Can I get a loan to buy equipment for my restaurant?
Believe it or not, there are plenty of options available to a business owner who needs to buy some equipment for their restaurant. It really comes down to several factors when searching for the right financing program:
1. The type(s) of equipment the restaurant is buying
2. The credit profile of the owners of the company
3. The credit profile for the company itself (D&B)
4. Depending on the cost for the equipment, financials might be required
5. Length of time in businessSo depending on the business, the financing can be structured several different ways. That’s why it is important for all business owners to be educated on what different type of financing is out there. It still amazes me that business owners believe just because their banker told them they can’t get financing with their bank (whom they bank with), they automatically assume they can’t get financing anywhere else. I literally had a client call me today and said the manager at the bank who she had banked with for the past 5 years said there so be no reason why she couldn’t get a business loan. Come to find out after jumping through all their hoops, and compiling all their paperwork they denied her for the loan due to have some blemishes on her credit. Fortunately this business owner did her own research and realized there are special programs designed for business owners who have challenging credit.
What type of financing terms can I get for my restaurant equipment?As mentioned earlier depending on your specific scenario will determine the type of financing your company is eligible for. Since today’s article is about financing restaurant equipment let’s discuss the items you would find in a restaurant. Almost anything you find in your restaurant can be financed, from the walk-in fridge/freezer to the plates and utensils. Typical terms for equipment can be anywhere from 24 months to 72 months, unless you took another approach by using a working capital loan. Our working capital loans are anywhere from 3 months to 24 months.
How much paperwork will be required?
If your equipment is less than $100,000 and your credit is average, we can get away with doing just an application. The only income verification that will be required is the 1st page of your 4 most recent business bank statements. If your equipment exceeds $100,000 you will need to gather a little more documentation for income verification.
– 2 years personal and business tax returns
– Personal financial statement
– Interim financial statement
How long will it take to find out if I’m approved for financing?
Most of the time it’ll take less than 48 hours to get you an answer. The more complicated the file the longer it can take, but we’ve seen approvals issued with in just a few hours.