START

Subscribe to Email Updates

Simple Loans for Restaurant Owners

simple_loans_for_restaurant_owners.jpg

Whether they’ve been in business for years or are just opening their doors for the first time, restaurants often encounter cash shortages.

Owners of brand-new restaurants have to figure out how to foot the bills relating to forming a new LLC, paying rent and utilities, renovating the dining room and bar area, installing new equipment in the kitchen, making sure the restrooms are up to speed, acquiring top-notch food ingredients and beverages, and, of course, hiring a friendly and skilled staff.Even seasoned restaurateurs aren’t out of the woods either. At any given point in time, they may have to absorb unforeseen repair costs, deal with sudden increases in their food and drink costs, cover bills related to renovations or the opening of additional locations, pay marketing expenses and even legal fees in the event that a patron decides to file a lawsuit, and make investments to stay current with technology.

When money’s tight, restaurant owners have a number of options at their disposal. They could decide to raise prices—but at the risk of alienating some of their more cost-conscious customers. They could decide to bring in outside investors—but that would entail giving up at least a sliver of control and a chunk of profits. They could decide to move to a cheaper location—but that might discourage customers from making the trek.

Download The Ultimate Restaurant Marketing Guide »

Are you a restaurant owner who’s struggling with cash shortages? Instead of risking alienating your customers or sacrificing any percentage of ownership of a restaurant you’ve worked so hard to build, consider plugging your cash gaps with an unsecured business loan from an alternative lender—the simplest answer to your financial problems.

While you might think that it makes more sense to apply for a loan through a bank, it’s virtually impossible for owners of new businesses to be approved for financing. In the aftermath of the most recent financial collapse, banks have become increasingly hesitant to give out money to small-business owners; it’s pretty much impossible for brand-new restaurants to qualify for funding. In the rare event they do sign off on an application, it’s guaranteed that the applicant has a pristine credit score and was able to produce a slew of favorable tax documents and other financial information.

It’s much easier for the owner of an established restaurant—and especially the owner of a brand-new restaurant—to qualify for an unsecured business loan. These financial vehicles are available from non-bank lenders that are much more flexible when it comes to helping out small-business owners. Generally speaking, these alternative lenders are willing to look past lower credit scores and offer loans to businesses that have demonstrated strong cash flow.

Whereas banks usually require borrowers to put up collateral (e.g., a house, car, or expensive piece of machinery or equipment) in order to secure a loan, non-bank lenders offer no such requirement—which means that if business goes irreparably bad and you’re unable to repay what you’ve borrowed, you won’t have to worry about losing your home. (For these reasons, unsecured business loans typically have higher interest rates than traditional bank loans.)

But the benefits of unsecured business loans don’t stop there. The application process is incredibly quick. In most instances, you should be able to submit your application within 15 minutes. Assuming you’re approved, money can appear in your bank account within 24 hours.

On the other hand, in order to secure a loan through a bank, your restaurant would have to have been open for a few years, and you’d need to assemble a boatload of paperwork: business plans, financial documents, tax information, and more. Next, you’d have to navigate an elaborate, time-consuming process. On the off chance you were lucky enough to be approved, it could take as long as 60 days before even a penny is deposited in your bank account.

As a restaurant owner who needs cash, you can’t afford to wait around for a bank to make a decision. When you apply for an unsecured business loan through a reputable alternative lender, you won’t have to. Money will be available quickly, and you’ll be able to invest in your restaurant right away.

The end result? A restaurant that’s more financially secure—which translates into more and more customers who are increasingly satisfied and can’t wait to come back.

ins_and_outs_of_qualifying_for_a_small_business_loan