Today, many restaurant owners believe that restaurant equipment financing is one of the intelligent ways to equip your business with innovative and functional equipment. This option allows them to acquire gently used and new equipment without consuming all of their capital.
But apart from equipment financing, there are still other funding options that can meet your needs. So, here are the other common funding options that you can consider aside from equipment financing.
Traditional Term Loan
Bank term loans will provide the most excellent rates – but bank loans are notoriously difficult to secure, and the procedure might take months. Only the most profitable and steady enterprises will be taken into account. You could also be able to get a loan from an online lender. Online lenders often have faster turnaround times and lesser requirements than banks, but their interest rates are much higher.
If you have a limited company history and would otherwise need to take out an expensive short-term loan, the personal loan is a wise choice. The main disadvantage is that the overall loan amount will almost certainly be less than a business loan. Furthermore, if you fail to return the loan, your personal credit will suffer.
Business Line of Credit
This funding option is similar to a credit card. You acquire access to a fund from which you can draw as needed. You just pay interest on the amount borrowed, and you can draw on the line many times you need until it is closed.
If you think these funding options do not best suit your restaurant needs, you can just opt to consider equipment financing as it also offers commendable perks.