It is not uncommon for hospitality business owners to need bar financing. After all, opening a new restaurant or bar business is not cheap; many estimates that it can take over a half-million dollars to get such a business up and running. So, where will you go for funding?
Here are a few financing options to consider for your bar business:
Traditional Lenders
Traditional loans are usually repaid over time in fixed payment amounts. These are usually offered by banks, credit unions, and some online lending institutions.
The Small Business Administration (SBA)
Don’t overlook the SBA for funding when it comes to a new or small business. The payment terms are lengthy and interest rates tend to be lower than other lending options.
Equipment Loans
Equipment loans are just that: money to pay for the equipment that you need for your hospitality business. These are usually secured by the equipment that you purchase with the loan, collateral to ensure repayment of the loan.
A Business Line of Credit
A business line of credit is an excellent source of funds during an emergency or crisis. There may be higher interest rates on these types of loans, but you get the money quickly.
Merchant Cash Advances
Once you are established, you can utilize the option of a merchant cash advance for the funds that you need. After you get the money that you need, the lender collects a portion of your card sales- credit and debit- as repayment of the debt.
Invoice Factoring
You also have the option of selling unpaid accounts or invoices to a lender for the money that you need now. This third party will collect these invoices for you, in order to retrieve the money that is owed.
Consider alternative sources of funding for your bar, nightclub, or restaurant. Call or visit Private Client Capital Partners to find out more about lending options today.