Define what you need funding for (equipment, hiring, marketing, etc.)
Review your financials and credit score
Create or update your business plan
Estimate how much funding you need and what terms you can handle
Compare loan types and lenders (banks, online lenders, SBA options)
Gather required documents (bank statements, tax returns, revenue reports)
Apply and use funds strategically to maximize ROI
A catering company in Atlanta specializing in high-end corporate events wanted to expand into weddings. They used a $75,000 SBA loan to build out a secondary prep kitchen, hire part-time servers, and launch a local ad campaign. Within 6 months, wedding bookings increased by 40%, and the loan was on track to be repaid early.
Borrowing too much: Only take what you can repay comfortably
Ignoring the fine print: Understand fees, APR, and repayment terms
Underestimating ROI: Make sure funding leads to measurable growth
Not planning for seasonality: Factor in slower months when forecasting cash flow
SBA Loans Overview
RestaurantOwner.com for financial templates and planning tools
Kiva U.S. for 0% interest microloans
Local Small Business Development Centers (SBDCs) for funding help and coaching
With the right funding strategy, your catering business can take on larger contracts, expand into new markets, or invest in equipment that improves efficiency. Whether you're looking to scale up or streamline operations, these funding options for catering companies give you the financial foundation to grow confidently and sustainably.