Guide to Business Loans for Restaurants and Cafes

1. Guide to Business Loans for Restaurants and Cafes

2. Business Loans for Restaurants and Cafés • Running a restaurant or café business requires getting all the ingredients right. These include quality food, friendly staff, exceptional customer service and a good location. • Behind the scenes, cafés and restaurants need finance to get established and continue operating successfully.  • There is a range of business loans for restaurants and cafés seeking to boost cash flow and grow.

3. Here we’ll take a brief Look at a few of these Business Loans for Restaurants and Cafés:

4. Business Overdraft • A business overdraft enables you to borrow money by running a negative balance on your business transaction account. The amount of your overdraft will depend on your requirements and what the bank agrees to lend. Overdrafts usually start at $10,000 limit and are available in secured and unsecured versions. The interest rate is higher with an unsecured overdraft and you won’t be able to borrow as much as with a secured business overdraft. With either version, you only pay interest on the funds you use plus a monthly fee. • A business overdraft is usually used as a short-term solution to improve cash flow. One of the main shortcomings of a business overdraft is that it can be withdrawn at any time at the bank’s discretion.

5. Business Credit Cards • Some  restaurants and cafés use business credit cards for short-term finance needs. Although it’s easier to get a personal credit card, a business credit is recommended if you are using it for business purposes. • With a higher interest rate than other financing options, a business credit card could be expensive if you keep an ongoing balance on it.

6. Equipment Finance • Banks and non-bank lenders offer equipment loans for purchasing machinery and equipment. Often the item being purchased serves as the collateral for the loan, so no additional security is required. • Some non-bank commercial lenders specialize in funding restaurant and café equipment. • Equipment finance terms usually go up to five years, so are considered a short-term business loan.

7. Bank Term Loan • This is what often what comes to mind when people think about business loans for restaurants and cafés. • A bank term loan has a set interest rate, payments and loan terms. This makes it a predictable form of finance for restaurant business owners. • On the negative side, a bank term loan can require a large amount of paperwork and time to get approved.

8. Online Unsecured Business Loan • This form of small business finance has been growing in popularity in recent years. • Using a streamlined online process, the finances of a business are quickly, safely and securely analyzed to make a lending decision. • This is usually completed within 24 hours. If approved, the funds are transferred immediately into your account.

9. Check These Out! • Moula was founded to help hard-working business owners in Australia access the funding they need to grow. In the past, getting funding meant going through weeks of paperwork, hassle, and hurdles. We use data to assess your loan application, which means we can keep things painless and lightning-speedy. • With Moula, you can apply online with no paperwork and no hassle, and have the funds in your account the next day. • For more info on business loan calculator Check out: https://moula.com.au