If you find yourself in a bit of a financial rut, for whatever reason, then you may be stuck with where to turn. Of course, the explosion of payday loans a few years ago with the global economic crash meant that a lot of people actually ended up in more debt than they started with.
The hidden fees, high interest and extraordinary APR rates meant that people very easily got themselves into more financial difficulty than they anticipated. So, since there are so many seemingly “good” financial aids out there on the internet, how do you choose which company to trust?
This is where services such as comparison websites can help. For example, if you get help fro Seek Capital then they do all of the hard work for you. They clearly explain everything you need to know about a particular company, covering everything from deposits to interest rates and the terms and conditions.
Where do I turn for a startup loan?
If you are looking to fund your fantastic new business idea then you can easily become overwhelmed. Depending on the type of business that you want to open you will have different options, as you will require different amounts of capital over various timescales. Here we will explore financial companies to turn to for help opening a new restaurant.
Initial funding for a restaurant
If you are just getting started with your new restaurant business then you are going to need capital for the initial funding. In fact, this can be one of the easiest steps in your business plan as Seek Capital actually recommends borrowing this sum of money from your family and/or friends.
Depending on how generous they are feeling you can borrow as much, or as little, as they are willing to lend you. If they are very kind people then they may lend you the money free of charge. This can then save you money in the long run as you will not need to pay back any extra in the form of interest or fees.
Once you have the business set up you are going to need to invest in good equipment. In order to do this, a good option is a collateralized loan. You can typically borrow anything up to $500,000+ with rates in the region of 6-9%. You will, however, usually have to pay a few fees.
Restaurant expansion loan
If your business has taken off and you are looking to expand then Seek Capital recommends that you consider a traditional-style loan from SBA.
Here you can borrow anything up to $5,000,000+ and set the terms to the life of the project. Usually, the APR will be 5.99-29.99% (depending on the terms and conditions of the loan) and the fees will include charges such as organization and packaging fees.
To sum up
Although starting a new restaurant business can seem like a scary ordeal there are financial companies out there who can help. By turning to a service provider such as Seek Capital you can ensure that you are agreeing to the right loan for you.