In a survey conducted on restaurant loans, it was concluded that almost 50 per cent American adults have worked in restaurants at some point in their professional career. And out of this percentage about 40 per cent wish to own and get started with their own restaurant business.
This is the point where many face disappointment due to the expensive nature of restaurant business. Many, on the other hand, take advantage of one or more borrowing options when planning their new restaurants.
When planning to get started with restaurant business financing, the first and foremost thing that should be on top of your list is how much funding you require.
You cannot determine the amount of capital required for your restaurant business unless you determine the reason for financing. Determining why and for which department you require funding is a crucial step for growth and business financing. Whether you need restaurant financing for Construction, Renovation, Marketing or for any other need. You need to mark out your reasons for acquiring finance, before you move forward with funding options.
Explore Your Financing Options
When finalizing your options for acquiring loans, you need to consider Banks, SBA, Merchant Advisors and other small business funding resources. We have created a small guide to help you decide in choosing the best possible option.
Merchant Cash Advance:
• Easy and Fast paperwork. The process of getting a merchant cash advance is quicker and far less tedious than a bank loan with no collateral requirement.
• You do not have to put your assets, such as your home, on the line as collateral for a merchant cash advance.
• Your loan gets approved in 1 hour and you get the cash needed in just 5 days. No usage restrictions. You can use the money any, anywhere and anytime you want to. No fixed repayment schedule.
• You repay the cash advance according to your sales. The advantage of merchant cash advance is that if business is down, your repayment slows down as well. The advantage is merchant advisors offer easy repayment terms
Traditional Bank Loans
• Banks require paperwork, you have to provide collateral and personal guarantee. Do you have a house that could back your bank loan? A car? Or could someone co-sign the bank loan with you? In today’s tightened credit market, commercial bank loans and credit lines are difficult to come by, especially for small retail businesses and restaurants.
• It can take you as long as 30 days to get approved for a loan and you are less likely to get approval anyway.
• If you have a significant amount of debt, then a bank is less likely to approve you for a significant loan. Your most favorable choice of loan at that point is Merchant Advisors for the capital you require.
SBA Loan Programs
Small business is America’s most powerful engine of opportunity and economic growth. That’s where SBA comes in. SBA offers a variety of programs and support services to help you navigate the issues you face with your initial applications, and resources to help after you open for business.