It’s incredible that you’ve finally decided to start your own deli shop. However, we’re sure it’s a safe bet you’re reading this because you want to get a foot in the deli industry. It’s not easy when you’re just starting out, but it’s still an amazing choice. Despite how incredible it is, you’re here because you’re looking for means to fund your business.
There are quite a few reasons why you may not have the funding you need for your deli shop. There’s a lot to buy when you’re just starting off. You’ll need real estate, storage, supplies, appliances, cutlery, and more to get the ball rolling. But you also might need transportation for your deli shop’s products. So, when it comes down to it, you’ll have to make an investment before you start seeing a profit.
Maybe you have your finances in order, but for those of you who don’t you’ll likely need a loan. Luckily for your soon-to-be deli shop, there are dozens of loans out there to help you get financed.
How To Fund Your Deli Shop
- Tips And Qualifications To Fund Your Deli Shop
- SBA And Startup Loans To Fund Your Deli Shop
- Business Lines Of Credit And Equipment Financing To Fund Your Deli Shop
Tips and Qualifications To Fund Your Deli Shop
When you hear bank loans, you think of interest rates and bad credit. Loans can be daunting, but they don’t have to be. Nowadays, there are plenty of loan options to fund your deli shop. And they don’t always have to come from a bank. So, while they aren’t always desirable, they’re a necessary part of starting your own deli shop.
Banks typically require collateral before you can receive financing for your deli shop. These types of loans are referred to as “secured loans.” And they can result in the loss of your home or car in the worst case scenario.
Luckily for you, there are plenty of alternative lenders who provide loans without collateral. These are better known as “unsecured loans” and they’re one of the easiest and safest ways to fund your bakery.
In order for your deli shop to qualify for a loan, Finance Factory looks at the Three Cs: Credit, Cash Flow, and Collateral. When it comes to credit, they’ll look at any score between 600 and 800; however, +660 is the ideal. As for cash flow, they’ll look at time in business, monthly and annual revenue, as well as a minimum account balance of $1,000 – $5,000. And in regard to collateral, it’s an option, but not necessary. You only need one of the Three Cs to qualify for a loan.
SBA And Startup Loans To Fund Your Deli Shop
An SBA loan is the most common when it comes to financing a small food business. But to qualify, you’ll need at least one guarantor with a credit score of +660. However, you’ll also need an established deli shop with tax returns with verifiable revenue. When it comes to interest rates, you’ll be looking at ~6% – 8% with payback terms ranging from 10 – 25 years. It can take two weeks to two months (14 – 60 days) to receive funding, but SBAs provide the most money at the lowest rates.
As for startup loans, you can get up to $350,000 in unsecured funding. However, once again, you’ll need one guarantor with a credit score between 600 and 800. And in regard to interest rates, they’ll be 0% for up to 21 months.
Business Lines Of Credit And Equipment Financing To Fund Your Deli Shop
Business Lines of Credit, are non-SBA and provide up to $250,000 within 1 – 2 weeks. In order to qualify, you must have an established business and proof of revenue. Interest rates and terms will vary.
As for Equipment Financing, this type of loan is typically used for things ranging from storage, supplies, cooking equipment, transportation, and– I’m sure you get it by now. And because the equipment is the collateral, it makes it the easiest loan to receive. And once again, rates and terms will vary.
Finance Factory Can Help You Fund Your Deli Shop
Interested in finding funding for your deli 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!