Opening a restaurant is a considerable undertaking. From menu creation, design of the space, the lighting—there are many moving parts. One of the most serious investments in opening a restaurant is the kitchen equipment, appliances, and furnishings. For a restaurant entrepreneur, paying for all the equipment upfront can be extremely expensive, and it is an additional gamble in an industry that is already considered financially costly.
Let’s face it, your customers come for the great food and experience, but without the refrigerator, stoves, grill, prep tables, etc., there will be no great food or experience. That’s why you should consider restaurant equipment loans, so you can acquire all the equipment you need with your costs covered and with affordable payments. These loans allow for greater financial security and access to better equipment than paying in full for everything.
Here are five reasons restaurant owners use restaurant equipment loans:
- Preserve Cash Flow
Of course, one of the most obvious reasons to use restaurant equipment loans is to preserve and safeguard cash flow. You not only receive the capital you need, but you also can make manageable monthly payments that work within your budget. Additionally, this frees up cash for payroll, inventory, and other expenses.
- Access to High-Quality Equipment
With restaurant equipment loans, you actually gain the freedom to acquire higher end commercial-grade equipment that you otherwise may not have been able to afford if paying in full with your own money upfront. This equipment often pays for itself due to better performance and results.
- Faster Startup or Expansion
Without your restaurant equipment and appliances, you can’t open. Even for established restaurants who want to upgrade, there can be delays when the cash isn’t available to purchase certain equipment. It can be timely to accumulate enough revenue to support these equipment purchases, which is why many restaurateurs turn to restaurant equipment loans for quicker progress.
- Stay Competitive
As trends develop and evolve in the culinary world, so does the need for certain types of equipment. If you want to stay up to date and competitive, you need to move with the trends. Restaurant equipment loans allow you to make these upgrades easier and faster—whether it’s for energy-efficient equipment or for point-of-sale systems.
- Loan Requirements Are Less Strict
Banks typically do not offer restaurant loans, or if they do, the requirements are strict. With lenders who specialize in restaurant equipment loans, most restaurants qualify.
Let’s talk about your options and the best course of action for you and your restaurant goals.