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A bakery loan is funding made available for the purpose of starting a new bakery business or purchasing an existing bakery company or franchise.

Start-up Costs

You may need a bakery loan to cover a number of initial expenses that you may not be able to afford until your bakery is up and running. These expenses include all working capital needed for property rental or purchase, utilities, equipment, wages for workers, personal living expenses, and stock.

Bakeries have specific equipment requirements that other types of companies do not need. These include industrial sized kitchen appliances, food packaging (boxes, bags, plastic wrap, foil, etc.), various stocks of ingredients, cooling racks, baking dishes, cutlery, and recipe/cooking guides. You will also need to have the proper supplies to maintain sanitation, such as hair nets, hats, gloves, detergents, etc.

Total bakery start-up costs, including licensing, can range from $10,000 to $50,000 depending on the size of the operation you want to run. Loan approval will rely on your credit history and business plan.

Buying an Existing Bakery

While obtaining a bakery loan to purchase an established bakery may be easier to do, it may cost more money upfront to do so. The major investment will be money, as opposed to a great deal of time. Buying an existing bakery will shorten the amount of time it will take to begin operating as a system will already be in place. You will already have customers, employees, and everything you need, therefore you can begin to earn money right away. This is a more attractive option for lenders, as they prefer to invest in established companies with a history of income.

Some important items to know to finance your are:

  1. How much money do you really need?
  2. Do you know your exact FICO scores?
  3. How do you plan to repay the loan?
  4. Who is going to borrow the money? You personally or another legal entity?
  5. What assets can you pledge to secure your loan?

Make sure you know you are pre-qualified before you apply. Our free business capital search engine will allow you to see the funding programs and lenders that are available to you and then you choose those you wish to apply for.


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