Mall Food Outlets Financing — What’re Your Options?
Whether you’re a big multi-chain restaurant looking to expand your business or a small food establishment struggling with cash flow, a mall food court loan can help you get the funding to successfully run and grow your business. You can use the funds for the acquisition, refinancing, debt consolidation, payroll, marketing, working capital, and more.
If you own a food court business, it could be difficult for you to get the funds you need through traditional lenders. However, there are some top loan products, if applied through an alternative lender, can be easily obtained.
Term Loans
A term loan could be the best funding option for aspiring entrepreneurs who want to open their restaurant in a mall. You can obtain $5,000 — $500K with repayment terms 5–10 years and interest rates 5%-15%.
Whether you want to acquire a rival business or buy a franchise, or you need cash for just working capital purposes, a term loan offers you a lump sum cash for a variety of business purposes. However, you need to have a good credit score, business history, and annual revenue to get approved for the loan.
Business Lines of Credit
A business line of credit provides mall food courts with a set credit limit to use when needed. It is one of the flexible small business funding options that allow you access as much as funds from the predetermined amount but only requires you to pay interest on the amount you used.
You can secure both secured and unsecured lines of credit for your food court business, though you have to provide collateral with the former. You can finance up to $500,000 with repayment terms up to 2 years and interest rates as low as 6%.
Working Capital Loans
Food court restaurants that are growing too fast may face various cash flow issues in their businesses. If you don’t have sufficient funds to hire employees, buy inventory, make payroll and pay bills, there are many working capital loans that can help you.
Invoice financing, merchant cash advance, business credit cards are some of the most sought-after working capital loans for food restaurants. Online alternative lenders may provide these loans for borrowers with spotty credit history. Even if you’re lacking collateral, you can still apply.
Equipment Financing
From cooking and storage to display and merchandising, equipment financing can help you purchase a variety of equipment for your food court shop. You can obtain an amount of 80%-90% of the equipment’ value with repayment terms 1–5 years and interest rate as low as 7%.
Since purchased equipment serves as collateral, you won’t need to provide any asset to secure the loan. If you default the loan, the lender can seize the equipment to recoup the losses.
Final Thoughts
When looking for a mall food outlet financing, it’s important to compare all your options based on interest rates, terms, and fees, which represent the true cost of the loan. Use an online lending marketplace to find and compare a variety of food court business loan offers from multiple lenders so you can choose one that will meet your current financial needs and budget.