Funding for Startup Restaurants

Contrary to what most people believe in, restaurants aren’t a sure deal when you plan on starting one. In fact, it’s considered as “high risk” to the point that not a lot of investors would be willing on investing in one.

You might think that because it’s food, it’s never going to be out of business. But with the many resources and places for food now, starting a restaurant is as risky as starting whatever type of business you may have.

Do You Need to be Rich to Start a Restaurant?

I know you’ve heard the phrase “you don’t need to be rich to start a business” at least once in your lifetime but how true is this? Well, to clarify and to put an end to all of the fuss – it’s true and it’s false. The true part is that you don’t really have to be rich to open your own restaurant or your own business; and it’s false because you really need to have some sort of fund to do so.

Just like any other type of business, a startup restaurant is rather a more complex and a more complicated risk than it is being simple. However, there are quite a few ways on how people can get financing for startup restaurants.

What Restaurants Need

Before actually diving into the fact that you need resources, as an entrepreneur, you need to be prepared for everything you need such as:

• A business plan
• Costs of startup
• Business projection or cash flow forecast

Restaurants are actually comprised of a lot of things like the location, the security, the menu, as well as the chefs that would do all the work and the kitchen staff for it. When a restaurant opens, it is expected to be on full load unlike other businesses that can take it slow.

When you have all the essentials ready, it’s time for you to check how you can get financing for your restaurant startup.

Where to Get Funds for Startup Restaurants

Similar to how you can get funding for any type of business, securing money for your startup restaurant can be done through debt and through equity. These options include:

• Help from friends and family members
• Investors
  • Angel Investors
  • Venture Capitalists (VCs)
  • Crowdfunding Sources
• Through Loans
  • Bank Loans
  • SBA Loans
  • MCAs
  • Lines of Credit

These are the most common ways on how startup restaurants can gain funds and to cut it short, there’s not an option that is best because the source of funding would be dependent on the business owner and how they plan on repaying their debt.

Usually, seeking help from investors would run the risk of the business owner losing a percentage of the company because they’d be selling a part of their company to the investors in exchange for the funds they need.

When dealing with loans, on the other hand, they would have to make payments with interests.

Where You Should Go

You’ll never run out of options with us here at SoFlo Funding. We’re a lending company and we cater to the needs of consumers, businesses, and even entrepreneurs. Our goal has been the same since we came out to the market – and that is to help whoever is in dire need of one.

Our resources for financing startup restaurants could either be through a business loan, through business lines of credit, or through creative financing. Each of them has their own benefit and they’ll be more effective in certain circumstances.

If you are planning to purchase a place, then getting our business loan would be the best because we’ll place the property as the security of the loan. If the place is settled and you need funds to start, then we can go with business credit lines; doing so will allow you to have money you can draw anytime as long as it’s within the limit we’ve set for you.

However, if you need both, we can get you creative financing. This’ll be the start of your business credit journey and you have to make sure you build it well.