How to Grow Your Capital with Restaurant Business Loans
Restaurant loans are an excellent way to receive the extra capital you need to grow your business. With the right surplus of funds on-hand, you’re able to easily purchase new equipment, conduct remodeling or even buy commercial equipment to enhance the functionality of your restaurant. However, receiving the capital you need can be a challenge after the collapse of the economy in 2008. Now, banks want to assume as little risk as possible when approving restaurants for loans. Despite the challenges of getting a bank loan, you aren’t out of options when it comes to getting the capital you need to grow your restaurant.
Challenges of Traditional Loans
Typically, restaurants apply for traditional loans, which generally come from banks or credit unions. However, even longtime restaurant owners are finding it more difficult than ever before to receive funds from traditional lenders. While traditional loans may offer the best rates and terms for restaurant loans, banks have strict approval requirements and tend to be slow to finance restaurants. As a result, the most popular option for restaurants to receive the capital they need is with alternative loans.
Alternative Loans for Restaurants
Essentially, an alternative loan is a merchant cash advance that allows you to get the capital you need upfront. Then, a percentage of future sales are used to repay the loan according to the repayment terms. Unlike traditional loans, you don’t need a large amount of collateral or even a positive credit history to grow your capital. Alternative lenders work with restaurants to provide the necessary funds needed to move businesses forward.
Business Loans Direct offers the alternative lending restaurants need to gain the capital necessary to grow their businesses. The application and approval process is simple and funds will be released quickly so you’re able to use the funds as needed—whether you need to make a repair or want to expand your restaurant. Then, repay the loan amount using a portion of future sales. Contact Business Loans Direct today to discuss appropriate lending options for your restaurant.