Alternative Lending Benefits for Your Restaurant

Alternative Lending Benefits

When it comes to a standard bank loan, small-business owners and restaurateurs are often the ones left out in the cold. Banks see restaurants as too high-risk to fund, so oftentimes they will have a strict application-denial policy in place–regardless of your stellar credit score or years in operation. According to FoodNewsFeed.com, “Historically, restaurants are considered one of the riskiest industries for entrepreneurs, and banks have long been reluctant to grant loans to owners.”

Even though restaurant sales topped nearly $800 billion last year, it’s hard to say whether or not banks will take notice of this promising landscape. Luckily, there are plenty of alternative lending options available to help you realize your business dreams. Let’s take a look at some of the ways a restaurant loan from ARF Financial can finance your success!

Hiring New Employees

Your staff is the backbone of your restaurant, so having reliable team members is paramount to your success. A loan can help you bulk up your payroll, allowing you to hire employees—from hostesses to servers to cooks—who can ensure top-notch customer service.

Replacing Old Equipment

Equipment, especially items used as frequently as the grills, ovens, and refrigeration systems in your restaurant, are highly susceptible to breakdowns. Whether you need to upgrade or replace something, a line of credit is a viable option. Lines of credit are set amounts of money a lender has agreed to loan you, and you’re able to draw from them whenever you need cash. A line of credit from ARF offers 24-hour access to 5 separate loan drafts over a 6-month period, so you can draw funds as needed and pay interest only on what you take.

Expanding Your Menu

A lack of diversity on your menu, or a lack of new items, can be a trap that restaurants easily fall into. After all, if your food is working, why rock the boat? But customers can get bored, and they may not even know what they’re missing if you neglect to perform a menu refresh. Sometimes, changing your menu requires hiring new chefs or investing heavily in updating your printed versions and restaurant signage. That’s where alternative lending can be a great help—you’ll be equipped with the cash you need to make this critical investment in your establishment.

Marketing Plans

If you’re not investing in a robust marketing strategy for your restaurant, you could be losing out on significant revenue. Loans are a great way to set aside the funds you’ll need to increase your brand awareness, whether it be through radio ads, television spots, direct mailers, or an email-marketing plan. Social media is also a winning venue for marketing your restaurant, and the cost is usually minimal. Use your funds to hire a marketing firm or social media director, and watch the revenue stream in.

At ARF Financial, we know time is money. That’s why our online loan application is quick and easy. It takes just minutes to fill out and it won’t affect your credit score. We grant approvals within 24 to 48 hours and funding within 3 to 5 days, plus you can defer up to 50% of your principal. Clients love our clear loan terms and fixed payments that aren’t tied to credit card receipts. APPLY NOW for an offer!