This Stonebend Capital Group calculator estimates the payment on a business renovation loan. Results reflect only the numbers entered; actual rates and terms come from funding partners.
Restaurant Renovation Loan Inputs: Project Cost, Term and Monthly Payment
Three inputs drive the result: the project cost you want to finance, the annual rate quoted in an offer, and the number of months. For a restaurant renovation, the project cost is the contractor's bid plus any fixtures, seating or equipment you want included, less any cash you plan to put in.
The numbers you type are worked out in your own browser, and the answer is a calculation, not an offer.
How Does a Renovation Loan Work for a Business Rather Than a House?
A business renovation loan is usually a term loan: a lump sum for the remodel, repaid in fixed monthly payments. Unlike a home renovation loan, it is underwritten on the business's cash flow, and it rarely relies on the building's value unless the business owns the building and the loan is secured by it.
Some lenders release the money in stages as the work is done; others fund at closing. Equipment that is part of a remodel, such as a hood or a walk-in, may be financed separately with equipment financing.
How to Get a Remodel Loan for a Storefront in Scotland County, NC
Getting a remodel loan for a Scotland County, NC storefront starts with a contractor's bid and the plans. A lender will read the bid, the business's bank statements and tax returns, and the lease, since a short remaining lease term weakens the case for a long remodel loan. Confirming zoning and permits first, as described in the Laurinburg zoning and permits guide, keeps the loan from closing before the work can start.
The term loan page lists what a partner may read for a remodel.
An Invented Remodel Budget Run Through the Calculator
Illustration only, invented figures: a Laurinburg, NC restaurant plans this dining-room remodel.
| Item | Cost |
|---|---|
| Flooring | $14,500 |
| Lighting and electrical | $9,800 |
| Booths and seating | $18,200 |
| Paint and wall finishes | $4,300 |
| Signage | $3,700 |
| Contractor overhead and permits | $6,500 |
| Total | $57,000 |
Entered into the calculator at an invented annual rate of 10%, the $57,000 total gives these results (our arithmetic):
| Term | Monthly payment | Total interest | Total repaid |
|---|---|---|---|
| 36 months | $1,839 | $9,212 | $66,212 |
| 48 months | $1,446 | $12,392 | $69,392 |
| 60 months | $1,211 | $15,665 | $72,665 |
A longer term lowers the monthly payment and raises the total interest, by the amounts shown.
What the Renovation Calculator Leaves Out: Fees, Approval and the Final Rate
- Origination, closing or documentation fees, which add to the cost.
- Whether the rate is fixed or variable.
- Prepayment charges.
- Any down payment or cash the lender requires you to put in.
- Whether the lender approves the request at all, and at what rate.
Add any fees from an offer to the total interest when comparing offers. The request form is the way to ask about a real loan.
See also the article on how a restaurant pays for a dining-room refresh.
By Stonebend Capital Group · Updated
