Restaurants now have access to the best business loans as the digital lenders have changed the way restaurants used to be evaluated for business loans. Here are the top 5 options for small business loans for restaurants.
A few years ago the restaurant owners had a very limited choices to get access to business loans as the traditional lenders only wanted to provide loans to those restaurants that could provide guarantee in the form of collaterals that could be there residential property or the business and since most of the restaurant owners run their business on the rented premises getting access to small business loans for restaurants was almost impossible. Also, they took a lot of time to process these business loans, which made opting for these loans even more unpleasant as an experience.
However things has changed now with the arrival of the digital lenders that have increased the scope of getting business loans for the restaurants as they evaluate the creditworthiness of restaurants on the basis of their business transactions and hence the small businesses now have multiple options to get access to the business loans. Here are the top 5 options for the restaurants:
- Working Capital Loan
Restaurants need to run their business even during the lean periods, be it off-season or the weekends for the restaurants that serve the office goers. However, to survive these periods the restaurants need access to the working capital loans. The digital lenders like Indifi are now providing the working capital business loans on the basis of their transactions with the delivery apps, these are short term loans which help restaurants to overcome the lean periods and overcome the little costs that they need to spend in between to boost up their sales for example spending in marketing promotions for a special festive occasion and so on.
- Term Loan
Small restaurants often need to invest in their business for long term returns, these investments may be like setting up a cloud kitchen, modernizing the kitchen, hiring a consultant to revamp the menu or revamping the seating arrangements and look and feel of the restaurants. All these use cases require long term investments for which the restaurants need business loans which they can repay over a long period. With the digital lenders like Indifi restaurants can now get access to term loans basis their transactions with the food delivery apps or the customer transactions in the restaurant.
- Merchant Cash Advance
Merchant Cash Advance is a unique product for small business loans for restaurants offered by the leading digital lenders like Indifi. Merchant Cash Advance or MCA helps the restaurants to get access to business loans basis the transactions against the card swipe machine or the payment wallets. Since this is completely based on the customer transactions a restaurant is always in control of the business loan and the lenders like Indifi even offer the flexibility to repay in monthly, fortnightly or even weekly installments and even link it to transactions.
- Loans without EMI
Paying regular EMI or the equated monthly installments has always been a challenge for the small restaurants as the earnings of a restaurant keep fluctuating and it becomes very difficult for restaurants to maintain the same level of EMIs all the time. Thus, the digital lenders like Indifi offer unique small business loans for restaurants to help them overcome these challenges. The loans offered by the likes of Indifi are based on business transactions which may be based on transactions with the food delivery apps or against the card swipe machines. Therefore, the restaurants have now the flexibility to link their repayments to transactions and not worrying about the EMIs anymore. A lot of restaurants choose this option and often end up paying for their business loans earlier than initially planned with this flexibility.
- Unsecured Loans
Providing collaterals has been the biggest roadblock for the restaurants to get access to small business loans for restaurants and with the rise of the digital lenders like Indifi who offer the business loans to restaurants based on the business transactions and not against collaterals as is the case with the traditional lenders. Thus, restaurants now have access to unsecured business loans based on business transactions, these loans are quick and simple and restaurants can get these loans as quickly as within 24 hours for loans up to IR 50 Lacs.