For Chinese restaurants, traditional bank loans are usually the first place to go for financing for anyone looking for lowest fees possible, refinance, lower interest rates and the longest loan terms. These loans are good for Chinese restaurant purchases or refinance and even for those restaurant owners seeking to purchase additional equipment or consolidate existing debt. Some seek these loans for more working capital as well.
|Rates||5-15% for 12 months|
|The Terms||1-30 years|
The Line of Credit Bank Type
Traditional bank lines of credit is a lower rate type of financing which is pre-approved which enables a restaurant owner specializing in Chinese restaurant foods to gain access to funds every time they require it to cover functions within their restaurant. Through a traditional banks business line of credit, you will not be required to to get financing each and every time you want to receive access to funds, alternatively you’ll gain access to the funds as required, once you require it, without the need of looking for additional authorization through your community bank.
Rates6-15%The Terms1-2 years Financing Amounts $10,000-$500,000 Collateral Needed Fees Medium costs
An Unsecured Business Line of Credit
An unsecured line of credit for restaurants that specialize in Chinese food generally will come in as credit cards for the business. For approval, with the business credit card or business line of credit, you will be required to have a good credit rating somewhere around (680 or higher). Your personal credit cards, need to be maintained and not maxed-out to the limit. If your credit is good, then this may be a great option for receiving restaurant working capital.
|Rates||0% for 12 months|
|The Terms||1-2 years|
|Collateral||Not be Required|
Chinese Restaurant Loans through the SBA
SBA Chinese restaurant loans are a different type of funding option which will come in through a business line of credit or a term loan with a traditional bank, a community lender or a credit union. An SBA loan is not offered through the SBA on its own, as an alternative these loans are given through the traditional lending provider and the Federal gov’t option, would repay a sizable part of the lender’s loss if for some reason the Chinese food restaurant neglects to pay back the loan.
|Rates||5-8% for 12 months|
|The Terms||3-25 years|
The Chinese Food Restaurant Equipment Leasing
You can find various options for a Chinese restaurant to acquire restaurant equipment financing. Although a lot of Chinese restaurant owners would probably like to pay for the restaurant equipment from their own personal funds, or get an equipment loan, one other option is to rent out your Chinese restaurant equipment. Equipment leasing enables the restaurant owners to acquire equipment fast and never have to repay the entire equipment cost in advance. Once the period of leasing has ended, the owner of the restaurant has a choice to either increase the length of the loans term, or give the equipment back to the leasing company.
|Rates||8-20% for 12 months|
|The Terms||1-10 years|
Alternate Chinese Restaurant Loans
Non-bank alternate business loans are a means for Chinese food restaurants which may have been struggling to obtain an approval from the bank or receiving financing that is affordable. Also, most alternative business loans call for significantly less paperwork than SBA loans or from traditional banks and can finance in a small percentage of that time-frame often financing inside of one week or sooner.
Rates 8-25% The Terms 1-5 years Financing Amounts $10,000-$500,000 Collateral Not needed, Fees Medium costs
The ACH Cash Advance
Cash advances consist of Chinese restaurants future earnings and gross sales in order to get and advance or funding in lump-sum. This will involve sales from the Chinese restaurant’s future receivables, so it is theoretically not really a business loan, but a business-to-business purchase transaction. Once the financing is accomplished, the restaurant would start paying back the loan through an arranged agreed to amount transfered through the restaurant owners business account over to the financing services daily via Automated Clearing House.
|Rates||1.10-1.50% for 12 months|
|The Terms||3-24 months|
|Lower fees||Higher costs|
Merchant Cash Advance Split
A split with regards to a merchant cash advance is just about the same as with an ACH cash advance since they both depend on the Chinese restaurant’s future receivable sales. The primary distinction are with how the financing business repayments are created among these kinds of restaurant cash advances. Once we brought up ACH, the repayment is completed through a specific amount of ACH sent transferred over to the lender daily. So through a Chinese restaurant split MCA financing arrangement, a restaurant will repay through dividing some of the merchant credit card transactions together with the lender.
|Rates||1.10-1.50% for 12 months|
|The Terms||3-18 months|