As a restaurant owner, you have access to many different business financing options. Not all are created equal. Finding the right funding source, at the right time, can save you serious money. Before applying for any financing, take care of both your personal and business credit scores first. They’re the main reason restaurant financing gets denied. Business credit cards: These are useful for unforeseen costs. Plus, they’re a viable option if you need low-end working capital. Just keep in mind business credit cards have high interest rates, which can double if you have a low business credit score. Bank lines of credit: If you can handle upfront fees and the possible requirement to provide collateral, consider a bank line of credit. This funding method provides working capital and conservative renovation financing at a continuous rate. Traditional bank loans: For larger funding endeavors, look into getting a loan from a bank. These loans, which banks more often grant to longstanding restaurants that want to grow, offer affordable terms and interest rates. SBA loans: Newer restaurants that can’t get financing from a bank can have better luck with an SBA loan. Although these funding vehicles require more paperwork and a strong FICO small business credit score (FICO SBSS), they have beneficial terms and rates. Alternative lending:This option typically carries high interest rates, but you’re usually more likely to approve and turnaround can be as little as a few days. It’s a great choice for fast access to working capital as well as funding for short-term costs and campaigns.

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7. http://www.foodservicewarehouse.com/education/how-to-start-a-restaurant/funding-your-new-restaurant/c28287.aspx
http://www.hbs.edu/faculty/Publication%20Files/15-004_09b1bf8b-eb2a-4e63-9c4e-0374f770856f.pdf
http://newyorkfed.org/smallbusiness/Spring2014/
http://www.creditcards.com/credit-card-news/help/7-things-know-business-credit-cards-6000.php
http://blog.surepayroll.com/april-2014-scorecard/
http://www.fsrmagazine.com/kitchen-sink/benefits-alternative-lending-full-service-restaurants
https://www.sba.gov/content/managing-your-business-credit
Sources