The best loan for a taqueria or Mexican restaurant depends on the expense. Merchant Fund Express, our recommended funder, is best if you sell every day and need capital fast; National Funding fits new or used kitchen equipment; Credibly serves restaurants with 6 months of history and solid card sales; a Bank of America line suits restaurants with an established banking history; the SBA 7(a) is for buying the building or a major remodel; and the SBA microloan helps a stand or food truck make the jump to a storefront on a small budget.
A taqueria has strengths a funder knows how to read: daily sales, loyal regulars and food margins that hold up. It also has challenges: a lot of cash that does not always reach the bank, equipment that runs twelve hours a day, and seasons that swing up and down. This guide is built for that reality.
Key takeaways
- Deposit your cash. To a funder, sales that never show up on your bank statements barely exist.
- National Funding finances new or used equipment up to $150,000, up to 100% of the cost with no down payment required, according to its site.
- Credibly lists advances from $5,000 to $600,000 with 6 months in business, $20,000 in monthly sales and credit from 550.
- To buy or remodel your space, if you qualify, an SBA loan usually costs less, but it now requires owners who are U.S. citizens or nationals.
- Our recommended funder often decides in 2 to 4 hours, accepts FICO 500+ and offers Spanish-speaking support.
- Do not finance a multi-year remodel with a short daily-payment product.
The 6 best loans for taquerias and Mexican restaurants
- Merchant Fund Express (recommended funder). Best for taquerias that sell every day and need money in days, not weeks: inventory for a busy season, an urgent repair, opening a second service window or covering a slow month. Amounts from $5,000 to $5,000,000, decisions often in 2 to 4 hours, credit from FICO 500 and, in most cases, no collateral. It reviews your sales and deposits, not just your score, and offers Spanish-speaking support. Applying is free and does not affect your credit.
- National Funding (equipment). Best for the kitchen: flat-top, al pastor trompo, fryers, refrigerated prep tables, walk-in cooler, exhaust hood or tortilla machine. It finances new or used equipment up to $150,000, up to 100% of the cost, with no upfront fees and no down payment required. For working capital it offers $5,000 to $500,000 and says most of its customers have a FICO of 600 or higher (per its site, checked October 2026).
- Credibly (merchant cash advance). Best for restaurants with 6 months or more and strong card volume. Advances from $5,000 to $600,000, terms of 3 to 24 months and automatic daily or weekly payments. It asks for 6 months in business, $20,000 in average monthly sales, a 550 credit score or higher, and sales deposited into a bank account. Its site has a Spanish version (per its site, checked October 2026).
- Bank of America (Business Advantage line). Best for established restaurants. Its unsecured line starts at $10,000 and asks for 2 years under the same owner and $100,000 in prior-year sales; the annual fee is waived the first year (per its site, checked October 2026). If you already bank there and meet the bar, it is usually cheaper than online funding.
- SBA 7(a) loan. Best for buying the building, a major remodel or buying another restaurant, with long terms. Maximum of $5,000,000 through an approved lender. Since March 1, 2026, 100% of direct and indirect owners must be U.S. citizens or nationals with their principal residence here; permanent residents can no longer own any share.
- SBA microloan. Best for the jump from a stand or food truck to a small storefront. Up to $50,000 for equipment, furniture, inventory and working capital, through SBA-approved community nonprofits. According to the SBA, rates usually run from 8% to 13% and the maximum term is seven years; it cannot be used to buy real estate or pay off debt.
Comparison table for taquerias
| Option | Best for | Speed | Key requirements | Collateral |
|---|---|---|---|---|
| Merchant Fund Express | Fast capital, seasons, repairs | Decision often in 2–4 hours | FICO 500+, sales and deposits | Not required in most cases |
| National Funding (equipment) | New or used kitchen equipment | Funds in as little as 24 hours after approval | Most customers FICO 600+ | The equipment itself |
| Credibly (advance) | Strong card sales | Approval in as little as 2 hours | 6 months, $20,000/mo, 550+ | Future sales |
| Bank of America (line) | Established restaurant | Days | 2 years, $100,000/yr | Unsecured (Business Advantage line) |
| SBA 7(a) | Building, remodel, acquisition | Weeks or months | Citizen or national owners | Usually, when available |
| SBA microloan | Stand to storefront | Weeks | Varies by microlender | May be required |
How we chose
How we chose. We do not give ratings or points. We compare every option on the same criteria: speed, minimum time in business, minimum credit, whether it accepts ITIN or no-SSN owners, required documents, amounts and whether collateral is required. Company facts come from each company's official site, and if we could not confirm something we left it out. Read the full methodology in how we rank business funding options.
