As a business owner, your cashflow may not be well balanced: some days/weeks/months it’s all go, but the next day/week/month cashflow stagnates. The business is there, you have clients, but perhaps your client-base is seasonal in nature. Certainly, in ours summer and winter vacation times are SLOW periods.
Restaurants, like many businesses, have such a seasonal nature. So, as a boss, how do you finance some of the things that happen such as, renovation, buying out a partner, getting a license to sell alcohol, or even opening a new location?
If you don’t have the capital, companies can and do provide short term, working capital loans for small to medium-sized restaurants, Restaurant Loans are available that you can apply for.
This provides a number of advantages for the small business owner, not least, you don’t have to find additional cash perhaps at a time when business is slow. In addition, because it’s a loan, you can actually deduct the loan costs from your business’s tax bill. Lastly, though, if the loan is for expansion, the additional revenue from the expansion should increase your profits, thereby increasing your ROI by a healthy amount and your business’s value.
Naturally, such loans will have contracts the fine print of which you MUST understand before you jump in.
Sponsored by Advance Restaurant Finance.