Restaurants have unique financial requirements. They may need new equipment or more working capital. They may want to expand or start a new business. Whatever the reason, getting a business loan can be challenging for anyone in the restaurant industry. At Coastal Kapital, we understand the difficulties that can surround getting a restaurant loan.
According to the Small Business Administration (SBA), getting a restaurant business loan is difficult because of the perceived market volatility. Ongoing challenges such as supply chain disruption and labor shortages can make traditional restaurant funding options out of reach. The potential risk also seems too high for many financial institutions. But Coastal Kapital has been offering financing options since 2007 and looks at restaurant risk differently. That’s why we offer three types of financing designed to meet a restaurant owner’s needs.
Small Business Loans
Depending on your restaurant size and your financial needs, a small business loan may be a viable option. Our account executives can guide you through the process, whether you are looking for a traditional SBA loan or an SBA Express loan. Traditional loans can have terms as long as 30 years, while express loans can take less than two weeks to approve.
Line of credit options are also available for small business funding. Sometimes you just need funding to get you through a slow season or to cover an unexpected repair or equipment purchase. Whatever the need, a line of credit can provide that peace of mind that lets you sleep at night.
Maybe your existing location needs new equipment, or you are planning to open another location and need more equipment. Coastal Kapital offers a variety of financing options, such as:
Equipment Finance Agreements (EFA)
This financing option is similar to purchasing a vehicle. Coastal Kapital pays for the equipment on your behalf, and you agree to then repay the amount with interest. The equipment is available for immediate use, and repayment terms can be structured based on individual needs.
10% Put Option Buy
Instead of a 10% purchase option at the end of a lease, the 10% purchase upon termination requires that the equipment be purchased at the end of the leasing term for 10% of the purchase price.
Fair Market Value (FMV) Leasing
As a restaurant owner, you make a monthly payment for the term of the lease. The payment entitles you to the latest in equipment upgrades. When the lease ends, you have the option to purchase the equipment at fair market value, among other options.
At the end of the leasing period, you have the option to purchase the equipment for $1.00.
The best option depends on your specific needs and the equipment being purchased. Coastal Kapital’s consultants can help you determine the best financing option for your situation. With our flexible options, restaurant owners can find the financial resources to acquire the equipment they need.
Working capital — or, more accurately, the lack of working capital — is the primary reason small and startup businesses fail. Because many traditional financing providers, such as banks, view restaurants as high-risk ventures, receiving a working capital restaurant loan can be challenging. Our experience in the restaurant industry means we use industry-specific evaluation criteria to help owners receive the capital they need to grow their businesses. We offer simple application processes that deliver financing quickly.
Our restaurant loan solutions include:
- Short-term micro business loans ranging from three months to two years
- Micro business loans with a value of up to $3 million
- Expansion and inventory loans for up to $500,000
- Two- to five-year collateral-backed loans
Whether you need working capital now or two months from now, we have the expertise to find the best solution for your financing needs.
Why Coastal Kapital
As an online lender, Coastal Kapital offers a range of financing solutions for people in the restaurant industry. Our process is designed to get you the funds you need as quickly as possible. Visit Coast Kapital to complete our one-page application. We will respond within hours. Our lending experts will work with you to find all available financing and restaurant loan options to ensure that you have the funds you need to grow your business.