The restaurant industry is a unique industry. It is an industry that does not have a shelf life. Either people like a restaurant or they don’t. Yes, there are fads within the restaurant world that come and go but people will always have their favorite spots to dine. The issue that restaurants have at times is finding sufficient financing. They may be able to get a traditional loan from a bank but what if they have bad credit? How to find restaurant financing with bad credit is the question that is asked by many restaurant owners.
How to Find Restaurant Financing With Bad Credit
When applying for a loan with your bank you will have to submit many documents and then wait two weeks or 30 days to receive an answer. If they deem your FICO score to be too low you will be declined for restaurant financing. Regardless of the performance of your business, it’s great cash flow, your experience and time in business a bank will decline you for financing if you have bad credit. The next step should be looking for alternative sources of restaurant financing. In particular, restaurant financing for those with bad credit. Your best bet is to go right to your favorite search engine, like Goggle, Bing, or Yahoo and simply type in “how to find restaurant financing with bad credit.” You will see numerous results made up of both lenders and brokers. Which avenue you take to secure your credit is your choice. As a suggestion, a broker might be a better choice for several reasons. A broker will be a one stop shop for a restaurant owner to send a one page application, bank statements and merchant statements, and anything else. Better than going from lender to lender and sending the same items numerous times. Also, a broker will be well versed in finding the lender or lenders that can accommodate your needs which will save you valuable time. Using a broker or a broker /lender like our Small Business Funding website for example will make this process fast and hassle free. You can get an approval decision within 24 hours and if approved you can receive your cash in as little as 2 days.
Restaurant Financing Hurdles
Restaurants have a difficult time getting the financing they need due to the cash nature of their industry. Banks may provide cash but not enough because they fail to comprehend that balance sheets and profit and loss reports may not tell the whole story. Since it is a cash enriched industry “every sale” may not be represented. Alternative lenders do understand the nuances of the restaurant business and their underwriting algorithms allow them to properly provide the right amount of financing regardless of credit. They will place significantly more weight on the performance of the business and the owner’s experience rather than their credit score. So, how do you find restaurant financing when you have bad credit? Just visit your local search engine and type in “how to find restaurant financing with bad credit” and make your selection from the results.