Understanding Equipment Financing for Restaurants.
Expanding an established restaurant is an exciting venture, and securing the right funding is crucial to support your growth. Financing equipment can be a cost-effective way to upgrade and expand your kitchen without the hefty upfront costs. Here’s a guide to help you navigate the process of financing equipment for your restaurant expansion.
Definition: Equipment financing is a form of business loan for restaurants, food service and hospitality industry, where you acquire equipment for a specific term rather than purchasing it outright using working capital. At the end of the lease, you may have the option to buy the equipment, renew the lease, or return the equipment.
Benefits of Financing Restaurant Equipment
v Lower Initial Costs: Leasing reduces the need for large upfront capital outlays.
v Cash Flow Management: Helps maintain cash flow by spreading costs over time.
v Access to Up-to-Date Equipment: Allows you to upgrade to the latest equipment more frequently.
v Tax Advantages: Lease payments may be tax-deductible as operational expenses.
Types of Equipment to Finance
Consider financing the following essential restaurant equipment:
v Kitchen Appliances: Ovens, stoves, refrigerators, freezers, microwaves, and dishwashers.
v Cooking Equipment: Grills, fryers, mixers, and food processors.
v Preparation and Storage: Worktables, shelving units, and prep stations.
v Dining Area Equipment: Tables, chairs, bar stools, and lighting.
v POS Systems: Point of Sale systems for order taking and payment processing.
v Building Signage: Typically, most business don’t realize they can finance building sign.
Comparing Business Loans vs. Equipment Financing for Restaurants
Features | Business Term Loans | Equipment Leasing | Equipment Financing |
Ownership Requirements | 50% | 100% | 100% |
Initial Costs | $0 (orig fees) | Low to moderate | Varies |
Monthly Payments | Monthly, Daily, Weekly | Monthly | Monthly |
Credit Minimum: | 550 | 600 | 650 |
Fund Disbursements | Client | Vendor | Vendor |
New/Used Equipment | n/a | Yes | Yes |
Maximum Term | 24 months | 60 months | 60 months |
Time in Business | 3+ years | Startup OK | Startup Ok |
Interest Rates | Moderate | Low | Low |
Application Only | $150K | $250K | S250K |
Funding Time | Same Day Funding | 1-3 days | 1- 5 days |
Why Choose Liberty Capital Group, Inc. for Kitchen Equipment Financing
Our financing options offer the flexibility you need to manage your cash flow effectively while investing in the equipment necessary to grow your business. With longer loan terms of up to 60 months, we can help you reduce your monthly payments and make owning a high-ticket item like a roll-off truck more manageable.
Compared to traditional lenders, we offer several advantages:
- Corp-Only Available: We cater to businesses of all sizes, including corporations.
- Up to 120% Equipment Cost: Our financing solutions can cover not only the equipment cost but also soft costs associated with acquisition.
- Fast Approval Process: With our simple one-page application, you can get Funding Approval as quickly as the next day.
- No Down Payment Required: Qualified borrowers may access financing without the need for a down payment.
- Lowest Rates: We offer competitive rates for qualified borrowers, ensuring you get the best financing terms available.
- No Pre-Payment Penalties: Enjoy the flexibility of paying off your loan early without any penalties.
Credit Requirements for Kitchen Equipment Financing:
For startup waste management companies, we require:
- Business license or active business entity registration.
- Personal guarantees from all owners.
- Minimum 625 credit score.
- No bankruptcies in the last 7 years.
- No unresolved tax liens.
Financing Options:
We offer various financing options tailored to your needs:
- Equipment Financing: Spread the cost of your kitchen equipment over time with fixed payment terms.
- Equipment Leasing: Lease kitchen equipment with off-balance sheet financing options like Fair Market Value (FMV) leases.
Additional Financing Benefits:
- $99 for the First 6 Months: Get started with minimal upfront costs.
- 90-Day Deferred Payments: Pay nothing for the first three months.
- Working Capital Loans: Access short-term cash flow solutions for immediate needs.
Restaurant leasing equipment can be a strategic move for new restaurant owners, providing flexibility and preserving working capital. By understanding the equipment leasing process and carefully selecting your equipment and leasing partner, you can set your restaurant up for success. A food truck finance, can be financing options for restaurant owners who wants to have a flexibility to expand without having to start open a new location and put up a lot capital to just open a second location.
Bank Hopping for Equipment Loans: Why It’s Time-Consuming and How Liberty Capital Can Help.
Searching for the right equipment lender especially if you’ve already been turned down by your bank, by hopping from one bank to another just trying to figure out whether they will approval you can be a time-consuming and frustrating process, especially if you have challenging credit. Each application involves time-consuming paperwork and potential rejections. If you get turned down, how many more lenders will you apply to before seeking better options from a loan broker?