For Mexican restaurants we give extra weight to two things: how each option treats cash sales, and whether the term matches the useful life of what you buy. A trompo lasts years; a weekend meat order sells through in days.
We also look at seasonality. Many taquerias sell more around Mexican Independence Day, Mother's Day or December, and less in some winter months or when road work blocks the street. An option whose payments flex with sales, or a line of credit you draw only in the slow month, lets you breathe; a high fixed payment all year does not. That is why there is no single "best" loan, only the best one for each expense.
The cash question: what you need to know
Many taquerias take a big share of sales in cash. The problem is that funders approve based on what they see on your bank statements. For example, if you take in $1,000 in cash and deposit $300, to them you sold $300.
- Deposit everything, daily or weekly. Three to six months of complete deposits can change your approval.
- Send card sales to the business account, not a personal one.
- Report your real sales on your taxes. Banks and the SBA ask for returns, and if they do not match your deposits, that is a problem.
- Keep reports from your point of sale (Clover, Square, Toast or another). They help show daily volume.
This is not busywork. It is the single biggest lever on how much you can be offered. For more on funding built for this kind of business, see taqueria and Mexican restaurant funding.
What to finance with what
| Taqueria expense | Product that usually fits |
|---|---|
| Trompo, flat-top, fryer, refrigeration | Equipment financing |
| Hood, fire suppression, gas line work | Equipment or term loan (permits and inspection required) |
| Inventory for Independence Day, Christmas or Lent | Working capital or line of credit |
| Remodeling the dining room or expanding the kitchen | Term loan or SBA 7(a) |
| Opening a second location | SBA 7(a), term loan or working capital, depending on the amount |
| Buying the building | SBA 7(a) or 504 |
For the kitchen, also compare equipment financing for restaurants. For the full industry picture, read the best restaurant business loans.
Common taqueria mistakes
- Paying for a remodel with a short advance. If the daily payment is high and the work closes your dining room for a few weeks, you run out of air.
- Opening a second location without numbers from the first. Build a typical month: sales, food cost, payroll, rent. Then you know how much to ask for.
- Buying equipment without pricing used. Used restaurant equipment is often in good shape and can cut the amount a lot.
- Forgetting permits. A new hood or gas change needs permits and inspection; put them in the budget.
- Signing without reading it in your language. Ask for the contract to be explained in Spanish if you prefer, and get the total cost in writing.
Our recommendation
If you are buying the building or doing a major remodel and you qualify, an SBA 7(a) is usually cheapest. For the kitchen, equipment financing. For the jump from a stand to a storefront on a small budget, the SBA microloan.
If your sales are steady and you need the money this week, our recommended funder is Merchant Fund Express. You can apply online in minutes; it is free and does not affect your credit. Leer en español.
Frequently asked questions
Can I get a loan if my taqueria is mostly cash?
Yes, if you deposit that cash. Funders look at your bank statements, so cash you keep out of the bank does not count. Start depositing all of your sales today and in three to six months your profile will look very different. Keep your point-of-sale reports too.
Can I finance a new trompo and flat-top grill?
Yes. For kitchen equipment, equipment financing is usually the cleanest route: the machine backs the loan and the term matches its useful life. National Funding, for example, finances new or used equipment up to $150,000 with no down payment required, according to its site.
What do lenders ask for on a restaurant loan?
Generally 3 to 6 months of business bank statements, ID, an EIN, business or DBA documents and, for banks or the SBA, tax returns. For equipment, the seller's quote. For a second location, the lease and the numbers from your first one.
Can I get an SBA loan with a green card?
Not for a 7(a) or 504 right now. Since March 1, 2026, 100% of the owners of an applicant for those loans must be U.S. citizens or nationals with their principal residence here. Other funding options remain open. If you have questions about your own status, talk to an immigration attorney about your situation.
How fast can a restaurant get funded?
Our recommended funder often decides in 2 to 4 hours. Credibly says it can approve in as little as 2 hours, and National Funding mentions funds in as little as 24 hours after approval. A bank takes days or weeks, and the SBA takes weeks or months.
Is there restaurant funding with Spanish-speaking support?
Yes. Merchant Fund Express offers Spanish-speaking support, and Credibly's site has a Spanish version. With any funder, ask for the contract and the total cost to be explained in your language before you sign.