Running a restaurant is hard work. Just ask anyone who’s ever done it.
Restaurant owners face a ton of challenges. They can be affected by seasonality. Bad weather can force them to shut their doors. The economy can cause many folks to eat meals at home more often.
This all translates to the reality that many restaurant owners have a hard time putting together the cash they need to grow their business. When cash becomes tight enough, it can be difficult to stay open in the first place.
Luckily, restaurant owners struggling with cash flow problems aren’t completely out of luck. If you find yourself in that group, you can apply for a working capital loan and use the funding you receive on any short-term obligation that will help your restaurant grow.
When it really boils down to it, working capital loans can make or break your restaurant. Here’s why.
- Working capital loans help you meet payroll and pay your bills
Running a restaurant is tricky business. Every restaurant owner knows how difficult it can be to pay your employees each week and keep up with all the various bills: rent, energy, heating and cooling, garbage, water, internet, landscaping, etc.
Working capital loans give restaurant owners the peace of mind that comes with knowing they’ll be able to afford all of their obligations when bills are due. With a working capital loan, you won’t have to scramble at the end of each month to piece together the funds necessary to keep your doors open.
- Working capital loans allow you to renovate or relocate your restaurant
We’ve all eaten at restaurants that look like they were designed decades ago. We’ve all also eaten at newly designed restaurants that have brilliant atmospheres.
If you haven’t updated your restaurant in years, you might want to think about whether it’s time for a renovation project. Working capital loans provide you the means to afford such an undertaking.
Similarly, everyone knows that both physical location and space can be critical to the success or failure of any restaurant. If you happen to stumble across a fantastic property that’s available, you can use your working capital loan to relocate your restaurant to a more attractive (i.e., profitable) area of town.
- Working capital loans enable you to open additional locations
If your restaurant’s doing extremely well, you may get to the point where you eventually think about opening up another location. When done correctly, a second location can help grow your business’ bottom line significantly.
You can use a working capital loan to open up a second location when your cash is tied up in your business. If that second location takes off, you may never have cash flow problems again.
- Working capital loans let you buy new equipment
When’s the last time you revamped your kitchen?
Working capital loans give you the money you need to buy that new stove you’ve been eying for some time—or that bigger refrigerator you needed three years ago. When deployed correctly, new equipment helps you provide your customers a better experience every time they step foot inside your restaurant. You’re able to cook better dishes and offer more diverse options on your menu.
- Working capital loans ensure you won’t run out of food or drink
You can’t exactly expect to grow your business if you’re constantly running out of food and drink items on the menu. You won’t generate any revenue if you’ve got nothing to sell.
With a working capital loan, you can rest comfortably knowing that ingredients and drinks are fully stocked at all times. You’ll be able to handle even the busiest of rushes—and still offer a full dinner menu to the late-night stragglers.
- Working capital loans make marketing and advertising affordable
Since it can be tricky enough to pay your employees and your bills on time every week, it’s almost unfathomable for many restaurant owners to set aside any money for marketing and advertising expenses. Still, we all know that marketing works wonders for businesses—andrestaurants are no different.
Good news: Restaurant owners can use working capital loans to pay for marketing initiatives and advertising campaigns. A little money invested up front can go a long way toward growing your business over the long term.
Are you a restaurant owner looking for financing to grow your business? Working capital loans may be exactly what the doctor ordered. Get a free quote today!