It’s hard enough as it is for small business owners to secure a loan through a traditional financial institution or the Small Business Administration.
But in the event you are lucky enough to be approved for such a loan, it’ll usually come with a caveat: You need to use the cash in a very specific way. That’s because banks and the SBA require applicants to indicate what they’re going to use their loans for before signing off on an approval.
Unfortunately, the restrictions placed on traditional loans put restaurant owners in a tough place. It’s good they have money in the bank. But what if they figure out a much better way to invest?
Instead of putting your restaurant in a precarious position, you can apply for an unsecured restaurant business loan that offers no such restrictions on how you spend your funds. With that in mind, let’s take a look at eight different ways you can invest alternative loans to grow your restaurant.
Your waiters, front of house staff, bartenders and kitchen workers won’t be too thrilled with you if you’re unable to pay them on time. Instead of worrying about where you’ll find the money to cover payroll every other week, an unsecured restaurant business loan gives you the peace of mind that comes with knowing you’ll be able to pay your staff in full each time checks are due.
Focusing on marketing efforts
When’s the last time you invested in marketing campaigns? Whether your restaurant is brand new or you’ve had your doors open for some time, you need to devote resources to entice new customers to give your restaurant a try—and convince regular patrons to keep coming back. You can use your small business loan to launch a new website, offer a new promotion or double down on your social media outreach, among other things.
Renovating your kitchen and dining room
You’ll have a hard time attracting customers if your restaurant looks dilapidated. Similarly, the most talented chefs and kitchen staff workers won’t want to work in a kitchen that hasn’t been updated in a decade. With a restaurant business loan, you’re able to renovate your kitchen and remodel your dining room. As a result, you’ll generate customer interest while increasing the chances of landing top talent.
Opening a new location
Let’s say you’ve had your eye on an enviable piece of property for some time. You just know that if you were to open a second restaurant in that spot, it’d be a huge success. But opening a second location isn’t exactly cheap. Since cash is tight, you haven’t been able to pull the trigger. Secure a restaurant business loan, and all of a sudden you have enough of a cushion to spread yourself thin as you expand to another location.
Buying a vehicle for deliveries
Does your restaurant deliver? If not, well, why not? In order to make it more convenient for your customers to eat your food, you may want to consider delivering to nearby residences and businesses. Sure, you can hire contractors to do the work for you in their own vehicles. But you can also buy your own delivery vehicle and brand it with your logo. That way, whenever drivers are delivering food, your car or van will serve as a rolling advertisement. Yes, motor vehicles are expensive. But you can use your restaurant business loan to secure one—and grow your business as a result.
Hiring additional staff—and paying them well
Your waiters won’t be able to provide top-shelf service every shift if they don’t have enough help. Similarly, your kitchen workers won’t be able to keep up with every order if they’re short-staffed. You can use your restaurant business loan to hire additional waiters and kitchen staff. Offer competitive wages to increase the chances you attract the most talented workers.
Paying utilities, insurance and taxes
Wouldn’t it be nice if utility companies and the taxman gave you a month off from payments every now and again? Unfortunately, it doesn’t work that way. If you’re struggling to keep up with your obligations each month, you may find the financial solace you’re looking for in a restaurant business loan. With the money from the loan in your bank account, you’ll have no problem paying your bills on time each month.
Keep your doors open during slow periods
You never know when your restaurant sales will unexpectedly take a dip. Maybe a new competing establishment opens nearby and attracts customers with a promotion, causing them to give the place a try. Maybe a storm forces you to close your business for a number of days, preventing you from being able to serve customers. Maybe the weather’s unseasonably warm and folks are deciding to grill at home. Whatever the case may be, all restaurants experience slow periods every now and again. These periods may be short-lived, or they may last much longer than expected. With a restaurant business loan, you’re able to absorb this loss of revenue while still paying your staff and meeting your other financial obligations.
Do you know how you'd use your restaurant business loans?