Sponsored by: BFS Capital 

Whether it is to pay for a new kitchen range, remodel the dining room, open a new unit or launch a marketing campaign, securing financing is vital to the success of a restaurant business. In many cases, financing is the key to innovation and leveraging new opportunities which distinguish one brand from another.

Small, independently owned restaurants have an especially acute need for financing to compete against well-funded large chains. This is particularly true in a day when consumers are seeking a distinctive, memorable restaurant experience built around top-quality food, ambience, and service.

Certainly there are lots of operators in the small-business category. More than seven in 10 restaurants are single-unit operations and more than nine in 10 have fewer than 50 employees, according to the National Restaurant Association.

The problem with other lending products. However, many small, independent businesses — including restaurants with consistent bottom-line profits and sound business plans — find it difficult to obtain loans from other sources. That is especially true for new restaurant operators just breaking into the industry. Even operators with good credit and access to loans may be wary of the time-consuming application, extensive paperwork and inflexible repayment arrangements associated with traditional financing.

The BFS Capital difference. Many restaurant owners have found it advantageous to seek quick, flexible financing through BFS Capital, a trusted and experienced lender, which has provided over $1.5 billion in working capital to more than 18,000 small businesses, including more than 6,700 restaurants, since 2002. A champion of small business, BFS Capital says it can help owners obtain the capital they need to keep their competitive edge and grow. Funding solutions ranging from $5,000 to $500,000 can be used for almost any business expense.

Compared to seeking financing through other lenders, an operator who works with BFS Capital will find a quick and simple application process with minimal paperwork, a same-day decision and funding in as few as two business days.* In addition, repayment options are flexible.

A BFS Capital relationship manager works closely with each operator to help determine the best financing solution for their business. After funds are received, customers can call the relationship manager directly with any concerns or issues. Outstanding customer service is one of the main reasons BFS Capital has earned an A rating from the Better Business Bureau.

Term loan versus merchant cash advance. BFS Capital offers lending programs that fit the different business models of restaurant owners and provide easy repayment.

A Term Loan is typically offered to businesses with consistent sales volume and daily bank balances. Payments are fixed with terms ranging from four to 18 months.

A Merchant Cash Advance may be appropriate for a seasonal business or one that has ebbs and flows in income. The amount paid back is a percentage of daily credit card takings. The loan may be repaid through the restaurant’s existing cash flow via credit card processing.

How financing fuels growth. Esthetic touches in the restaurant — such as a fresh paint job, new carpeting and updated lighting fixtures in the dining room — create a welcoming, on-trend ambience that attracts customers.

Competing with the big chains may also mean investing in digital menu boards, self-serve ordering kiosks in the dining room and mobile payment apps. High-tech solutions like those keep service lines moving and attract convenience-driven consumers. Thus, for a variety of reasons, access to capital can make the difference between a restaurant business that experiences steady, sustained growth and one stuck in the doldrums.

Other ways a capital infusion comes in handy:

• Repairing the building

• Launching a franchising program

• Hiring and training additional staff

• Developing a retail food product

• Updating the website

• Paying taxes

• Revising menus with fresh graphic design

• Inventing limited-time menu offers

• Starting a loyalty program with customer rewards

• Repaving the parking lot

• Launching a delivery or takeout program

• Devising a social media content strategy

• Stocking up on inventory

• Providing a short-term boost in cash flow to sustain the restaurant through slow business periods

Getting started. BFS Capital is ready to get operators the finance they need to grow. Visit https://www.bfscapital.com/restaurants, or call 888-732-6560, and get funding in as few as two business days.*

* Subject to receipt of required documentation and underwriting approval. Not all loan applications are approved. Same-day decision and funding in as few as two business days also subject to processing time by merchant’s bank and financing for more than $100,000 may require additional underwriting review time.

"These products can be either business loans or merchant cash advances. Business loans may be provided by third parties and are subject to lender approval. Products offered by BFS Capital and affiliates are not consumer loans. In California, loans made or arranged pursuant to a California Finance Lenders Law license by BFS West Inc. or made by other lenders. Time to funding subject to processing time by merchant’s bank.”