Who doesn’t love food? We all do even if we may have different preferences. Think about it, the idea of your favorite food item is enough to get you craving. Is it burgers and fries, a giant cup of froyo, a platter of chicken wings, slices of pizza, a plate of Bolognese pasta, a slice of red velvet cake or a yummy cup of your favorite frappe? Because of this love affair and actual need for food, loads of food businesses have sprung up like mushrooms and we couldn’t be any happier both as consumers and entrepreneurs. Should you plan to set one up for your own or fund one that you already have then loans are a common thing to think about. But what benefits do small business loans for restaurants bring?
- ADDED EQUITY AND CAPITAL – All businesses need financial resources but such is not always readily available or enough. Small business loans provide for the said shortage coming in with various types, terms, rates, uses and advantages.
- FLUIDITY IN OPERATIONS – With equity come fluidity in operations. Having ample resources will aid in ensuring that all processes and procedures go as they should be. Any forms of delay are never welcome when it comes to restaurants as your customers will not be happy with their hungry stomachs.
- BETTER AND UP TO DATE EQUIPMENT – Other loans are used to acquire necessary equipment or install any updates. Better assets are always a good thing. They aid in efficiency and better productivity. Besides, the food industry has certain requirements and restaurants need to comply with this. Getting better and modern equipment aid in this.
- STRENGHTENED VENDOR RELATIONSHIP – Having enough cash to pay one’s vendors and suppliers is a must. Payables are fine but there are cases that call for bulk and heavy purchases. Having ample resources to pay your vendors can help strengthen both parties’ relationship with one another and promote more future transactions.
- IMPROVED QUALITY – Small business loans for restaurants help improve quality in various ways. As mentioned earlier, they increase efficiency, productivity, effectivity and timeliness of operations, productions, procedures and the overall business in general with the help of added equity in times of need. Improved quality is beneficial in the sense that customers will flock, thereby rising sales and ultimately profits. Now, what entrepreneur does not want that?
The hotel industry is one of the booming parts of the business and tourism sector today. It cannot be denied that humans have a natural thirst for wanderlust and adventure. In fact in 2013 alone, it was recorded that over 3.1 billion passengers have flown all over the world. That would be an average of 8 million people per day. Such is even expected to grow. Tourism creates business and one of them pertains to hotels. This makes such business venture a very appealing one to most entrepreneurs but the capital required for one may necessitate the need of business loans for hotels. How do you get one and use it to your advantage then? Worry not. We’ve got you covered with the following tips.
TIP # 1: Make careful study and analysis first. It is important to determine if you really need to get a loan, what type will you need, what your repayment scheme is and all that. In short you have to carefully study to better prepare.
TIP # 2: Know what your options are. Various schemes and options can work for you or the other way around. You have to get to know what these are and weigh them accordingly.
TIP # 3: Seek relevant expert advice. This is important to ensure that you make the right decisions and do not fall into the abyss of unending debts and piling interests. Talk to your financial adviser, consultant or designated key personnel.
TIP # 4: Determine how much you need. Do you already have part of the needed resources or will you need to loan for the full amount? How much will this be? You have to have a good estimate here because you do not want to go short or over.
TIP # 5: Be realistic about your capacity to pay. Loans are after all a liability so it is imperative to be fully aware of your ability to repay it later on. Will you have enough cash flows?
TIP # 6: Take a second look at your financial statements. This is because many financial institutions will take a look at them too as this is part in their approval process.
TIP # 7: Assess your credit history. How many times have you loaned in the past? How well did that too? Have you paid at the right time? How many liabilities do you have at the moment? Credit history will also be assessed like your financial statements.
TIP # 8: Know your fund providers. When getting small business loans for hotels, it is also necessary to assess the institution from whom you are getting your needed resources from. Are they reputable, trustworthy, transparent and will offer you quality services at affordable interest rates?
When it comes to business, funds or financial resources are a must. They are after all, the lifeblood of the company. Without them, processes are on a halt, employees will not stay and outputs are not produced. It is a sad fact however that money is not always readily available. This is very much true even for big and already established entities. Imagine how much more challenging it is for small and medium scale enterprises. One of the solutions to this is what we call the merchant cash advance.
True to its name, it works to provide financial resources to businesses in exchange for a percentage of the income earned in future daily credit or debit card sales. Companies can get advance their income even before they have actually been earned with a promise to give the provider or lending firm a percentage of their future sales. But is it really beneficial? Allow us to list down these advantages for you to see.
- It does not involve any form of debt. – If you read its definition again, it talks about advancing funds in exchange for a share in future sales. It can therefore be deduced that it is a sale rather than a borrowing. There are therefore no debts incurred and no liability to worry about. You can kiss compound interest goodbye as well.
- There is no collateral needed. – Because it is not a loan, it does not involve any form of collateral so businesses do not have to worry about potentially losing any of their assets, both corporate owned and personal owned.
- It is fairly quick to acquire than traditional loans. – When it comes to business, time is always of great importance. The faster the fund is made available then the better. A merchant cash advance can only take a week or less after application to become available for use.
- There are lesser requirements too. – With regular loans, credit rating and history, financial statements and all that will have to be looked at and examined. A merchant cash advance will only require applicants to have a positive cash flow with a good level of monthly credit and debit card receipts.
- You only repay once you yourself gets paid. – Probably the best thing about the merchant cash advance is the fact that the amount of payment that you give will depend on your capacity to do so as seen in your sales. It is a percentage-based collection that aids businesses in ensuring that their operations are not compromised due to repayments.
When it comes to the world of business and entrepreneurship, one trade that will never die would have to be the food industry. It’s pretty basic. We need energy and thus we need food. It’s basic instinct. Apart from that many food hubs today do not only offer to fill our stomachs but they also cater ambiance and entertainment. You’ll even see heaps of restaurants opening up and sprouting like mushrooms everywhere. This is true for majority of the countries around the globe. Would you want to open a restaurant for yourself and flaunt your culinary flair, business spark or even both? Or do you already have one up and running? If you answered yes to either question then you will most likely encounter business loans for restaurants. Allow us to share a couple of advice from 365 Business Finance.
ADVICE # 1: KNOW YOUR OPTIONS – If you really think about it and accompany this with ample research then you will come to discover that there are various funding options for your restaurant business. Each one comes with its own pros and cons that are greatly impacted by the client business’ needs, status and state of affairs. It is even advised that one talk to your advisers first as well as with the fund providers for a clearer picture of the services available to you.
ADVICE # 2: SHOP AROUND – It is best to shop around for the best interest rates there are. Different loan and fund providers have varying interest rates offered so it is best to consider different providers that offer similar services. More often than not, they vary in some way with the interest rates.
ADVICE # 3: CHECK CREDIT WORTHINESS – Your credit grade and history will impact whether or not it will be easy for you to get a loan and whether or not you will indeed be granted with one. Check your status!
ADVICE # 4: BE REALISTIC ABOUT YOUR EXPECTATIONS – This is in line with our third advice. By knowing your credit worthiness, you will best be able to align your expectations regarding the options that are viable for you, how much loan you will get and how long the application to approval process will be.
ADVICE # 5: CHECK YOUR BUSINESS AND FINANCIAL PLANS – Lastly, when getting business loans for restaurants it is crucial to check and make a double take are your business and financial plans. They are after all made to guide you not only operationally but also financially. How much resource do you actually have? Will they suffice? How much more do you need?