Like many small businesses, there may come a time when a restaurant requires additional funding to get through a seasonal slump or expand its operations. This is where a small business loan comes in handy, however obtaining this type of finance will require some research beforehand.
Thankfully, getting a small business loan for your restaurant doesn’t have to be stressful, especially if you know the step-by-step process to secure the funding you need.
How to Get a Small Business Loan for Restaurant?
Here’s a checklist of six steps you can take to apply for restaurant finance today.
Step 1: Assess Different Small Business Loans for Restaurants
There are many different types of small business loans available to restaurant owners. During your research, you may come across the following:
- Small Business Administration (SBA) Loan
- Short-term business loans
- Merchant cash advance
- Business overdraft
- Business line of credit
- Invoice financing
- Equipment financing
The most suitable type of small business loan will rely on a number of variables, including the requirements of your restaurant and the loan’s duration and conditions.
While traditional bank loans are often considered a good option, they do contain more stringent requirements, such as a high credit score of 690 or above. If your credit score is less than this, you might need to consider an alternative lender that provides restaurant owners with online business loans. As a result, merchant cash advances and term loans are two of the most popular online business loans being offered to those within the restaurant industry.
These online small business loans are quick and easy to apply for online, plus they also have fewer conditions for qualifying. Because of this, restaurant owners usually get an application outcome in as little as 24 hours. Within a few days of approval, the necessary funds are then deposited into their designated bank account.
Step 2: Compare Different Lenders
Often, you’ll want to seek a business loan with the most favorable terms. Other factors like funding speed could be crucial for your restaurant.
The following questions can help you determine which lender is ideal for you:
- How much funding can the lender provide?
- How fast is their approval process?
- How soon can the lender provide access to the funds?
- What are their fees or charges?
- Does the lender require me to use the assets of my business or my own assets as collateral?
Step 3: Check Your Eligibility
Once you’ve determined which loan type and lender is right for your restaurant, it’s vital that you ensure you’re eligible to apply for this finance. These requirements will differ lender-by-lender.
To qualify for a small business loan from Zinch, for example, you need to meet the following simple criteria:
- Been in operation for at least 6 months
- Be earning over $10,000 in monthly sales
Step 4: Gather Your Documentation
Your lender will inform you of the paperwork they want in order to examine your business and financial situation. Generally, this documentation will contain at least some, or all, of the following:
- Business and personal bank statements
- Your company tax ID number
- Your business plan
- Your credit score
At Zinch, you only need statements from the past three months to apply for a small business loan.
Step 5: Fill Out an Online Application Form
Go to your chosen lender’s website to launch the loan application form, then follow the prompts.
You can often save your application whenever you need to and return to it later if necessary. But the sooner you submit a finished application, the sooner you’ll get a response and obtain the money your restaurant needs.
After that, you should have a response to your request for a business loan within 24 hours.
Step 6: Receive Your Funds Once Approved
If your application for a small business loan is approved, you can expect your acquired capital to be deposited into your designated bank account within as little as 48 hours.
Need a Small Business Loan for Your Restaurant?
With quick turnaround times and flexible terms, an online business loan provides various benefits to restaurant owners that traditional finance does not.
Applying for a small business loan online is simple and fast. Restaurant owners greatly improve their chances of acquiring financing if they fulfill a lender’s eligibility criteria and have the necessary documentation on hand.
Contact us at (714) 500-6622 to learn more about your small business loan options with Zinch. You could qualify for up to $250,000 in just 24 hours.
