Burger shops, joints, restaurants– whatever you want to call them, have been a staple of American cuisine for at least 100 years. There isn’t a single town where you can’t find at least one place that sells burgers. And it’s really no surprise why. They’re simple in concept and to make, but they’re also crazy delicious. There’s also the variety. You can pretty much can anything you can think of on a burger and it just might work.
They’re versatile, and their popularity doesn’t seem like it’ll go away anytime soon. Which makes them a pretty great bet when starting a burger shop of your own. However, since you’re here, we imagine you don’t want us gushing over how great burgers are (you already know this!). And to continue, it’s a safe bet to assume you’re either a burger shop owner or looking to start one of your own. And that’s incredible. It’s not easy taking the first steps to start your own food business.
Despite how awesome it is to be starting your burger shop, it’s also expensive. Which isn’t to suggest there isn’t good money to be made but to run a successful burger shop, you’ll have to spend money to make money. There are things to consider such as real-estate, location, utensils, transportation, furniture, branding, decor, equipment– and I’m sure you can guess the rest.
If you’re looking to start your own burger shop, it’s important to look at the best loan options available.
The 4 Best Loans To Fund Your Burger Shop
- Startup Loans
- SBA Loans
- Business Lines Of Credit
- Equipment Financing
Startup Loans To Fund Your Burger Shop
As the name hints at, a startup loan is for new burger shops. And if you’re considering starting your own Burger Shop from scratch, a startup loan is a great option. Startup loans provide funding of up to $350,000 in unsecured loans. Which means no collateral; however, to apply, you’ll need to have at least one guarantor with a credit score of ideal +660. But, they’ll also look at anything between 600 and 800. Outside of that, the interest rates are 0% for up to 21 months.
SBA (Small Business Administration) Loans To Fund Your Burger Shop
When it comes to an SBA loan, you’ll need to have an existing Burger Shop before you apply. It’s one of the best loan options for restaurants because it gives the most money with the best rates. However, you need to have proof of business and revenue in order to qualify. On the plus side, the rates are 6.75% – 8.5% with a payback period of 10 – 25 years. Remember, SBA loan applications can take anywhere from 2 weeks to 2 months (14 – 60 days) for approval.
Business Lines of Credit To Fund Your Burger Shop
When running your soon-to-be or already existing Burger Shop, business lines of credit act a lot like a credit card. They’re nice because they help build your business credit up without hurting your personal credit. But remember, like SBAs, you need to have an existing business with provable revenue. Business lines of credit, are non-SBA and they provide a credit limit upwards of $500,000. So, whenever you withdraw cash, you only need to pay back what you’ve used. As long as you pay it back, you’ll always have the full credit limit for a rainy day. As for interest rates and loan terms, they’ll more-or-less vary based on the individual.
Equipment Financing To Fund Your Burger Shop
There’s a lot of equipment you’ll need in order to run a successful Burger Shop. There are things like transportation, location, real-estate, utensils, furniture, decor, cooking equipment, supplies, ingredients, and– yeah, quite a bit of stuff. This is where equipment financing plays a role. It’s the easiest type of loan to acquire, and it will fund anything similar to what we just listed. Of course, equipment loans are collateral based. But on the plus side, the equipment is the collateral in a worst-case scenario. And again, loan terms and interest rates will vary.
The Three Cs And How to Qualify For Loans To Fund Your Burger Shop
In order to determine whether you qualify, Finance Factory looks at the Three Cs: Credit, Cash Flow, and Collateral. Although the ideal credit score is 660+, they’ll look at anything between 600 – 800. As for cash flow, they like to see account balances of $1,000 – $5,000, minimum, but also look at monthly and annual revenue. And when it comes to collateral, Finance Factory primarily focuses on providing unsecured loans; however, they will accept collateral. It’s important to know that you only need to provide one of the Three Cs in order to qualify.
Finance Factory Helps You Find The Best Loans To Fund Your Burger Shop
Interested in finding funding for your Burger Shop? Finance Factory would love to help! If you’re looking to fund your business within the next 30 to 90 days for $25,000 to $500,00 and have a credit score of 660 or better, let’s chat! Get pre-qualified right now with our quick-step pre-qualification form! And don’t worry, this will not result in a hard credit inquiry of sensitive information. We just want to learn more about you and your business. Click below to get started!