Working with an equipment loan broker like Liberty Capital can streamline the process, saving you both time and money. Brokers have access to multiple lenders that can structure any credit profile specific to you, even if your credit is less than perfect. With their expertise and network, brokers can navigate the complexities of loan applications and increase your chances of approval. You may not know all the intricacies of equipment financing thus a loan broker will be able to help you navigate.
So why go through the hassle of bank hopping when Liberty Capital can do the work for you, ensuring you get the best possible deal?
What do I need to apply?
1. ONLINE APPLICATION: You can fill out our application, upload and authorized us to process. We do soft-inquiry, and our lender will do hard inquiries once you are approved.
2. Equipment Invoice or Quote for the truck or equipment you want to buy. Multiple vendors accepted. We’ll lump them into one monthly payment for you.
3. Banks statements (3-4 months) – Proof income, proof of banking, and proof funds availability in case down payment is needed and to match for ACH Payment Drafting – as an auto pay.
Equipment financing is vital for businesses that need expensive equipment to operate efficiently. Companies in construction, manufacturing, healthcare, and other heavy equipment-intensive industries benefit significantly from these financial solutions. Understanding the options and working with top financing companies can help businesses acquire necessary equipment while managing cash flow effectively.
Kitchen Financing Application Only up to $250,000
One of the utmost necessities for a restaurant management companies are the two essential equipment – front-end equipment and back-end equipment. It’s imperative to ensure that operational equipment, which serves as an asset for the company, is well-maintained and kept current. Equipment loans or leasing are viable routes for expanding any restaurants. Leasing, in particular, offers numerous advantages, though they won’t be explored here today. One notable benefit of equipment leasing is the accompanying tax advantages, cashflow saving, and inflation buster.
Easier to get than a traditional business loan
Less paperwork
Fast processing time
Less stringent requirements for qualifying
No collateral needed, the equipment is the collateral
May require less credit score for you and your business as well
Guide to Kitchen Equipment Financing
When it comes to kitchen equipment financing, Liberty Capital Group, Inc. offers several advantages over traditional lenders:
- Corp-Only Availability: We cater exclusively to corporations, providing tailored financing solutions for businesses.
- Up to 120% Equipment Cost Coverage: Our financing options can cover not only the equipment cost but also associated soft costs.
- Flexible Funding Amounts:Access financing ranging from $250,000 with a simple one-page application to $5,000,000 with financial statements.
- Quick Approval Process: Benefit from next-day funding approval, ensuring minimal downtime for your operations.
- Approved Equipment Vendors:We work with approved packaging equipment vendors, streamlining the acquisition process for our clients.
- Lowest Industry Rates: Enjoy competitive rates for qualified borrowers, reducing the overall cost of financing.
- Eligibility for New and Used Equipment Financing: Whether you’re purchasing new or used equipment, we’ve got you covered.
- Minimal Impact on Personal Credit: Our financing solutions do not appear on personal credit reports, preserving your personal credit history.
- No Pre-Payment Penalties: Enjoy the flexibility of paying off your loan early without incurring penalties.
Kitchen Equipment Financing Programs
At Liberty Capital Group, Inc., we offer aggressive financing programs designed to meet the diverse needs of our clients. Our solutions typically involve two primary options:
– Equipment Financing: Spread the cost of your kitchen equipment over time with fixed payment terms.
– Equipment Leasing: Opt for off-balance sheet financing with Fair Market Value (FMV) leases, providing flexibility at the end of the lease term.
Additional Financing Benefits Our financing options include:
– $99 for the First 6 Months: Start with minimal upfront costs.
– 90-Day Deferred Payments: Pay nothing for the first three months.
– Working Capital Loans: Access short-term cash flow solutions for immediate needs.
– Fast Approvals: Apply online for funding up to $250,000 with a Streamlined Process.
Choosing the Right Finance Company for your Restaurant
Research: Look for reputable leasing companies with experience in the restaurant industry. Read reviews and ask for recommendations from other restaurant owners.
Compare Terms: Examine the terms and conditions of multiple leasing companies. Pay attention to:
v Lease Term duration between 3 to 5 years.
v Monthly payments with very little upfront capital outlay
v Interest rates ranges based on personal credit whether or established restaurants.
v End-of-lease options- lease to own
Our small business financing experts are available to guide you through the funding Process.
Despite technological advancements, loans, especially in restaurant kitchen equipment financing, predominantly involve personal interaction with an underwriter to ensure as fraud prevention. Automation may not suffice, particularly when dealing with a third party like the vendor and the complexities of equipment purchase. In such scenarios, business owners are often better served by collaborating with a Business Loans Broker like Liberty Capital Group, Inc., who can steer them in the right direction.
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