Whether you’re hoping to add a new wing to your restaurant so you can serve more customers at once, you want to take on more employees so your dining establishment can be open more hours, or you’re thinking about opening your second (or third) location, forward-thinking is a great characteristic for a restaurant owner or manager to have. However, if you wait for a huge influx of revenue before you make any expansions, you may never see these ideas come to fruition. There’s no one perfect time for expansion – it’s all about how driven you are.
When You Have Vision
Apply for a line of credit at Business Credit & Capital whenever you have an actionable expansion plan. The plan is absolutely not a criteria for getting approved for credit – in fact, it’s best to get that line of credit now, even before you know how you’re going to use the money, because you can actually use it for other expenses that may come up along the way and you don’t have to pay interest on the money until you withdraw it. However, the fastest way to see your expansion happen is to have a plan ready, secure the financing, and act on it.
When You Have Minimal Stability
To qualify for a line of credit, your restaurant need only have been opened for one month and you need to have six or more months left on your lease. In addition to not having a bankruptcy on your record, you need to prove you take in at minimum $3000 a month in credit card sales. For even a small restaurant, this isn’t much. If you can count on a regular clientele’s patronage to pay expenses, you can get the credit you need to put cash into an expansion.
When You Have Competition
If a local restaurant is taking away your customers, you need something more to offer to tempt customers back. An expansion could prove just the trick. Even an expanded menu is a great start, even if it means you have to order more supplies to experiment with new offerings. Get the money you need to pay for your expansion with a line of credit.
You have to spend money to make money, and if you want to make money before you feel comfortable spending it, you’re never actually going to make enough. A business line of credit is exactly what your restaurant needs to make your visions of expansion a reality. Qualifying for a line of credit is easier than you might expect, and a line of credit is much more affordable and easier to manage than a business loan.