Whether you are starting a new restaurant or renovating it to give it a complete makeover, you are going to need money to make it happen. Restaurant owners usually reach out to banks for loans to get the working capital funding. But, non-traditional solutions like those offered by alternative lending sources can be more profitable.
Why restaurant businesses can benefit from alternative funding
Restaurant businesses typically run on thin margins and demand high liquidity. This is why a small cash flow continues to be one of the biggest challenges faced by owners. According to reports by Chron.com, almost 60% of restaurants tend to shut down within the first three years. This happens because even during slow periods, you have to have enough capital in hand to pay for routine maintenance and staff salaries. Restaurants may be in need of business funding in Oklahoma when they wish to expand their facilities or open up new outlets.
You may need funds for repairing machines that can be prone to malfunctioning or mishaps. You will need to stay updated with the latest technologies and invest in state-of-the-art equipment to stay ahead in the competition. In such situations, you can apply for a mezzanine loan in Oklahoma from alternative lenders like the Alternative Funding Group. The Restaurant Hospitality Magazine reports that some owners turn to SBA loan programs offered by the U.S. Small Business Administration. But there will be restrictions on eligibility and how funds will be used. To get this done seamlessly, you can consider applying through an alternative lender. Start your search by looking for “business funding near me” in Oklahoma.
Getting SBA loans from alternative lending sources
The SBA or Small Business Administration loan refers to small business funding that is provided by the US Small Business Administration. The SBA, on its part, depends on multiple partner lenders to extend capital for small businesses that are looking to launch themselves or expand.
SBA loans can be in two categories, namely, fixed assets and working capital. So, if you apply for SBA loans, you must put down substantial business or personal collateral for supporting the loan. Moreover, the process for application is lengthy and you need to submit detailed paperwork. So, SBA loans can be very useful when you are not in a hurry and you can get flexible funding options. Usually, eligibility for this loan will depend on what your business does, the nature of its ownership, where it operates, etc. This means you have to show that your business has a proper purpose, conforms to size standards, and you have the ability to repay the loans.
Besides SBA loans, you could consider getting merchant cash advance in Oklahoma. Here, the loan provider will offer a lump sum upfront to buy a percentage of your future sales. Unlike loans where payments have to be made every month, here the lender will recoup the sales percentage through an automated approach. This can be an excellent option when your business handles credit/debit card purchases.
To get your restaurant business loan in Oklahoma approved faster, you can reach out to https://www.altfunding.com.