There is no extent to where you can scale up your restaurant business. Perhaps, starting from a small cafeteria might lead to a chain of restaurants in different cities. However, there is one of the biggest impediments that might come between a small cafeteria and a bigshot restaurant chain – the investment. This is where restaurant business loans come into the picture.
Tom Harding worked hard for five straight years to grow your small roadside cafeteria in Newcastle into a full-fledged restaurant that has a capacity of accommodating 80 people at the same time. Now what?
He was looking to expand the business by having a new branch in a posh area, Sydney he considered, one of the greatest cities in Australia. Pretty close to Newcastle, right?
But once he made up your mind, he would need the following things:
- Capital investment
- Commercial space for the restaurant
- A likeable ambience
- Restaurant furniture
- Kitchen equipment
He had already saved up some money from his first restaurant to invest in the space and the setup. However, he still needed decent restaurant business loans to set up the aesthetics of the restaurant, employ all the equipment and staff. And this is where easy business loans for restaurant come into the picture.
Why did Mr. Harding need to finance everything in restaurant?
Mr. Tom Harding did have some experience in the food industry as he already owned a restaurant. He knew that setting up was a very expensive affair, kitchen equipment aren’t cheap and fancy furniture cost a fortune.
So, to meet the finances, he needed to acquire easy business loans for restaurant from banks so that he could get things going at pace.
Traditional lending corporations, like banks, have a lengthy application process when it comes to loans. Unsecured (and personal) loans aren’t approved easily and even if they are, the amount is never up to the mark.
The desirable loan amount is sanctioned when there is collateral on offer. What could he offer as collateral? He was operating the business on a leased commercial space!
How alternate financing helped him?
A good friend of Mr. Harding recommended him to try applying for unsecured business loans for restaurant from a financing company and not from any bank. These independent loan providers do not have very strict approval terms. The friend himself had taken an unsecured loan from Hubbe and he recommended the same name to Mr. Harding.
Next up, he was quick to enquire about Hubbe and these are what he came across:
- Fast approval process, usually within 24 hours
- Attractive interest rates
- No collateral required
- Hassle-free with minimum paperwork
- Flexible repayment terms
Recommended unsecured loans for a restaurant business
Mr. Tom Harding made use of the various types of unsecured loans that Hubbe offers to ensure that his new restaurant in Sydney is up in a quick time.
Unsecured business loans: This is one of the most important types of loans that a restaurant can have. It is much like a personal loan that can be used for any purpose required. In the case of Mr. Harding, he used it to buy furniture and improve the interior decor of the restaurant.
Line of credit: He also had the option of going for a business line of credit, which allows him to use his loan as and when needed. This type of loan is much like a credit card with a pre-approved amount. The borrower can withdraw the cash in multiple attempts as he requires. Mr. Harding could use it for making miscellaneous payments while he is working on developing the kitchen and the front-office area.
Merchant cash advance: A Merchant cash advance loan was also suggested by Hubbe. Under this type of loan, the lender offers advance payment to the borrower for future sales. This type of loan is common among new businesses when the sales are low or yet to take traction.
Mr. Tom Harding could set up his restaurant in Sydney in real quick time and started serving over a hundred customers everyday right from the first month of setting up. Both he and Hubbe knew that this relationship of helping capable business thrive would last for a lifetime.
Also Read: How Business Equipment Loans are useful for Restaurant Business
Also Read: Restaurant or Café- Grow Easily in the Competitive Era!