When Your Restaurant Needs a Loan: Restaurant Loans and Financing Challenges

Getting a business loan is no simple task. Getting a restaurant loan is even harder! Why are banks so hesitant to provide financing to restaurants? Bluntly stated, the majority of new restaurants fail within the first year. An equally sad number of restaurants fail within the first two years.

The biggest controllable factor that can determine the success of a restaurant is its source for available financing. Many entrepreneurs in the food industry succeed in securing their restaurant loans, but later find that their initial funding was not enough to keep them up and running until the restaurant “catches”.

So what do you do when your restaurant loan just wasn’t enough? You go back to the bank!

Unfortunately the bank is not always willing to help you through these difficult times. They knew it was risky to lend you the money in the first place, but they did anyway. However, now you don’t have any more collateral, your credit is bad from a few slow months, and you’re still asking for money. The bank says No!

There is still hope for your restaurant! A restaurant business cash advance can help you get through tough times and slow beginnings. A business cash advance allows you to borrow money against future sales through credit card factoring. This financing / loan alternative is ideal for restaurants as it does not require any collateral and provides flexible repayment options.

Benefits of a Restaurant Cash Advance (Loan Alternative):

  • No collateral necessary
  • Bad Credit OK
  • No fixed repayment (repayment based on sales volume)
  • Faster than a loan (approved in 24hrs or less)
  • Unlike restaurant loans – 97% of qualified applicants are approved

General Requirements:

  • Must be an existing business (no start-ups)
  • Must process a minimum of $1000/month in credit card invoices

Stop apply for loans – get a cash advance for you restaurant quickly!

Top Rated Books – Restaurant Management

Since so many of our clients are in the food service industry, I decided to research books that customers from Amazon.com rated 5 stars for Restaurant Management.  These are the books they recommended:

1. The Restaurant Managers Handbook: How to Set Up, Operate, and Manage a Financially Successful Food Service Operation by Douglas Robert Brown (Hardcover – Sep 3, 2002)

2. Running a Restaurant for Dummies by Michael Garvey, Heather Dismore, and Andrew Dismore (Paperback – Jul 9, 2004)

3. Restaurant Management: Customers, Operations, and Employees (3rd Edition) by Robert Christie Mill (Paperback – Jul 14, 2006)

4. Opening a Restaurant or Other Food Business Starter Kit: How to Prepare a Restaurant Business Plan and Feasibility Study by Sharon Fullen (Paperback – Dec 30, 2004)

5. The Encyclopedia of Restaurant Forms: A Complete Kit of Ready-to-use Checklists, Worksheets, And Training AIDS for a Successful Food Service Operation by Douglas Robert Brown (Hardcover – April 2004)

6. The Restaurant Dream? by Lee Simon (Paperback – May 16, 2006)

7. Restaurant Planning Guide by Peter Rainsford and David H. Bangs (Paperback – April 1, 1996)

8. 10 Steps to Successful Bar & Restaurant Management by Dr. Kirk Wakefield (Paperback – Dec 15, 1999)

9. Restaurant Financial Basics by Raymond S. Schmidgall, David K. Hayes, and Jack D. Ninemeier (Paperback – Oct 2, 2002)

10. The New Restaurant Entrepreneur: An Inside Look at Restaurant Deal-Making and Other Tales from the Culinary Trenches by Kep Sweeney (Paperback – Jun 1, 2004) – ok, so this one had a customer rating of 4.5 stars, but I couldn’t find any more 5 stars