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Business Loans for Fast Food and Take Away Businesses

Fast food and take away businesses are under constant pressure from new competition, changing customer expectations driven by delivery services and fluctuating costs as the ingredients they need change prices seasonally. So, while a business can be super busy, they may be facing increasing costs. The peaks and troughs can make it challenging to manage cash flow as the ongoing costs of establishing the business, rent or mortgages, salaries and utility bills keep coming even when other expenses go up or you hit a quiet patch.
And if a key piece of equipment breaks down, there are the unplanned repair costs or the need to replace a defective fridge, oven or other critical gear.
Managing your cashflow is not easy. It takes careful planning, setting aside funds for unforeseen situations and continual effort.
The first few weeks
Even if you take over an established business, you’ll have some initial costs to manage. You’ll likely need to set up accounts and point of sale systems, top up stock and update your signage and maybe even update the decor to really make the business your own.
Some of those investments might be modest but others can put a real dent in your early cashflow. You may find that a piece of equipment you rely on may not be quite as reliable as you need and it needs replacement or a major repair.
Depending on what you experience in those first few months, you might need to look at different finance options such as an unsecured loan where you may pay a slightly higher interest rate but not need to supply any collateral. Alternately, a secured loan may use an asset, such as a property you own or some object of value, but offer a lower interest rate and, potentially, a higher loan amount.
Both options can help you during the establishment phase of your business. Unsecured loans can be useful when you need to access a modest amount of cash for a specific, short term problem such as an urgent repair. For longer term investments, such as purchasing the freehold for your business or major equipment, a secured loan may be a better option.

 

Ups and downs
Depending on your location, seasonality can make cashflow management very difficult. When times are busy, the money may be coming in but you’ll likely have elevated expenses such as the need to boost your stock levels ahead of time, higher staffing costs and increased operational costs.
Getting ready for a busy period requires lots of preparation. As well as the increased operational costs, you’ll probably want to get critical equipment like your fridges, cooking appliances and even delivery vehicles serviced so they don’t let you down at a critical moment. Those extra expenses may require some working capital you don’t have in your accounts just yet. Even though you know your revenues and profits will be up, those funds may arrive too late for you.
And if you’re not ready, that peak period might not go as well you need. Running out of stock or suffering an equipment failure during a rush might put you behind the Eight Ball. And there are also your monthly or quarterly commitments to the tax office.

 

Building your business
In order to keep up with the competition, you may also need to invest in marketing in order to ensure your potential customers come to you. That will take some extra funds as well. Rather than emptying your cash reserves, a modest loan can help you with the funds you need to grow your business without draining your bank accounts.
And, as well as making the busy times busier, an effective marketing investment will reap rewards during the times that are usually quieter.
Traditional lenders, like the big banks, make it challenging for many business operators to access finds quickly. But unlike the big banks Capify makes the applications process easy and can have the funds in your account before you’re under lots of stress while the banks can have you waiting for weeks by the time their complex forms are processed.
Loans from Capify can help you manage anything from daily fluctuations in sales, to BAS payments and major capital expenditures. Approvals can be turned around in just a day with cleared funds ready for use quickly.

You can call Capify on 1300 760 930 for assistance.

Apply anytime, anywhere

  • No application fee
  • No obligation
  • See how much you qualify for

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