Over the next three days, PointBlank will explore why working capital loans work for small businesses. Today, we cover applications for the restaurant industry.
If making your restaurant bigger and better isn’t on the menu, it should be.
Yesterday, we took a look at how working capital loans can help automotive businesses. As it turns out, that kind of financing is also an ideal fit for restaurants, who have a host of needs year-round for capital. Let us fill you in.
Let’s turn to one of our famous hypothetical examples. Let’s say you are Philla Plates, owner of a popular Italian restaurant that does brisk business year-round. You’ve got to do your repair work on the fly, and you’d really like to expand your menu. The length of the process involved in getting a bank loan makes you leery of getting it.
Here’s where working capital loans* make a difference. You can use such a loan to get a great deal on inventory, which could be the meat you need to create your soon-to-be award-winning veal parmesan. You could use it to sink into a down payment on a marketing campaign that talks about your commitment to local ingredients, an extremely popular trend now. In essence, you can use it to ensure your rapid growth in the local community continues.
That’s why it’s worth putting working capital on your plate.
The Other Benefits
Of course, the turnaround time is usually fast, too. That’s nothing to sneeze at. There’s also tax benefits associated with the financing, which is another plus.
While restaurants with great business credit can use working capital loan, so can businesses who have struggled a bit due to the recession. That’s a huge advantage for those restaurants who are on the cusp of big things but need that extra advertising or payroll help to push them over the top.
So dig into working capital, restaurant owners. Are you considering a loan down the line?
Free eBook: Working Capital 101
Terms You Need to KNow
Whether it’s interest rates vs. rate factors, or determing ROI vs. cost-of-money, this ebook is a glossary of terms that every small business owner should know.
*Working capital not available in the following states: AK, DE, ND, VT