Published October 13, 2015
Many people who want to open restaurants are held back from achieving their dreams by the high financial cost of entering the restaurant industry. Although it can seem daunting to get a restaurant financed, getting approved for a loan doesn’t have to be an insurmountable task. As the U.S. recovers from the financial crisis of a few years ago, lenders are now becoming more open to lending money to restaurateurs, especially for fast casual concepts.
The traditional option for restaurant financing is a Small Business Administration (SBA) loan. This is a low-risk option, but it requires borrowers to put up collateral to cover the whole cost of the loan. Other funding avenues like IPOs and crowdfunding can also be good options. IPOs have become a more common way for restaurants to get funding since the passage of the 2012 JOBS act made it easier for startups to fund themselves this way.
Regardless of the method of funding a restaurateur chooses, they need to keep basic principles about financing in mind. They should remember to not get tied up in long-term financial commitments and make realistic predictions about cash flow, and always attempt to keep costs low.
Read the full article here: Are You Following the 12 Dos and Don’ts of Restaurant Financing?
Link: http://www.qsrweb.com/articles/are-you-following-the-12-dos-and-donts-of-restaurant-financing/
12 Dos and Don’ts for Getting a Restaurant Loan
Many people who want to open restaurants are held back from achieving their dreams by the high financial cost of entering the restaurant industry. Although it can seem daunting to get a restaurant financed, getting approved for a loan doesn’t have to be an insurmountable task. As the U.S. recovers from the financial crisis of a few years ago, lenders are now becoming more open to lending money to restaurateurs, especially for fast casual concepts.
The traditional option for restaurant financing is a Small Business Administration (SBA) loan. This is a low-risk option, but it requires borrowers to put up collateral to cover the whole cost of the loan. Other funding avenues like IPOs and crowdfunding can also be good options. IPOs have become a more common way for restaurants to get funding since the passage of the 2012 JOBS act made it easier for startups to fund themselves this way.
Regardless of the method of funding a restaurateur chooses, they need to keep basic principles about financing in mind. They should remember to not get tied up in long-term financial commitments and make realistic predictions about cash flow, and always attempt to keep costs low.
Read the full article here: Are You Following the 12 Dos and Don’ts of Restaurant Financing?
Link: http://www.qsrweb.com/articles/are-you-following-the-12-dos-and-donts-of-restaurant-financing/
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