Why your type of business matters to lenders
A lender looking at a brewery sees tanks, distribution accounts and a taproom. A lender looking at a nightclub sees weekend-heavy revenue and liability exposure. A lender looking at a caterer sees booked events and receivables. The same loan request can be easy or hard depending on the industry, and on whether the lender understands it. Some lenders avoid certain hospitality businesses entirely; others specialize in them.
That is the reason for these pages. Each one explains what that type of business typically finances, which loan types fit, how lenders evaluate it, and what licensing and local factors matter in Colorado and Tennessee.
Who we finance
Restaurants themselves are covered throughout the site, starting from our home page and the business loans section, since every loan type applies to them.
What all hospitality businesses have in common
Despite their differences, lenders look at a few things across every hospitality file:
- Bank deposits. Three recent months of business bank statements give lenders a quick read on revenue, consistency and cash cushion. That is why our application starts there.
- Seasonality. Ski seasons, patio seasons, wedding seasons, festival weekends and academic calendars all move hospitality revenue. Lenders want to see that you plan for it.
- Licensing. Many hospitality businesses depend on liquor licenses and health permits. In Colorado, liquor licensing involves the state Liquor Enforcement Division and your local licensing authority. In Tennessee, the Tennessee Alcoholic Beverage Commission handles liquor-by-the-drink licenses, with local beer boards issuing beer permits.
- Existing debt. Hospitality businesses use merchant cash advances heavily, and multiple open advances are a common reason for declines.
- Management. Lenders bet on operators. Experience and depth of team matter.
What we do not finance
We focus on brick-and-mortar hospitality businesses that our lender network serves. We do not currently have a dedicated page for food trucks, because some of our lending partners restrict mobile food businesses. If you run a food truck, apply anyway and we will tell you honestly whether we have a fit. [CONFIRM WITH SCOTT: food truck and other restricted categories]
Questions owners ask
What businesses count as hospitality?
For our purposes, hospitality includes restaurants, bars and taverns, nightclubs and lounges, breweries, distilleries, wineries, coffee shops and cafés, caterers, franchise restaurants, restaurant groups and lodging such as hotels, motels and bed-and-breakfasts. These businesses share daily customer-facing revenue, seasonality and, often, liquor licensing, which shapes how lenders evaluate them.
Which hospitality businesses can you finance?
We work with restaurants, bars, nightclubs, breweries, distilleries, wineries, cafés, caterers, restaurant franchisees, multi-location groups and hotels in Colorado and Tennessee. Approval always depends on the lender and your business’s details. If your business is hospitality-related but not listed, apply and we will tell you whether our lender network has a fit.
Why does industry matter to lenders?
Industry affects risk, collateral and how revenue behaves. Lenders price and approve loans based on what they have seen in similar businesses. Some exclude certain industries, like nightclubs, entirely. Working with a broker who knows which lenders actively fund your type of business saves time and leads to better offers.
Do you finance food trucks?
Food trucks are a special case. Some of our lending partners restrict mobile food businesses, so we do not have a dedicated food truck page. Equipment and vehicle financing may still be possible through other lenders. Submit an application and we will tell you honestly whether we can help or point you elsewhere.