We discussed some of the unique challenges involved in obtaining a restaurant loan. We mentioned that business owners are utilizing their business revenue in order to qualify for financing.
Here are the main programs available for restaurant loans with a quick turnaround time from application to funding. Business Cash Advance, also known as Merchant Cash Advance is an easy way for a restaurant to access working capital quickly. We look at the last few months of revenue history reflected in the business bank statements in order determine how much money you qualify for. There is a fixed payback amount which is repaid in one of two methods. Either via a fixed debit from the business checking account on a daily or weekly basis; or the advance is repaid via a fixed percentage of credit card revenue taken from every merchant batch. The repayment term is generally anywhere from 3-24 months and there are no prepayment penalties. However, the cost of capital is usually higher when compared with other types of financing. Business owners that succeed with this program typically take advances multiple times per year.
Another popular option for restaurants is a Business Term Loan. Our programs range from a 1-5 year term with interest rates starting at 5.49% APR. The term loan is repaid with either a weekly or monthly debit from the business checking account. This program requires more documentation to apply, but it is a good option for better qualified business owners with a one time use of proceeds.
Another program we offer is a Business Line of Credit. The revolving credit line ranges from $20,000-$50,000 and is repaid via weekly debit from the business checking account. This program is beneficial to business owners who have smaller, short term obligations that will be repaid quickly.
A Central Capital Group small business loan specialist is available to discuss your specific needs and to fit you with a program that works within your margins and cash flow.