How Revolving Credit Lines Prepare Restaurants for the Unexpected
Restaurant owners specifically carry the responsibility of having to be constantly financially prepared for any challenge or opportunity that arises-the good and the bad.
In these times of small business growth, restaurant businesses are able to acquire revolving business lines of credit once again, equipping them with the capital they need to immediately resolve any issue, and accomplishing any business goal.
In this article, we’ll explore the 6 most common reasons why restaurants are applying for revolving lines of credit more than any other financing option. Read through to learn how they can help your business prepare for the unexpected too!
Top 6 Ways Restaurants Use Revolving Credit Lines to Prepare for Unexpected Expenses
- Seasonal Fluctuations: Every food and beverage business faces ups and downs in sales with the changing seasons. With a revolving credit line, business owners can rest assured that they’re financially prepared to smooth out any dips in sales, allowing them to take on challenges and opportunities that they wouldn’t otherwise be able to. Revolving credit lines in particular are great for this use, as you can choose to not use them in seasons where you face peaks in sales, without any worry of fees or other penalties.
- Building Your Credit Just by Using it: Every time restaurant owners use a revolving line of credit, you’re also preparing your business for an even brighter future. Every time you use your revolving line of credit, you’re effectively boosting your FICO score, putting you in an even better financial position than when you started!
- Replacing, Upgrading or Purchasing New Equipment: For restaurants, the ability to update or replace broken equipment immediately could mean the difference between taking advantage of a rush, and staring down a long stretch of time with limited to no income. When it comes to replacing, upgrading or purchasing new kitchen and restaurant equipment, along with seating and other amenities, business lines of credit often prove to be much more effective over business loans. With immediate access to cash, business owners can replace, upgrade, lease or purchase new equipment exactly when they need it-without having to pay out of pocket.
- Purchasing Inventory: Restaurants love using revolving credit lines to prepare their business by stocking up on materials and supplies-especially regarding bulk purchases. With a revolving business line of credit, you only have to pay for what you use. This means that you can draw exactly what you need from your credit line for these purchases, without having to worry about overspending on inventory you wouldn’t use, as you might with some types of business loans.
- Covering Overhead Expenses: Whether you could benefit from covering administrative costs, marketing expenses, or paying the rent for your building, revolving credit lines are the perfect option for covering the exact amounts you’d like to pay off, instead of paying out of pocket. Take out the capital you need, and replace it if you’d like to borrow again-or don’t! The choice is yours.
- Financing Operating Costs: When it comes to keeping a restaurant running smoothly, having access to funds to help manage payroll, paying benefits, and other labor costs become a breeze with a revolving line of credit. These are often expenses that can be covered quickly and inexpensively when sales are low, then quickly recovered when sales start picking up!
How to Get a Restaurant Line of Credit: 5 Steps
- Make $120K or More in Annual Gross Sales
- Be in Business for at Least 3 Months
- No Minimum Credit Score is Required if Both of the Above 2 Qualifications are Met!
- Call National at (877) 482-3008, or Fill Out Our 1-Minute Application Online
- Get Your Revolving Restaurant Credit Line as Soon as 24 Hours!
Get the Freedom Your Restaurant Needs to Grow
The economy hasn’t been this conducive to small business growth in many years. Restaurants in particular are facing a period of unprecedented growth, with more and more plans for expansion being reported from food and beverage businesses nationwide.
True revolving business lines of credit are playing a huge part in making these growth dreams come true.
They weren’t able to be offered for many years, but now that the economy is better than ever, National is able to offer TRUE revolving lines of credit that can be hugely beneficial to business owners seeking a continuous source of capital to use over many years.
So, what are you waiting for? Give us a call or fill out our application today, and get funded tomorrow!