Sectors: Restaurant Loans New
How to get funding for your catering business even if you have a poor credit rating
Finding funding for your restaurant can be a tricky business.
Traditional banks are often wary about the market, the costs involved and the overall competitiveness in the restaurant and catering industry. This can make achieving a loan difficult, even for established enterprises and franchisees. So what options do you have to give your funding a boost? And how would a loan help your business?
Do you need financing for restaurant equipment?
First things first, running a restaurant or catering business is difficult. With so many things to consider – overheads, profit margins, kitchen equipment, furniture, staff payroll, location, poor reviews and more – it is a business based on fine margins. This is particularly true of new and emerging small businesses. For this reason, high street banks are likely to scrutinise personal finances, looking at personal credit history and any outstanding debts.
This may rule out your small business for a traditional loan. Perhaps you have bad credit, little to offer in the way of collateral, or perhaps loans that have been offered have not been suitable. Even large food and catering franchises like Subway have struggled in the past to inject finances into their business.
The next question to ask is: what is the loan for? If it is a new business, this would presumably be for startup costs. This could be used to purchase a premises, to provide the equipment needed to prepare food, for marketing and promotion or just to get things up and running. In the case of franchisees it could be used to cover the costs of buying into the franchise itself.
For more established restaurants and catering companies, there are also plenty of options. New equipment is a common reason for loans, as well as refurbishing or extending a premises, bringing in higher quality fixtures and furnishings. Bringing in new staff or exploring other ways of bringing in more business are also reasons for seeking funding.
With all of these reasons, you might be wondering how to get a loan for a restaurant or catering business. If traditional banks will not even countenance financing huge, international chains, how can you expect to beat them to a loan? How do you go about financing a franchise if the holding company itself cannot boost their coffers?
Well if the high street lets you down, the best option is to look to the future. A merchant cash advance is a tool for businesses of all shapes and sizes, a loan that brings together technology and flexibility to give lenders the funding boost they need to build their restaurant or catering company. These loans are tailored to you and your business: repayments are based on your earnings, poor credit history does not affect your proposal and easy access to funds make them a really attractive proposition.
How External Loans Can Help Your Small Restaurant Grow
A Recipe for Success
With a straightforward process and same day approvals, Merchant Lenders is ready to help your restaurant grow to it’s full potential with a restaurant business loan. Whether it’s a cash advance for a new oven, or you’re expanding into a new location – we’re here to help.
Managing your own restaurant or café, means that you’re the most knowledgeable and skilled to make the changes needed. Merchant Lenders doesn’t interfere with your plans by making you fill out and adhere to complex contracts, our only goal is to help you maximize your restaurant’s potential with our easy restaurant cash advances.
Consider a merchant cash advance for your restaurant
So how does a merchant cash advance work? Quite simply, these loans collect the data from credit card transactions to measure the amount of money a business is bringing in. This data is then used to calculate a loan amount that can be repaid comfortably by the business, and these repayments can change to suit their needs.
This kind of loan is great for the restaurant and catering business, because such a shifting, changeable landscape would struggle high rates and structured repayments found in a typical loan. When it comes to these businesses, changing seasons, staff turnover, complaints and negative reviews or a host of other problems can cripple them if loan repayments are factored in.
So if your business is suffering a dry spell, if your staff are changing, if the competition is getting fierce or you just need to boost your coffers, a merchant cash advance is a great way. These loans also do not require collateral and your personal finances do not factor into your proposal. Flexible, fast funding that is just the right amount for your business – what more could you ask for?
Merchant cash advances can also be tailored for more specific financing purposes. In restaurants and catering companies, this typically applies to equipment financing (compared to say loans for shops and ecommerce retailers where there’s a focus on technology and stock). These loans are often easier to obtain than more general financing options as the equipment being purchased can be used as collateral against the loan. The cost of the equipment in question and the monitoring of card purchases means a decision can be made in minutes.
Financing a franchise is another good use for a merchant cash advance. Again, even an established brand name in a downtown location may still struggle to attract investment from traditional means. The problem facing many franchisees is that the fees charged by larger companies can be excessive.
Why Merchant Lenders is Right for You
Offering up to $2 million in restaurant loans per customer, the possibilities for your business’ growth are endless. Not only does Merchant Lenders charge up to 40% less than other similar companies, but we’ll also transfer any of your standing restaurant business loans from our competitors so you can start saving big!
With a merchant cash advance, the individual needs of a franchisee can truly be taken into account. Changing market conditions, problems outside of the individual’s control, costs associated with administration and other unique factors can all be worked into the agreement. This makes obtaining funds quickly when you need them a breeze.
Bad credit, an underperforming business or a franchise agreement should not push you away from your dream restaurant. Running any small business can be a struggle and the restaurant market is a tricky one to break into. But these are exactly the conditions where a merchant cash advance loan can give your small business the boost it needs to take it to the top.
When it comes to equipment, these large expenses would be beyond most new businesses or restaurant owners who are suffering from a poor credit score. When traditional funding cannot be tapped into, and when other options – from risky loans to Kickstarter campaigns – have all been attempted, a merchant cash advance loan is the ideal choice for your business.
For the perfect way to make your catering business a culinary success and for your restaurant to gain rave reviews, a merchant cash advance loan will give you the money you need fast and repaid at a rate that suits your business. You can apply here.