Whether it’s a quick cash advance or a long-term loan, lump sum loans give business owners the flexibility you need to invest in your success. With multiple loan types, CAKE makes it easy to find the loan that works on your terms.
Merchant Cash Advances
This option allows you to borrow against future sales. You’ll get cash upfront, and repay a percentage of your daily earnings until the debt is fulfilled. Funds are available fast, with no collateral required. These advances carry APRs are high as 250%, so be sure to repay these loans as quickly as possible.
Inventory financing is intended for inventory purchases. Short repayment terms assume that you’ll be able to sell off new inventory quickly. Read the details of these loans carefully: some of them require a UCC Lien, which is risky for some restaurant owners. This option is ideal for seasonal restaurants looking to stock up before the rush.
Equipment loans cover specialized equipment costs like espresso machines and deep fryers. Lenders use this equipment as collateral, and base loan terms on a restaurant’s finances – not the owner’s personal credit score. Some equipment loans require down payments, and most come with fixed interest rates. These are short-term loans take an average of 3 years to repay.
The Small Business Administration offers larger sums of money with longer repayment terms. The 7(a) loan, for instance, empowers restaurant owners to borrow up to $5 million. These loans come with higher interest rates than most loans aside from Merchant cash advances. SBA loans are a good option for financially stable restaurant owners who are opening second locations or launching new ventures.
Restaurant loans provide a compromise of all of the best features of the above loans. Restaurant owners are typically approved in a matter of days and can take out loans as high as $500,000. Term loans have flexible terms that can range from 3 months to several years.
Restaurateurs across the country are putting loans to work for them. More information on loans is more power to make the right decision for your restaurant. You’re not alone when choosing a loan for your restaurant – CAKE makes it easy.