In this tough economy, it's no wonder that many restaurants are struggling financially. With high costs and low margins in the industry combined with an inability to find capital - especially when banks refuse loans for any length of time because they fear a possible collapse during covid which could lead them into bankruptcy--restaurants need all the help they can get!
National funding and no collateral with a 3.75% interest rate for small businesses or nonprofits can be great options to help cover bills like accounts payable, debts and payroll because of the SBA Economic Assistance Loans' ability offer assistance even when you're struggling financially due coronavirus that has Hindered your cash flow.
A recent survey done by trade publication Nation’s Restaurant News found out just how bad things really have gotten: nearly 80% reported being “suffering" due not only do slow business but also tight credit conditions; while 77 percent said now is "extremely difficult or very challenging."
You don’t have to give up on a loan just because your restaurant isn't traditional. Outstanding businesses these days are turning towards alternative lenders for help with the financial needs of their business, and there is no better place than our company!
As banks become less willing and more expensive to lend, new forms of financing have appeared. These alternative lenders offer small business loans, merchant cash advances as well as invoice factoring which can help you get back on your feet when faced with financial struggles!
The question for small businesses these days isn't whether they can get capital, but what type of restaurant equipment financing is right? A business loan or merchant cash advance will depend on the needs and goals of your restaurant.
A small business loan is often a great choice. Alternative lenders can usually offer up to $1 million in financing with terms anywhere between 6 months and 10 years, depending on your needs. The interest rate fluctuates between 8% - 25%. This means that you will have options for repayment including monthly payments or shorter-term plans such as paying off the principal at 5 yearly intervals if possible.
Merchant cash advances are a way to get quick funding for your restaurant. These loans work with the merchant's credit card revenues, and they can often provide access to funds that other loan options might not offer as fast or in some cases at all! With an MCA you're agreeing on paying each day until this debt is paid off which means if there was ever a time when earnings were low then using them would help you out more than others without such arrangements Most people don't realize how difficult it really is running any kind of business these days especially one where success depends largely upon what we sell-food and beverage but most importantly customer service... So make sure before opening.
With either of these options, you can help replace older equipment, redecorate, hire more staff or anything else that might be holding it back from reaching its full potential.
Leave a comment