Quick answer
Cafe business loans fund espresso machines, grinders, fit-outs, second sites and cash flow through quiet weeks. Because cafes take payments every day, lenders who read card settlements can see real trading quickly. Equipment finance suits machines, unsecured loans suit smaller needs, and property-secured loans support second sites or larger refurbishments.
Key points
- Daily takings make cafes easy to assess from bank statements
- Equipment finance suits espresso machines and kitchen gear
- Second sites often need property security
- Watch daily-debit loans on thin margins
Small margins, steady takings
Cafes run on volume. Coffee margins are good per cup but thin overall once wages, rent, milk, beans and waste are counted. The upside for borrowing is that cafes take money every single day, mostly by card, so a lender reading the bank account can see the business’s real performance clearly.
What cafes typically borrow for
| Need | Common option |
|---|---|
| New or second-hand espresso machine | Equipment finance |
| Grinders, ovens, fridges | Equipment finance or small unsecured loan |
| Fit-out or refresh | Unsecured loan or property-secured loan |
| Second site | Property-secured loan plus equipment finance |
| Quiet months | Business line of credit |
How lenders read a cafe
They look at average daily and weekly takings, how steady they are across the year, wage and supplier payments, and existing debts. They will also note your lease, because a cafe with eighteen months left on its lease is a different risk from one with ten years.
The daily-debit trap
Many cafes are offered funding with daily repayments. With takings arriving every day it seems natural, and it can work for one facility. Two or three at once, though, can swallow the margin. Compare the total cost of any offer, and read revenue-based finance before signing a merchant advance.
An illustrative example
A laneway cafe owner in Melbourne wanted to replace a failing espresso machine and add a cold-brew setup. Her bank said the cafe was too young at fourteen months. Equipment finance funded the machine with the machine as security, and her strong daily card takings supported a small unsecured loan for the rest of the fit-out.
Second sites and bigger plans
Opening a second cafe doubles the risk and the fixed costs. Lenders want proof the first site is consistently profitable and that you have a manager to run one site while you build the other. Home equity, through a second mortgage of $20,000 up to $5,000,000, is often the most practical funding for a second site.
Questions to ask before you borrow
How many extra cups a day does the new machine need to pay for itself? Will the fit-out close the cafe, and for how long? Are repayments daily, weekly or monthly, and how will they feel in the slowest week of winter?
Let’s talk coffee and cash flow
Take a minute to enquire and tell us your weekly takings and what you need. No credit check to ask, someone experienced reviews it, and your data stays with us. Fund your cafe.
Frequently asked questions
Can I finance a second-hand espresso machine?
Often, yes, through equipment finance, subject to the machine's age and condition.
How much can a cafe borrow unsecured?
It is sized on monthly takings and existing commitments. Steady, growing takings support larger amounts.
Can I borrow to open a second cafe?
Yes, though lenders want to see the first site performing well. Property security often helps.
What if winter is always slow?
Use a line of credit for the quiet months and repay from summer trade.
Prefer to start now? Enquire here
About 60 seconds. No credit check when you first enquire, and a person who handles unusual deals calls you back.