As a restaurant owner, Revenue Based Loans are great, but they aren’t the only options. It can be daunting to think about, to say the least. However, loans are actually pretty simple when it comes down to it, and more options mean more flexibility. Although, more options doesn’t necessarily mean you qualify for all of them either.
That’s why it’s important to look at all the available loans and choose what will work best for your restaurant. Running and operating your own restaurant is awesome, and it’s a great way to make money. But remember, whether loans are easier or harder to get, they all ultimately depend on a few factors such as credit, cash flow, and collateral.
However, don’t worry yourself too much. Different loans have different criteria, and there are plenty of lenders outside of traditional banks. While banks typically have a fixed process and criteria, alternative lenders offer loans for startups and small restaurants.
So, as a small restaurant owner, it’s completely possible to qualify for a loan depending on which ones you’re looking at.
Benefits Of Revenue Based Loans For A Restaurant Owner
As we talked about above, there are dozens of loans and lenders out there. However, we’re going to talk about the benefits of revenue based loans and merchant cash advances.
Credit: As a restaurant owner, you only need a minimum score of 550 for a Revenue Based Loan.
Collateral: To put it as simply as possible, there is none!
Payment Terms: They’re much shorter than other traditional loans, so as a restaurant owner, you don’t have to worry about the long-term.
Application: It’s relatively easy to go through the process since not a lot of information is needed. You mostly just need statements and proof of revenue.
Finance Time: It’s pretty quick and you can get approved in as fast as 48 hours!
Approval Rates: Their pretty high. So, if your restaurant doesn’t have a lot of established time in business or credit, you still have a strong chance to qualify.
The Three Cs To Getting Your Restaurant Funded
In order to determine whether your restaurant qualifies, 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. For Revenue Based Loans / Merchant Cash Advances, you only need a FICO score of 550.
As for cash flow, they like to see account balances of $1,000 – $5,000, minimum, but also look at monthly and annual revenue. However, that will vary by RBLs.
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 Can Help You Get A Personal Loan
Interested in Revenue Based Loans? Finance Factory would love to help! If you’re looking to fund your business within the next 30 to 90 days, and have a FICO score at a minimum of 550, 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!