When a new restaurant, the odds are against you..
The best way to start a new business is by doing it first on paper. The business plan research on its success rates before you dive in headfirst. You need all the facts and figures, not just your entrepreneurial skillset.
Only 20% of companies survive their first year and restaurants have an average failure rate of 60%. But there is hope: after five or ten years have passed since inception (or longer), chances rise significantly that these restaurant startups will succeed as success takes time; the financing you need now just might be different than boot strapping and self-financing that you utilized to launch your business.
The demand for loans and other types of financing is essential to the success of small businesses. With a lack in funding, it leaves them open to bankruptcy or even worse – closure. Fortunately there are many ways that you can find help with your finances as an entrepreneur without having to go through banks.
The restaurant financing options provided don't have any restrictions against hard working restaurant owners who may not be able meet all the requirements set out by bank standards.
In the event that you are in need of equipment for your restaurant, convenience store, or other foodservice establishment and have a limited budget to work with, The Restaurant Warehouse offers financing so you can get what you need at an affordable monthly rate. This way even if it takes a few months longer than expected until your business starts generating more profit so that you can afford to pay off the balance on the loan completely - which is quite common when starting out from scratch - this won't be an issue because there's no interest being charged per month while using their simple financing option.
Our Merchant Cash Advance program specializes in finding the best financing services for your needs. Get a MCA tailored specifically for your restaurants situation, such as a low credit scores or expanding to a new location.
The business line of credit is a flexible form of financing that gives you the ability to withdraw a pre-determined amount on demand. Unlike term loans, which carry interest from day one and require repayment in set installments over time, with the business line of credit there are no restrictions on when or how much can be withdrawn. However, more money will need to be paid upfront for this type of loan where as only some funds would have been needed up front if going with a term loan instead.
Leave a comment