CapitalSpring

Securing funding for a restaurant can be particularly challenging, especially when traditional bank loans — which offer favorable repayment terms — are difficult to obtain due to the perceived high risk associated with the industry.&nbsp;As&nbsp;<a href="https://www.barandrestaurant.com/operations/when-does-alternative-funding-make-sense-restaurant?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurant-alternative-funding-when-does-it-make-sense-2727145" target="_blank" rel="nofollow">reported by Bar &amp; Restaurant News</a>, restaurateurs who find bank loans unsuitable have&nbsp;<a href="https://1851franchise.com/navigating-the-world-of-franchise-financing-2726399#stories">alternative financing options available</a>, such as term loans,&nbsp;<a href="https://1851franchise.com/sba-franchise-loans-what-they-are-and-how-to-get-one-2724719">Small Business Administration loans</a>, online lenders, merchant cash advances, private equity lending, peer-to-peer investors and crowdfunding. These alternatives often provide more flexible terms, such as “amortization light” structures that reduce cash flow burdens and “pay-in-kind” interest features, which allow restaurants to defer interest payments until they are more financially stable.However, the convenience and flexibility of alternative funding usually come with higher interest rates, making it more appropriate for larger restaurant groups that need significant capital for acquisitions or partner buyouts. Smaller or single-location restaurants might benefit more from local community banks, which offer lower rates and personalized guidance. While&nbsp;<a href="https://1851franchise.com/why-franchising-and-private-equity-make-such-a-good-match-2720921#stories">private equity firms</a> and direct lending can bypass some bureaucratic processes, they require restaurateurs to share ownership and profits, which may not align with every business owner’s goals. Those who wish to maintain full control over their business might prefer traditional bank loans or explore online lenders and lines of credit instead.Read the original article&nbsp;<a href="https://www.barandrestaurant.com/operations/when-does-alternative-funding-make-sense-restaurant?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurant-alternative-funding-when-does-it-make-sense-2727145" target="_blank" rel="nofollow">here</a>.ABOUT CAPITALSPRING:CapitalSpring is a leading institutional investor with deep expertise in foodservice, multi-location business models and related industries. For over 17 years, we have supported proven management teams with financial, strategic, and operational resources to accelerate growth and to realize the full potential of their businesses. CapitalSpring offers one-stop solutions for a broad range of investments including private equity, mezzanine capital and senior lending and has offices in Nashville, Los Angeles, Atlanta, and New York. For more information about CapitalSpring, please visit&nbsp;<a href="https://www.capitalspring.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurant-alternative-funding-when-does-it-make-sense-2727145" target="_blank" rel="nofollow">www.capitalspring.com</a>.

Restaurant Alternative Funding - When Does It Make Sense? - Bar & Restaurant News - 1851 Franchise

Restaurant Alternative Funding: Flexible Options for Growing Restaurant Groups

1851 Franchise

Alternative funding offers flexible options like term loans and private equity, but often comes with higher interest rates, making it better suited for larger restaurant groups.

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Bar & Restaurant News: When Does Alternative Funding Make Sense for a Restaurant?

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Bar & Restaurant News: When Does Alternative Funding Make Sense for a Restaurant?

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