Restaurant Loans Alternatives

Equipment Leasing

Equipment leasing companies can typically provide you with any equipment you may need. Then, you pay a monthly fee to use the equipment.

Pros

You don’t have to pay the entire amount for the equipment upfront. And you may have an opportunity to “rent-to-own”.

Cons

You could end up paying more for the equipment over time than you would pay if it you bought it upfront.

If you need cash, equipment leasing will not be useful.

Business Credit Card

With a business credit card, you can make purchases for your business. The revolving line of credit allows you to purchase inventory, pay for improvements or even pay for daily operating expenses.

Pros

Some banks offer business credit cards with limits of up to $100,000 and the balances do not need to be paid fully each month.

Cons

Interest rates and fees for business credit cards can be very high at times, especially since the government recently passed a bill to ban abusive consumer credit practices, leaving out business credit card holders.

SBA Loan

SBA loans are loans that are backed by the Small Business Administration. Should you default and not be able to repay the loan, the SBA will guarantee a certain percentage of the loan.

Pros

The Small Business Administration can provide loans of up to $2 million. They will guarantee 50 to 85 percent of loans provided by banks.

Cons

SBA loan requirements can sometimes be difficult to meet. They include a business profile, loan request, business and personal financial statements, collateral and an above average credit score.

Grants

Grants are often provided by the government for both startup and existing businesses.

Pros

Unlike loans, grants do not need to be repaid.

Cons

There are particular fields of businesses that government grants are currently aimed toward. If your business is not in one of those fields, it may be more difficult to find a grant that suits your business.

Business Cash Advance

Business cash advances are for small business owners who do not qualify for traditional methods of business financing. This business loan alternative allows merchants to factor their credit card sales and get up to $500,000 in business cash.

Pros

Business cash advance users receive fast approval, fast funding, flexible repayments and easy renewals.

Cons

Business cash advances are not for startups. They are also more expensive than other traditional funding methods.