8 Ways to Finance Your New Mexico Restaurant


New Mexico is a beautiful part of the world, and extremely popular with restaurateurs due to the good weather, laid-back vibe of the people and the fact that it is a true melting pot. There are so many different cultures around, and as such, it’s easy to find a niche in the restaurant market and make it your own.


How do you finance your restaurant mission? In today’s financial climate it can be tricky, but there are several ways to do so if you have plenty of passion, a good business plan and you’re willing to put in the work to get a return on any investment you achieve.


Let’s take a look at some of the ways you can finance your New Mexico restaurant venture:




60% of restaurants fail within their first year. This statistic is due to the costs to get the restaurant off the ground. With this in mind, you need to have a solid investor on board to take some of the weight off your shoulders.


Take the time and effort to create a pitch-perfect business plan, find a location for your restaurant and do all of the market research you possibly can so that you know exactly what to expect when potential investors start firing questions at you. They are the first port of call for the majority of restaurateurs, and can make-or-break your dream before it gets started.


When making your deal, make sure you set a timescale for repayments that is realistic. Once your investment is paid off, you will be free to do whatever you like as a business.


Small Business Loans


The Small Business Association (SBA) are known to restaurateurs for teaming up with lenders and backing them with extra capital so that their business can get up and running. The good news here is that, should the restaurant fall through, the lender will not be forced to pick up the cost, so an SBA backed loan is less risky should the restaurant fall through for any reason. You’ll need to put up a lot of cash upfront in order to get this loan, so make sure everybody is 100% behind you before you approach the SBA.


Personal Savings


If you’re lucky enough to have access to a large amount of capital from your personal savings, this is probably the best option for you to get your restaurant off the ground. However, it is also the most risky, because if your New Mexico restaurant dream doesn’t come off, you are taking the full hit on your finances. The flipside of that coin is that, if the restaurant is a roaring success, you will be the full beneficiary. You might be able to start a franchise with all that extra cash!


Hard Money Lenders


If your credit isn’t too great and you think that the bank or potential investors might not want to back your restaurant idea, there are hard money lenders in New Mexico who could help you achieve your dream. They are known to offer loans at a better interest rate than traditional banks and are ultimately more flexible with repayment plans for the same reason. Do your research before you commit to anything, but this is definitely a solid option for restaurateurs.


Family and Friends


If you’re not a big fan of banks and investors, you could ask your family members and friends to put some cash into your dream. The pros of going down this route are that you won’t have as much pressure on you to make repayments, and interest rates are likely to be zero percent. However, there is always the risk of damaging relationships and friendships whenever money is involved, and if somebody decides to pull their money out of the venture, chances are you will have no legal standing to turn them down. It could put you in trouble at a time when you really need to financial backing.


Sell Your Assets


Similar to personal savings, but with a little more work required to get you there, selling your assets is a superb way to raise the funds required to get your New Mexico restaurant venture fully funded. Ask yourself what you truly need to keep as you work towards getting your finances together. Do you have more than one car and could you sell one of them? Do you have a home gym that is gathering dust? Could a yard sale drum up some extra cash?


Even if you don’t get the money you need to make this a solo venture, you could have more money behind you to show to the lenders and banks that you have capital and are prepared to put your own money forward in order to get the finance you need.


Credit Cards


There’s a famous story from the film industry that Kevin Smith funded his first movie Clerks by maxing out credit cards until the film was ready. Twenty-five years later and he’s still making films so that investment paid off!


Credit cards are a useful way to purchase goods, equipment, and machinery for your restaurant, and can provide you with the credit required to get an approved loan. Try and get cards with zero percent interest rates if you go down this route. However, you have to be careful that you don’t get heavily into debt when those interest rates kick in.




A couple of years ago, food trucks became hugely popular in New Mexico and across America, due to their low purchase and running costs. At the same time, crowdfunding became a huge business, with Kickstarter for creative projects and Foodstart for restaurants and food trucks being the frontrunners. Crowdfunding was a fun, engaging and interactive way of customers and food fans becoming investors in businesses, in return for rewards. If you’re looking for a way to find funding while building a fanbase (and customer base) from the beginning, crowdfunding is certainly a good option, even if it is only a small part of your financial plan.