How to get financing for a New Restaurant
The suggested financing sources for restaurants are similar to those for any new business. Entrepreneurs should choose to draw upon their own financial resources if they have the means and wish to retain independence and management control. If new business owners lack personal financial resources, they must look elsewhere for funding, such as through friends, acquaintances, business partners or through loans from financial institutions.
Small Business Loans
The U.S. Small Business Administration (SBA) has a number of loan programs for fledgling entrepreneurs. The SBA 7(a) Loan Program is designed to help businesses in disadvantaged areas by offering lower-dollar loans up to $250,000 to foster economic development. The SBA Microloan program is designed to provide funds for working capital, inventory, supplies, furniture, fixtures and equipment. The loan is not to be used for debt reduction or real estate purchases. The average microloan is approximately $13,000 with terms up to six years. Securing even a government backed loan can still require good credit, so be prepared to have your finances in order.
Partners and Angel Investors
Entrepreneurs can always seek out either business or investment partners to both share in the burden of financing, and take an active role in management of their business. When entering into any partnership, it is always wise to document the roles and responsibilities of the individual partners, as well as the division of investment proceeds or losses. It is best to consult with an attorney to establish a partnership agreement or similar legal business form.
Starting a new Restaurant and buying Restaurant Equipment in Florida can be a challenge but with the right strategies you can get started.
