Business Loans For Restaurants

If you own a restaurant business, you would know that it is not a walk in the park, as it involves juggling many tasks – from dealing with fluctuating food costs and seasonal income to managing dozens of workers. You also need to make heavy investments in equipment and inventory, and constantly hire and train restaurant staff as the turnover is fast and regular.

It is costly, in terms of both time and money, to market the restaurant and invite new clients, as well as engage existing patrons. Because of the unpredictability of restaurant sales, you may need to obtain a small business loan from time to time to fill your cash flow gaps.

For traditional lending institutions, a restaurant business is considered risky. Thus, some lenders may need to see your capability – from a solid credit rating and experience in the business to a sound business plan. Some may even ask you to show 20% to 30% of the loan amount you are seeking in cash.

We at Fast Direct Funding aim to cut through all the red tape, and help you get the loan you need fast. We facilitate business loan applications by making the entire application process fast and fully automated. We will only ask you for basic information, and we will review your business performance quickly. This way, you will gain access to the funds you need as soon as possible. The maximum loan amount is $150,000.

How You Can Use Your Restaurant Loan
You can use the loan for various business purposes. These include:

• Meeting seasonal needs – Restaurants typically go through seasonal demands. Thus, it is difficult to keep a positive cash flow all year round. As a business owner, you may need to get additional funds to use in preparing for the coming busy season. You can use the restaurant loan to invest in new equipment, procure more stocks, or embark on an ad campaign for the peak season. You can also use proceeds of a small business loan to cover immediate, everyday expenses.

• To Repair, Upgrade, or Acquire Additional Equipment – Old equipment will eventually need to be retired, repaired or updated. This can happen earlier than expected. To make sure your operations continue to run smoothly, you can use the loan. You can also buy new equipment or open a new branch to meet the anticipated higher demand during the busy season.

• To Launch a Marketing or Website Campaign – While most businesses hope to experience a positive word-of-mouth advertising, majority of restaurant businesses still have to develop effective external campaigns to rake in new clients, while keeping their current customers satisfied.
Restaurant loans can give additional funding to cover ad expenses and run effective customer loyalty promotions. You can use the loan to hire professionals to take beautiful pictures of your space, as well as menu items that you can post in your website and social media.

• Growing Your Business – While business expansion and growth are always exciting, they can also be quite costly – especially when you can’t handle the financial requirements that come with such events. Getting a business loan can help cover the additional costs for hiring new staff, buying new equipment and inventory, prepping or renovating your space, and revving up your marketing efforts – all in anticipation of the expected increase in sales and operations.

Types of Restaurant Loans
It is not easy to run a restaurant business. It can likewise be difficult to get the required funding. However, there are some things that you can do to gain the favor of lenders: a sizeable down payment, a valuable collateral, a solid credit score, and proven experience in the restaurant business.

When weighing your available funding solutions, one of the most crucial decisions is the choice of lender. Carefully review all your options to make sure you find the one that best suits your needs.

Restaurant Equipment Loan
The necessary expenses to keep your restaurant efficient and up-to-date usually comes with a sizeable expense. For instance, if you want to upgrade to a 12-burner cooktop or you want to offer authentic Italian pizza, you may need more funds to make these visions a reality.

Luckily, you can find loans that cater specifically for restaurant equipment. The loan is designed to cover equipment purchases for restaurants. The loan proceeds is usually enough to cover only the cost of the equipment plus taxes. You will need to shoulder the additional expenses like handling, delivery, and installation.

Interest rates for equipment loans are typically fixed, which allows you to plan your future repayments. Since the term is usually 3 years, you have enough time to make a return on investment that will help you pay the loan.

Another way to fund you equipment acquisition is through leasing. You’ll need to pay a monthly fixed amount to use the equipment. You will own the equipment at the end of the term when you have paid the lease in full. While this is a good option for restaurant equipment funding, the requirement to pay a lump sum amount near the end of the term can be risky.

Restaurant-Specific Loans
This type of loan is usually offered by traditional lending institutions like banks. You can use the loan for any financial need of your restaurant like renovating your place, upgrading or acquiring your new equipment, restocking, or hiring additional staff. The loan term and interest rate is determined by the amount of loan. Usually, a bigger loan comes with a longer term, and lower interest rates.

Here at Fast Direct Funding, we are committed to supporting small businesses, including those in the restaurant industry. Getting a small business restaurant loan from an alternative lender like us can help your business obtain the additional capital your restaurant needs immediately, and set up your future success.