CFACommercial Funding Advisory
Food & Beverage business

Food & Beverage

Business Funding for Catering Businesses

Catering companies carry high upfront costs for food, labor, and equipment on every event, but final payment often does not arrive until after the event concludes. Large corporate contracts and wedding bookings require you to commit thousands in food costs weeks in advance. Owning your own kitchen, transport vehicles, and serving equipment is the difference between surviving and thriving in catering.

Common Uses

What Catering Businesses Use Funding For

  • Purchase commercial kitchen equipment, chafing dishes, and serving ware for large events
  • Fund food and supply costs for booked events before client deposits cover the full amount
  • Buy or lease refrigerated transport vehicles for food delivery to event venues
  • Renovate or build out a commissary kitchen to increase production capacity

Funding Options

Best Funding Types for Catering Businesses

Business Line of Credit

Draw funds to cover food and labor costs in advance of each event, then repay when the final payment arrives. A revolving line matches the project-based nature of catering perfectly.

Equipment Financing

Finance commercial ranges, convection ovens, blast chillers, and transport equipment. Catering equipment is durable and holds value, making it straightforward collateral for lenders.

Invoice Factoring

Factor outstanding invoices from corporate clients who pay on net-30 terms. Corporate catering contracts are steady revenue that factoring companies like because the accounts receivable are reliable.

What Lenders Look For

Qualification Notes for Catering Businesses

Health department permits, food handler certifications, and a licensed commercial kitchen are baseline lender requirements
Showing a calendar of booked events and signed contracts demonstrates revenue predictability
Lenders value recurring corporate catering contracts over one-off event work because of the revenue consistency

Ready to Explore Funding for Your Catering Businesse Business?

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