Restaurant Loans – Business Financing for Restaurants

As with bars and pubs, luckily for the restaurant sector, it’s relatively easy to acquire external funding. Both traditional and alternative lenders recognise the potential in growing restaurants, which means they’re keen to lend to these business types. Setting up a restaurant is both an ambitious and tough undertaking, thorough knowledge of all aspects of the industry is required to truly succeed.

There are several costs you will need to be able to meet in years 1 and 2, basic expenses include:

• Public liability insurance
• Restaurant lease
• Buying and refurbishing restaurant premises
• Purchase of kitchen equipment
• Staff recruitment, including uniforms and tools
• Furniture and fittings
• Food and beverage stock
• Website build, development and design costs
• Branding, advertising and marketing
• Table booking software, phone lines for reservations
• Payment systems / card terminal providers
• Working capital to keep the business running

In this increasingly expensive business environment, SME Loans is on hand to help cafes and restaurants in need extra finance to meet climbing costs. Our funding options have helped several business owners like yourself to succeed. Make 2019 your year and consider an unsecured business loan or merchant cash advance.

 

Business Loans For Restaurants & Cafés

Both our café loans and restaurant loans offer business owners unsecured funding between £1,000 and £500,000. You can easily apply to receive an amount of your choice in full upfront, making monthly repayments with interest over a period of 1 to 5 years. Our restaurant loans are designed with busy restaurant owners in mind, and our flexible repayment plans allow you to get the most out of your loan while keeping extra costs at an all time low.

Because our loans are unsecured, you don’t have to worry about offering valuable business collateral as security against the loan. Instead, you may be asked by a lender for a personal guarantee. This personal guarantee is a legally binding agreement that in the unfortunate event your café or restaurant defaults on loan repayments, you as the business owner become personally liable for paying back the money. Whilst this may sound like a scary risk, if your confident in your business’ ability to upkeep payments – there’s little need to worry.

Eligibility Requirements:

• Registered and trading in the UK
• Business owner over the age of 18
• Business must be at least 6 months old
• Minimum monthly turnover of £5,000

 

Merchant Cash Advance For Cafés & Restaurants

Differing to business loans, a merchant cash advance is an advance on the money your restaurant is predicted to make in future debit and credit card transactions. After receiving an instant cash injection, you are then expected to make repayments via a pre-agreed, small percentage of customer card sales.

Businesses can access between £5,000 and £500,000 with this product. The merchant cash advance is a perfect funding solution to café and restaurant business owners, repayments are always nicely in sync with your business’ cash flow – making repayments easy to manage each month.

Eligibility Requirements:

• Registered and trading in the UK
• Business owner over the age of 18
• Business must be at least 6 months old
• Average monthly card sales must total £5,000 minimum

 

Applying For Café Or Restaurant Finance

SME Loans application process has been designed to help busy business owners access finance quickly. Our hassle-free application should only take a few minutes and can be completed entirely online. Applying for business finance may at first feel intimidating, so if there’s anything you’re unsure about our business account managers are more than happy to help – give us a call on 01244 506279.

Step 1:

Click to apply now. Because we have a panel of expert lenders, we will need more information about your restaurant business to ensure we match you to the lender most suitable. You will be asked to disclose:

• The name of your business
• The number of years trading
• The type of business
• Average monthly card sales or turnover
• The amount you’re looking to borrow to fund your café or restaurant

 

Step 2:

Expect to be redirected further down the page. We will also want to find out more about you as the business owner, so please be ready to tell us:

• Your title, first name and surname
• Position in the business
• Contact details

 

Step 3:

It’s important that you read through our terms and conditions before clicking to ‘get my quote’. From here, one of our account managers will make a start on finding you a lender to offer finance.

 

Step 4:

Your account manager will be in touch via phone and email to discuss the terms of your advance or loan agreement – please expect a call on the number you’ve provided.

 

Step 5:

Carefully read through the provided terms and agreement, signing any relevant documentation before returning it to the lender. Once the agreement has gone through, you will be able to access money in your account within 48 hours.