Four Easy Way to Finance Your Restaurant

business-line-of-creditFinding the right cash for your restaurant can be difficult. Whether you’re just getting started or you need money to get you through a slow season, it’s important to have options. Here are four ways you can get restaurant financing fast and easy.

Traditional Bank Loans

Not all restaurants will qualify for a bank loan, but if you can, they are a good source of financing. Often, they want collateral and they may charge a high interest rate. Banks view restaurants as risky investments because of the high failure rate. However, if you’ve been in business for a few years, you may qualify rather easily.

The one major downfall to a traditional bank loan for a restaurant is the time it takes for funding. This type of loan will usually take at least 7 to 10 days after approval. Approval can take weeks, depending on what they ask for and how quickly you can gather the paperwork.

Investors

Another option for restaurant financing is an investor or a group of investors. Usually, raising money from investors means you have to give away equity in your business. This could be a good idea, but often it can hurt you more than help you.

Business Line of Credit

For restaurants looking for a financial tool to help over time, a line of credit is a good choice. This type of financings will work much like a credit card. It will allow you to take advantage of discounts for purchasing in bulk or help with short-term cash flow issues.

Merchant Cash Advance Financing

If you have credit card sales, you can get money fast with a merchant cash advance. Sometimes, this is known as working capital financing or accounts receivable financing, as well.

This type of cash advance allows you to get the money you need and pay it back as credit card sales come in. It can be helpful when you really need an influx of cash or when you have an opportunity you want to take advantage of.

These are just four of the many ways restaurants can get the financing they need. Of course, a start-up will have limited options compared to an existing restaurant, but there are still plenty of ways you can get the cash you need, fast.

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