The restaurant industry isn’t for the faint of heart; to succeed in it, an aspiring restaurant entrepreneur must have an intrepid spirit, streetwise judgement, and an uncanny knowledge of their customer base. As such, restaurants can be a volatile place to cut one’s financial teeth. And banks can be hesitant (to put it mildly) to invest in a field that they don’t understand –– or fear won’t offer them significant returns. This is especially true if you’ve got bad credit. But don’t fret. The good news is, there’s more than one way to get the funding you need for your restaurant, even if you have bad credit. Here are a few important things to consider when looking for restaurant loans for bad credit:
Why The Bank Says No
To understand why you may need to pursue other options than the bank, it’s beneficial to understand why they often decline restaurateurs in the first place. For one, most banks consider the restaurant industry too risky to give loans to in the first place, even though this is a substantial misconception on their part. Furthermore, banks are hamstrung by the fact that they place inordinate value on a loanee’s credit. While banks are fixated on the past, we’re focused on what you and your restaurant can achieve.
Weighing Your Options
What might work best for you and your business depends on many factors. When applying for a loan you need to take everything about your restaurant into account. Are you just starting out, or do you need a cash advance (MCA)? How long have you been in business? What’s the status of your location? What’s the potential for growth? Your credit score is only one of a number of considerations an alternative lender will inquire about when you contact them, so it’s important that you understand the pros and cons of your situation. Knowing where you’re at as a business owner, and what you need to achieve your goals is an imperative step in landing a restaurant loan for bad credit that works for you.
Finding Your Ideal Solution
The restaurant business can be a stressful enterprise; but struggling on without the capital you need to improve your restaurant won’t lead to long-term success. Fortunately though, there are alternative lenders who will help you finance your dream. Remember: you took a risk to follow your dream –– and your ideal lender should be willing to put their faith in you because of it.
Make it Happen
Ready to secure the finances you need to get your restaurant off the ground? Contact the National Business Capital team today! We have experience working with entrepreneurs in the restaurant industry, and can help you identify the financial solution you need –– even with bad credit. And for more information on alternative lending sources, check out our free ebook on how to get funding when the banks say no: