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How to get a restaurant loan with bad credit?

Getting a restaurant loan when you have bad credit can be difficult, or even close to impossible. Traditional lenders (a.k.a. banks) are extremely cautious about the market, the costs involved and the overall competition of the catering industry. Because of this, it’s important that you explore all the different restaurant financing options available.

Why is it hard to get a restaurant loan?

Let’s be real, managing a restaurant business is hard. As a restaurant owner, you have so many things to consider. From staff to customer experience, you have to make sure that everything is running smoothly in a business with fine margins. As a result, traditional banks are most likely to take a closer look at your personal finance, credit score, and any outstanding debts.

This examination of your business may disqualify your restaurant for a small business loan right away. Maybe you have a bad credit, not enough collateral to pledge, or maybe the bank offer is not to your liking. Even well-known franchises have issues when dealing directly with traditional banks.

How to get restaurant financing with bad credit?

Even though banks can be reluctant to give you the money you need, there are other reliable business financing out there. In fact, you are most likely to get the funds you need by going for another type of financing.

For example, a merchant cash advance is a valuable resource for all small businesses. It’s a flexible financing with repayment based on your daily sales. For that reason, a good credit score is less of a priority compared to your monthly revenue.

Consider a merchant cash advance for your restaurant

A merchant cash advance is an ideal financing when looking for a restaurant loan with bad credit.

But you’re probably wondering:

How does a merchant cash advance work?”

Well, it’s very simple.

You receive a one-time sum of money that you repay with a percentage of your daily sales.

restaurant loan with bad credit - Merchant cash advance explained

Easy, right?

And because it’s a percentage of your sales rather than a fixed monthly amount, you repay at your own pace.

In other words, you repay faster when you do more sales. And you repay less if you have a slower month.

Now that you know how it works, let’s see what you can do with it.

What can you do with your restaurant financing?

A merchant cash advance is a powerful tool if you’re looking for a restaurant loan with bad credit.

And the reason is very simple: you can use your cash advance for anything that would benefit your business.

Literally, anything.

As a business owner, you know your business better than anyone. You know what it needs, and most importantly, when it needs it.

And that can be an issue with a traditional loan. Simply because you are tied to specific terms.

On the other hand, a merchant cash advance lets you adjust your investment over time. So you can make the most of your cash.

That being said, we’re going to highlight some reliable ways to invest your money.

Purchase new equipment

Probably one of the most common reasons to get a restaurant loan with bad credit.

And honestly, that’s easy to understand why.

New equipment can have a drastic impact on the efficiency of your operations.

But as you know, professional grade kitchen appliance can be extremely expensive. That’s when extra capital can come in handy.

Buying new furniture

Are you expanding your place? Or simply want a breath of fresh air? Then buying new furniture for your restaurant, bar or coffee shop could definitely help you.

This way, you can provide a overall better experience to your customers. As a matter of fact, nothing beats comfy chairs in a welcoming environment.

The idea is to make the experience enjoyable for your customers. Make them want to come back again. And again.

Hiring new staff

Let’s face it, no matter how hard you work, you will need more staff at some point. A restaurant loan is ideal to cover the cost of hiring new employee, like salary and training.

And a merchant cash advance shines in this stituation.

Because you pay back with a fixed percentage of your sales, you’re not crippled by repayments while you’re training new employees.

And, you start repaying faster once they are fully trained and efficient.

That’s how to get a Restaurant Loan with bad credit

Here’s you have it. The best way to get a restaurant loan with bad credit is to explore all your options. Restaurant financing do exists, even when your credit is poor.

In this case, a merchant cash advance is a solid option. There’s no collateral, and the amount you get will mostly be based on your monthly sales rather than your credit score.

Besides, the process is really quick and easy. You can start your application for free and get the funds on your business account within two days.

There’s no massive amount of paperwork, no impact on your credit score, and no pressure.

Take the leap and start investing in your restaurant now!