Opening a restaurant can be a thrilling endeavor for any entrepreneur. Whether the restaurant's owner is the chef or just the affable host, his or her reputation is based on more than the specialty of the house. It's also based on the owner's ability to manage the finances of the enterprise. Acquiring the appropriate restaurant equipment financing can be one key to building a successful reputation... and that means finding the right lender.
Just as the type of restaurant determines what type of equipment is needed, the type of equipment can determine what sort of lending company is needed. The restaurant owner needs to find a lender who understands that an ice cream parlor has different equipment needs from a barbeque joint. The former will need top-of-the-line freezers while the latter will need a smokehouse that really smokes.
While a French restaurant that serves haute cuisine may draw adult diners of discriminating dress and manners, a hamburger palace will attract the jeans and boots crowd along with their children. The latter may need to replace its vinyl-covered booths more frequently than the former needs to replace its silk-upholstered chairs. The right lender will recognize these disparate needs and not try to influence the buying choices of the borrower. In other words, the restaurant owner knows how to determine his equipment and furniture needs and so needs a lender who understands that.
So what should a lending company offer where restaurant equipment financing is concerned? Fast loan approval is necessary, especially when it comes to replacing a deep fat fryer that has broken down an hour before the big dinner run starts. If the equipment is leased, the leasing company should be able to replace it immediately. But if the restaurant owns its equipment and is experiencing a slow-down in its cash flow that keeps it from purchasing a new fryer, then a responsive lender is essential. Downtime can be a death knell for a restaurant, and any experienced restaurant lender will recognize that.
Fortunately, companies that lease out restaurant equipment often offer financing options as well. Like a bank or other lending institutions, they offer loans that can be paid off on a monthly basis over time. No collateral is required because the equipment already belongs to the lease/lend company. The approval process is usually quick and simple, and payment terms are fair.
Restaurant equipment financing is generally provided at fair and fixed interest rates by lease/lend companies, too. Most restaurants may be small, single-location businesses but they deserve the same financing breaks that the big chain restaurants receive. After all, with small profit margins, all restaurants need small interest rates, too, in order to help them keep their expenses down and the chicken frying.
Hidden fees are another factor that can affect a restaurant's profit margin. The fewer fees the better when it comes to financing or leasing restaurant equipment.
But if leasing isn't an attractive option to a restaurant owner, many corporate credit services have loan officers who understand restaurant equipment financing as well as leasing companies do. They know the difference between a point-of-sale computer system for a restaurant and one for a dress shop. They understand the cash basis under which most restaurants operate. They understand the nature of the business, that time is of the essence when it comes to purchasing or leasing new equipment, and they stand ready to assist their borrowers when fresh financing is needed.
Corporate Credit Concepts specializes in Restaurant Equipment Financing. For more information about Restaurant Equipment Financing and how it might benefit your business, please CLICK HERE for a free phone consultation.