Fast Food Shop Loan Service
Food is not the only thing that can be done quickly – we can quickly find the best
Fast food shop loan on the market!
Venturing into the fast food industry is a smart move for many businesses looking to expand their operations, especially during the cost of living crisis where cheap meals are more staple than ever.
Whether you plan on supplying fried chicken, burgers, kebabs or pizza, one thing ties them all together: the necessity for good financial management and access to market leading rates to stay ahead of the competition. That’s where FairLoans comes in…
By using our brokerage tool, we take the search for the best rates for your business onto our shoulders, giving you time to plan the things the matter.
Key Financial Considerations for Fast Food Shops
Startup Costs
Starting a fast food shop involves several initial investments:
- Equipment: Purchasing fryers, grills, refrigerators, and other kitchen appliances.
- Inventory: Stocking ingredients, beverages, and packaging materials for day one.
- Store Setup: Buying a location, furnishing the space, and installing necessary fixtures.
Running Costs
Ongoing expenses to keep your fast food shop operational:
- Staff Salaries: Wages for cooks, cashiers, and managers.
- Utilities: Monthly costs for utility bills such as water, electricity and gas.
- Supplies: Regular expenses for food ingredients, cleaning supplies, and packaging materials.
Revenue Streams
Fast food shops generate income through various means:
- In-house Food and Beverage Sales
- Delivery sales
- Catering Services for events and parties
Loan Repayment
Managing loan repayments effectively is vital for financial health:
- Repayment Terms: Understand the loan’s duration, interest rates, and payment schedule, for example any early/late payment fees.
- Financial Planning: Budget accordingly to ensure on-time repayments.
Awareness of Market Trends
- A familiarity of preferences and trends within the customer base is necessary to stay ahead of the competition.
- For example, there has been a rise in demand for healthier fast food options, so expanding the menu to accommodate this would be a key investment.
Delivery and digital sales
The rise of platforms such as Deliveroo or UberEats has changed the fast food industry, and it is imperative to keep up with the times, registering your establishment onto such platforms to expand your market reach.
Types of Loans Available
Equipment Financing: Helps purchase or upgrade essential fast food equipment, such as financing a new fryer or refrigeration unit.
Inventory Financing: Specifically designed to stock up on food ingredients and packaging supplies, to reduce long-term costs by capitalising on economies of scale.
Working Capital Loans: Provides immediate funds for covering daily operational expenses, such as meeting payroll requirements during slower business periods.
Merchant Cash Advances: Uses credit card sales to finance a lump sum, used to fund projects such as a marketing campaign or renovation.
Invoice and Payroll Loans: Combines funding for outstanding invoices and payroll, using pending customer payments to manage cash flow and other obligations such as employee wages.
Asset Finance: Enables the acquisition or leasing of major assets with costs spread over time, such as obtaining new furniture or décor for the fast food shop.
Leading Lenders for Fast Food Shop Loans
Commercial Banks
Commercial banks provide a wide array of loan products with competitive rates and well-established processes. The benefits of working with commercial banks include favourable interest rates, dependable customer service, and a variety of loan options. However, they typically have stricter eligibility criteria and longer approval times, which can be a disadvantage for some borrowers.
Private Lenders
Private lenders offer flexible and often quicker loan solutions, ideal for smaller or specialized financial needs. The advantages of choosing private lenders include faster approval times, adaptable loan terms, and less stringent qualification requirements. However, private lenders usually charge higher interest rates and may have higher fees compared to traditional banks.
Can I apply for a fast food shop loan?
Any business can apply for a fast food shop loan, regardless of how big or small it might be, provided you are VAT registered and you meet the minimum monthly turnover.
As a range of business funding options are available, it can often be challenging to find the perfect deal to acquire your fast food shop. Our specialist business loan advisory team helps take the strain in finding the right finance solution for your expansion into the fast food industry.
Call us today on 0117 313 8872, for a free initial consultation or use our business loan quote service.