Restaurant Loans

Restaurant loans can be difficult to finance. Most traditional banks will simply pass on helping to provide financial assistance to restaurants due to the ongoing high risks. Owning and running any type of restaurant is an extremely demanding job, one that goes well beyond the traditional nine-to-five business hours.

Even restaurants that are turning profits are considered high-risk financial investments by traditional banks. Most restaurant owners are required to turn to alternative financing capital options, whether they need an injection of cash funds or are simply looking to expand or improve their restaurant operations.

Potential loan options are vast, but do include the following short term business capital loans:

• With alternative hard money financing, borrowers can obtain up to 200% of their gross average restaurant income. This is in the form of a cash advance loan.
• The average repayment terms for cash advance loans varies from two to 12 months. Extensions may be possible, if needed. The benefit of working with a hard money lender is that approval is granted within hours and requires very limited documentation and paperwork. No application fees or upfront fees are required and no out-of-pocket capital is necessary.

Financial experts that have restaurant business experience decide repayment options. These repayment structures are customized to meet each restaurant’s cash flow needs, which means they can specify repayment structures against receivables or credit card sales. The restaurants’ repayments match their incomes, which helps prevent any loan servicing or financial difficulties. Payments that directly tie to sales allow restaurants to make a percentage of payments based on profits, preventing unnecessary and burdensome payments that are not realistic to make for growing businesses that experience fluctuations in earnings.

Capital funds can be used for a variety of business growth opportunities. These monies are perfect for purchasing additional inventories, expanding restaurant businesses for longer hours or more days, hiring staff to help fill schedules, training existing staff as marketplace demands charge, renovating workspaces and even remodeling existing restaurant facilities.

Offering lending in all 50 states, they abide by each state’s specific lending specifications and regulations. Each lender is state-licensed so they are experts in each area’s lending processes. Additionally, repayment structures also vary and it is best to discuss state-specific requirements with state lenders.

Approval is often granted within 24 hours and funds can be available in as few as 72 hours, which allows restaurants to be off and running in no time.