Restaurant Financing and Capital
No restaurants are ever able to fully operate without the right amount of financing. Getting restaurant financing and capital can be done through a number of different processes. Each of these options can be used to help get any type of restaurant around Canada to become operational and ready for business.
Sometimes it can be a good idea to find some form of restaurant financing and capital through different investors. Many people consider talking with family members for getting assistance but this may end up including some risks. Also, an angel investor, which is a single person who offers a good amount of capital in a restaurant in exchange for a part of the ownership, can be used. It can be a real challenge to get this to be used though.
This is why other restaurant financing options should be considered. For example, it can be easy to get a good loan out from a bank in Canada. A variety of banks offer business loans but it will help to take some extra care into finding banks that are willing to help. It is widely believed that about half of all restaurants in Canada will fail. Therefore, there are no guarantees that every single bank in Canada is willing to support restaurant financing services.
However, restaurant financing can be handled by a variety of different providers. These include advance loan providers that are available throughout Canada. Many of the groups that are used to provide loans are ones that operate with the support of the Canadian Restaurant and Foodservices Association (http://crfa.ca) in mind.
The CRFA is even helping to get more restaurants to operate with more financing. In 2009 the CRFA was able to create a proposal to increase the maximum loan guarantee that restaurants can use for restaurant financing and capital needs. The guarantee used under the Canadian Small Business Financing Program from Industry Canada (http://ic.gc.ca) has increased the maximum loan guarantee from the original $100,000 all the way up to $350,000. Also, loans that are used to get the real estate needed to get a restaurant going can be worth up to half a million dollars in value.
The ability to get capital for the restaurant to operate with is easy to handle. Many different services are being offered through different vendors for the capital that is needed to get a restaurant up and running. For example, there are many providers of equipment and tableware to choose from. Furnishings can also be bought through loans. The service providers that a restaurant can handle can be researched through the CRFA.
Being able to get plenty of financing and capital ready for a restaurant is the key to getting one of these great businesses to function properly. Be sure to take a look at these factors when looking to get financing ready.
Remember, it is best to watch for where anyone goes for assistance because so sources for financial or capital help might not always be legitimate or supportive of a restaurant’s particular needs. Asking for a merchant cash advance through a proper agency will help though.
Visit http://www.crfa.ca/news/2009/more_credit_available_for_restaurants.asp for added data)