Over the last few years, veganism has broken away from the “hipster fad” stereotype and transformed itself into a mainstream powerhouse. The diet used to be associated with passionate, but strong-opinioned people. However, it’s not only become a lucrative opportunity, but also a movement within the food industry. People all across the United States– and, well, the world– have begun to understand and support veganism.
While the movement is just beginning, it’s easy to see why so many entrepreneurs are taking the plunge into the vegan restaurant world. Just in 2018, sales of plant-based food have skyrocketed into the billions according to the PBFA (Plant Based Foods Association). Beyond that; however, experts predict the vegan industry will only continue to expand exponentially over the next few years.
While starting your own vegan restaurant can be a crazy successful venture, it’ll require some money to get you cooking. Like any other restaurant out there, vegan restaurants are a pretty expensive endeavor. So, while it’s awesome that you’re passionate about veganism and want to share it with the world, you’ll need some financial help along the way.
You’ll have to consider things such as brand, decor, location, real estate costs, equipment, appliances, utensils, furniture, and– well, I’m sure you get the point. So, if you’re an entrepreneur wanting to start your own vegan restaurant, finding the right loans for you is a must.
5 Loans That Will Make Your Vegan Restaurant Crazy Successful
- Startup Loans
- SBA Loans
- Business Lines Of Credit
- Equipment Financing
- Revenue Based Loans And Advances
Startup Loans For Your Vegan Restaurant
As the name suggests, these loans are for new startup vegan restaurants. And they’re great because unlike banks, the lenders dishing out startup loans are willing to take risks on entrepreneurs who know they have what it takes to succeed.
So, if you want to take the plunge, startup loans can be a great asset in getting your vegan restaurant off the ground. Startup loans can provide financing of $350,000 in unsecured loans (no collateral). However, it’s important to remember that you’ll need at least one guarantor with a credit score between 600 and 800. Aside from that, the interest rates are 0% for up to 21 months.
SBA (Small Business Administration) Loans For Your Vegan Restaurant
It’s important to preface this loan with the fact that you’ll need to have proof of business for your vegan restaurant to qualify. Outside of that, it’s one of the best options out there for vegan restaurant entrepreneurs.
The loans themselves can provide money anywhere between $150,000 to $5,000,000 with interest rates between 6% and 8%. Beyond that, the payback period can be anywhere between 10 and 25 years. But, also be mindful of the fact that SBA approval can take fourteen to sixty days to be reviewed.
Business Lines Of Credit For Your Vegan Restaurant
When it comes to running your vegan restaurant, a business line of credit is pretty similar to a credit card. It’s a great thing to have because it’ll help build your vegan restaurant’s credit without impacting your personal credit.
But remember, to qualify for a line of credit, you need to have an established business with revenue to prove it. Business Express Loans (Business Lines of Credit) are non-SBA and they can give as much $500,000 in credit limit. So, whenever you pull out money for your vegan restaurant, you’ll only need to pay back the money you’ve used and not the entirety of the line of credit.
And as long as you pay back what you’ve used, you’ll always the full credit limit available for your vegan restaurant.
Equipment Financing For Your Vegan Restaurant
I think it’s safe to say you can’t run a successful vegan restaurant without the equipment to store, cook, and serve your food. Equipment financing is pretty cut and dry, and luckily for you, it’s probably the easiest loan to qualify for. It’s all relatively low risk since the equipment itself is the collateral.
Revenue Based Loans And Advances For Your Vegan Restaurant
This is great for vegan restaurant owners who are doing really well but haven’t been in business very long. You can get anywhere between $10,000 – $1,000,000 in funding. The benefit of this option is that lenders look at the health of your business and revenue to figure out whether you qualify. So, if you don’t have a long credit history, this one is good for you. And another added bonus is that you can get funded in as fast as 48 hours.
Finance Factory helps you find the best loan options for your vegan restaurant
Interested in finding funding for your business? 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!