When it comes down to it, opening and running a burger restaurant is pretty expensive. And, to be honest, unless you’re sitting on a large amount of cash, you’ll need a loan. It takes a lot to make a restaurant successful. Even if you have great food and atmosphere, there’s a lot of other factors to consider. As you may be aware, 60% of all new restaurants fail within the first year. So, needless to say, opening a burger restaurant is pretty tough. But don’t let that scare you off. Restaurants can be one of the biggest opportunities to make some real money if you do it right.
And since you’re reading this, It’s likely you’re already considering a loan for your burger restaurant. However, you may not have all the money you need on-hand. You may be a bit skeptical, as well. Which makes sense. It’s not uncommon hearing anecdotes both swearing by and warning you of loans.
With all of those different opinions out there, it can be daunting to figure out the right loans for you. And while there are dozens of loans available for you burger restaurant, not all loans are good for it. However, there are plenty of great loans out there, as well.
The 3 Best Loans For Your Burger Restaurant
So, If you’re a burger restaurant owner, here are our 3 best loans for your restaurant.
When it comes to running a burger restaurant, equipment is key. However, it’s also an expensive part of the business. You’ll need commercial ovens, stoves, storage, and more. The numbers add up.
Even if you can afford some of the equipment on your own, there’s a lot of benefits to equipment financing. If your burger restaurant were to ever need any replacements or upgrades, equipment financing would be able to cover the costs you need.
And on the plus side, equipment financing is the easiest to qualify for since the equipment is the collateral.
It’s important to know with an SBA loan, you’ll need to have an established burger restaurant. Which pretty much means this is only good for those of you who have an established business. But for anyone who is looking to make a startup, startup loans are options.
SBA Loans can provide you with a large amount of funding with some of the best interest rates– 6% and 8% for 10 to 25 years. Just know, though, they can take anywhere between 14 – 60 days and you’ll need to provide proof of business during the application process.
Business Lines of Credit
Business Lines of Credit are great in general. They help burger restaurant owners have that “just in case rainy day fund” while also helping to establish good credit (as long as expenses are paid off on time).
The cool thing about them is that they are pretty dang flexible. Do you need a new oven? A business line of credit can cover that. Need to finance the restaurant during the slower months? That’s right, a business line of credit.
Basically, you’ll only pay interest on the money you’ve used from your total credit amount. And once you do, you’ll be able to draw from the maximum amount once again (Think of it like Recharging a phone battery).
You can get up to $500,000 in funding in a 1 to 2-week process. However, you do need an existing business with revenue.
Finance Factory Helps You Find The Best Loan Options For Your Burger 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!