The Benefits of Restaurant Loans
Are you thinking of opening a restaurant? Or perhaps you’ve already established an eatery and wish to see it grow? Then you’ll need a source of working capital.
Of course, finding the funds isn’t easy. Oftentimes, you need the resources you have for daily operations. That leaves restaurant loans as the best option.
First and foremost, you get to put funding where it’s needed most. That includes purchasing a new location, renovating a current one or obtaining land for new construction.
Of course, growing a business isn’t just about physical expansion. You can also use funds for inventory, ensuring that you always have the foods you need. You can also put funds towards payroll and hire more staff for busy hours.
Multiple Financing Options
One of the best things about restaurant loans is the many forms they come in. With so many options, you can find the perfect financing to meet your restaurant’s unique needs.
Additionally, there are many places to find financing. You can partner with a traditional bank or credit union, for example, or seek out a third party lender. Alternative lenders are a great choice if you need money quickly, as they’re known for their speedy processing times. In some cases, you can get cash in as little as 24 hours. They may also offer financing options that traditional lenders don’t.
Merchant Cash Advance
A merchant cash advance is a good option for business owners who don’t want to risk collateral. Instead of offering up assets like a traditional loan, a merchant cash advance allows you to borrow against future credit card sales. Then, as you make profit, the borrowed amount is paid back.
This may be especially beneficial for restaurants given how much of their sales are made by card. Most lenders can work with a variety of credit card brands, allowing you to continue business as usual while getting a new resource.
If your enterprise employs less than 500 people, you may benefit from a SBA loan. This financing is specifically designed to help small businesses that may not otherwise qualify for traditional loans. An accredited SBA lender can help you find the perfect financing for you, including options from the 7a and 504 programs.
Unsecured Business Line of Credit
If you want the ultimate flexibility, an unsecured business line of credit is the answer. There are no collateral requirements, which means you don’t have to risk assets, and you can draw on the line whenever you want. That gives you control over how much interest you owe and when you access the funds.