You’d be hard-pressed to find a restaurant that would turn down an affordable small business loan at any time. This is largely because in very few industries is the need for stronger cash flow more obvious to outsiders. All businesses make mistakes, but in the case of restaurants, the outcome is extremely difficult to conceal. If finances are not managed correctly, guests (and even potential guests) will take notice. So, why don’t more restaurants look into small business loans or develop relationships with business lenders that specialize in their industry? One guess is the same reason any business would make the same decision: they are too busy.
You can’t blame an already-swamped business owner for not wanting to compile stacks of paperwork or play phone/email tag for weeks on end. But thanks to companies like United Capital Source, this unfairly tedious application process is no longer necessary. It now takes just a few business days for restaurant business loans to be approved and distributed. Restaurants can fix their problems the moment they arise, and here’s a few of them:
Waiting For New Equipment
Broken equipment is among the most annoying yet inevitable problems for all types of restaurants. Essential tools like ovens and freezers tend to break down at the worst times. When it’s busy, you need to drop everything and do whatever you can to secure the new equipment as quickly as possible. When it’s slow, some restaurants barely have enough money to pay their bills, let alone afford an investment that could very well go unused for months. Tech companies have recently capitalized on this dilemma by building apps that make it much easier for restaurants to replace equipment with just a couple of clicks. One example is Humrun, an app that provides a clear-cut path to everything from new spatulas to faucet pipes.
Apps like Humrun have consequentially created a new standard for replacing equipment. Restaurants are now expected to be able to replace important tools within a moment’s notice. Lucky for them, UCS offers small business loans for restaurants capable of covering expensive replacements at any time of the year and offsetting their effect on cash flow. Different pieces of equipment take different amounts of time to improve revenue or, despite their crucial role, do not have a direct impact on revenue at all. We can develop terms that let you pay off the majority of your debt when you are actually using the equipment and now serving more customers than before.
Unacceptably Slow Service
While most restaurants have accepted that equipment is a necessary expense, many apparently do not feel the same way about staff. Slow service is one of the most widespread complaints from restaurant patrons. It’s honestly shocking how many restaurants fail to keep enough employees on staff during their busiest months of the year. The only logical explanation is the cost. Skimping on staff might have been acceptable before the Internet but these days, slow service can easily overshadow high quality products. Having more people on staff ultimately allows you to serve more customers, who will surely sing your praises to their friends after experiencing your speedy service.
United Capital Source specializes in helping restaurants increase and maintain staff during cash squeezes. Our restaurant business loans have frequently been used to train new hires when it is slow so they will be ready when it gets busy a few weeks later. Other borrowers gained the means to keep an above average amount of people on staff in between seasons, since it can get very busy or very slow at any time. But in almost all of these cases, we did our best to make sure the borrower did not have to make significant payments during slow periods, even if one such period came on unexpectedly.
Limited Drink Menu
Picture this: There are two restaurants with similar-quality food in an area known for its nightlife and upscale demographic. Both have exquisite scenery and customer service. But one of them fails. This is a huge surprise until former customers of both restaurants begin to realize what differentiated the two competitors: their drink menus. Offering only a few different beers, wines and mixed drinks just doesn’t cut it in 2018, especially if you are located in an area filled with craft beer aficionados. There’s a good chance that the latest restaurant to go under in your town did so because of an unsatisfactory drink menu.
Maintaining a large drink menu is expensive, but you can reduce the cost dramatically if you purchase certain items at the right time. And when you develop a good relationship with suppliers by paying well before the due date, you are likely to receive discounts and other exclusive privileges. Restaurant business loans from UCS are the key to capitalizing on such opportunities, regardless of your financial situation at the time. Many of our borrowers use various business funding programs to stay current on bills or order inventory in bulk several months before it will be used. They end up saving a great deal in the long run, though the biggest bonus is probably a business partnership that will come in handy when you need it most.
It Couldn’t Be Any Easier
If these three scenarios made small business funding sound easy, it’s because it is! At UCS, all you have to do is prove that your business has a steady stream of revenue and isn’t merely looking to scrape by. We work with plenty of seasonal businesses, and typically have no issue granting approval for businesses that are in slow periods or have tumultuous financial cycles. And since many of our small business loans are tied directly to sales, you will likely find that the only thing easier than accessing funding is paying it back.