The restaurant business is exciting, demanding, and, when it comes to financing, challenging. Few Lenders have the tolerance for the risk associated with this business category.
Busy restaurant owners, strangled for time with the myriad of activities necessary to build their businesses, can’t always find the time to seek out the best and the right financing solutions for working capital.
When a Restaurant owner finds they need capital, the lack of time, fear of rejection from traditional lenders, and unreasonable assumptions about their financial statements are combined and ultimately confuse the decision-making process. As a result, these business owners too often accept less than ideal financing solutions. If the solutions is a business loan, it may feature onerous credit terms. Or, forced into bad decision-making, they may take on new “equity partners” who invest capital and later decide they want a voice in how to run the restaurant.
We wrote a blog about when restaurant owners decide to bring in investors in our blog:
DON’T TELL ME HOW TO MAKE MY PIZZA!
We meet frustrated restaurant owners all the time in our travels. As Brokers at Aurora Consulting, our single mission is to search for financing solutions for our clients. We can slow down the decision-making by providing cogent information about business loan options. And we have access to Lenders who can provide business loans in a timely manner and with very reasonable credit terms.
We may employ our strategy of “cobbling-together” the financing in the short-term with a view towards creating a long-term financing solution. Because we work for the client, not for the Bank, we can explore multiple options at once to arrive at a satisfactory solution for your needs.
For example, in a traditional lending scenario, a Restaurant needs working capital for a new marketing plan, new restaurant fixtures, funding capital reserves for payroll for seasonal downturns, and new equipment for the kitchen. Traditionally, the Restaurant owner applies to the Bank for a single loan to fund these different needs.
At Aurora Consulting, we begin by reviewing the business’ qualifications for the traditional business loan. If there are challenges that prevent the Restaurant from qualifying, we’ll assemble different components to meet different aspects of the financing needs.
We’ll locate a Lender who specializes in equipment financing. That satisfies the need for the kitchen equipment. Next we’ll look for a single loan in an amount that fits the qualifications of the Restaurant’s financial statements. Then, we may bring in a Lender to provide a Line of Credit so the Restaurant can tap into in the event of a seasonal downturn to fund payroll.
One of our objectives is to help Restaurant owners preserve capital. In the event your business is flush with cash reserves, we can find a business loan at reasonable terms to fund your equipment, working capital or marketing expense needs. In this way, you preserve your precious cash savings.
You can reach us by emailing Solutions@AuroraConsulting.biz. Or call us at 860-795-3808.