There’s a reason 60% of restaurants fail within the first year and 80% of them fail within five years: Being a successful restaurateur is hard work.
In addition to having to serve up tasty food and create an inviting environment, restaurant owners also have to combat an uncertain economy which makes many customers’ wallets lighter.
They also have to fight against the weather: According to a recent study, 75% of restaurants reported a 10% dip in sales during periods of exceptionally inclement weather.
There are still more variables outside their control. Take a look at Seattle, where the minimum wage was recently raised to $15.
With all these factors in mind, it comes as no surprise that restaurant owners are constantly battling cash flow. They need to make payroll, pay their bills, buy supplies and furniture, and have enough food and drink on hand to keep customers happy.
When cash flow is mismanaged at a restaurant, it’s only a matter of time before owners are forced to close their doors.
Instead of rolling the dice and hoping you’ll get lucky enough to not be crushed by the above factors, it’s worth considering whether it makes sense to be proactive and secure supplemental funding that’ll help your restaurant survive its infancy. That way, for example, you won’t have to worry about making payroll in the event a blanketing snowstorm forces you to shut your doors for a week and you have to throw out a lot of food.
Unfortunately, banks typically don’t lend new restaurants money. They prefer borrowers who have a proven history of strong revenue, because the statistics tell them those folks are more likely to pay their loans back in full.
You’re not out of luck though. Instead of trying to get a loan from a traditional financial institution—and most likely striking out—restaurant owners should seek financing from alternative lenders in the form of unsecured business loans.
Unlike secured loans which require you to put up collateral in return for financing, unsecured restaurant business loans do not—you don’t have to tie up any assets to get money.
Yes, unsecured business loans generally have slightly higher interest rates than loans issued through banks. But since banks don’t fund many restaurants, it’s still an attractive option. Plus, you’ll know the exact terms of the agreement when you sign it. Terms can’t change during the middle of a contract, so you’ll know what you’re getting into.
Unsecured restaurant loans are really easy to get—even for budding restaurant owners with bad personal credit scores. Financing is based on how well your business is performing and how much revenue it generates each month.
You have a restaurant to run, dishes to create, and a staff to manage. You can’t afford to spend a ton of time researching a slew of potential lenders. But if you want to make sure your restaurant lives to see year two and beyond, you need money, and you need it quickly.
Good news: You won’t have to fill out a billion forms and go through a long approval process to receive an unsecured restaurant business loan. You can get funding quickly and easily; money will be deposited in your account in a matter of days once you’re approved.
Running a successful restaurant involves having access to capital—it’s as simple as that. Rather than taking a chance on your funds drying up due to any of the numerous variables that kill restaurants, put yours in a position to succeed right from the start.
By applying for an unsecured business loan for your restaurant, you’re buying the peace of mind that comes with knowing you’ll always be able to pay your staff in a timely manner. They’re the people you depend on the most, after all. Without them, where would you be?