#1 Challenge: Not Having Enough Capital: Bank Loans
Aug 16, 2020
What Are Cash Flow Loans and What Options Are Available for Restaurants?
Between cash flow struggles, equipment malfunctions, restaurant business opportunities, and unfortunate emergencies, a cash flow loan could bridge the gap between lulls in revenue for restaurants. We explore the best cash flow loans for small restaurants that are struggling to stay afloat or looking to grow.
With a variety of financing options available to restaurant businesses, you may wonder how a cash flow loan fits into your business plan. Although cash flow lending is less secure for the lender and more expensive for the borrower, it can help companies grow and meet daily cash needs when cash flow is inconsistent or sporadic. In this article, we’ll discuss the wide range of cash flow loan options available to restaurant owners so you can find the options that work for you and your business.
What are cash flow loans?
A cash flow loan is essentially a fast and simple loan that’s used more for day-to-day cash needs than long-term needs: think commercial rent, payroll, utilities, and simple supplies. When your restaurant needs a little extra cash flow for the month, it’s best to stay clear of a traditional bank loan. The time-consuming approval process is filled with documentation and several lending decisions, which could prevent your business from getting the cash it needs in a timely manner.
Unlike other types of lending, such as SBA loans, a cash flow loan is backed by the borrower’s personal or business cash flow. In other words, individuals or companies are expected to pay back the loan with incoming funds.
Not sure which type of cash flow loan to apply for? Schedule a call with us so we can go over the options for you
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