Almost every type of business has taken a hit as a result of the Covid-19 pandemic, and pizza shops are no exception. Many business owners have been pulling their hair out, trying to find solutions to difficult problems.
Luckily, the solution for many businesses is as simple as getting access to some extra cash flow to get through hard times. If you’ve ever wondered how to get funding for a restaurant, look no further. We’ll cover everything you need to know to figure out a business loan for a pizza shop. From equipment financing to capital injections, you have many options for keeping your pizza shop going until business picks up again.
Best Funding Options For Pizzerias
There are many options for getting the restaurant capital funding that you need to solve your business challenges.
Here’s a list of some of the most common business loan for pizza shop options:
- Working capital loans
- Lines of credit
- Small Business Administration Loans for Restaurants
- Financing for inventory
- Financing for equipment
In this article, we don’t have the space to go into the details of each, but make sure you research them all to see what you’ll qualify for.
Recently, a new funding stream for restaurants with cashflow problems has opened up, namely, the $28.6B COVID-19 Grant Program for Restaurants that are part of the US government’s coronavirus response bill.
Getting a Slice of the $28.6B COVID-19 Grant Program
Many restaurateurs breathed a sigh of relief when $28.6 Billion dollars of emergency relief was made available to struggling restaurants earlier this year. The government has made an acknowledgment that most restaurants will return to profitability once paying customers to walk through the doors again.
The government intends for the free federal grants to help replace losses to revenue that business owners have faced since the beginning of the pandemic.
In order to access the grants, you need to be able to prove that your business has experienced “Pandemic-Related Revenue Loss.” The government will decide whether your business fits the bill by comparing receipts from before the pandemic to those you’ve gathered while it’s been ongoing.
There are a number of restrictions that limit which businesses can apply for the COVID-19 Grant Program. If you own more than twenty restaurant locations (regardless of whether they are part of the same franchise with the same name), you won’t qualify for government assistance.
You’re also out of luck if you’ve already applied for the Shuttered Venue Operators Grant program. The two programs can’t be applied concurrently.
Finally, your restaurant needs to be registered as a small business rather than a publicly traded company or a not-for-profit organization.
Pizzeria Business Loan Qualifications & Challenges
If you don’t qualify for government assistance or think you’ll need access to additional cash, you can still go down the route of traditional small business loans for your restaurant.
There isn’t a best bank for restaurant loans, which you should choose depends on the size and nature of your business. In this section, we’ll go over how to qualify for a restaurant loan and our 4 tips to qualify for a restaurant loan.
First, we need to go over exactly what exactly small business loans for restaurants (or an SBA loan for restaurants) are. Owners will get small business loans for a restaurant by going into a brick-and-mortar bank and filling out a loan application. Unfortunately, it’s often quite difficult to get small business loans for restaurants. Covid hasn’t made it any easier.
To maximize your chances of getting a loan, following these four tips is essential:
- Have a complete history of your finances prepared and on hand when making the application. Being able to answer any question that’s thrown at you will make your loan application more credible and likely to be approved.
- Do everything you can to get your credit score up as high as possible before making your application. This won’t only affect how likely you are to be approved but also the interest rates you’ll be paying if you do get a loan.
- Having a fully developed business plan is important. It can show your potential lender that you’re serious about making improvements and are likely to pay them back.
- Do your research before applying for any loans, making sure your business is appropriate for the loan structure, and your credit is good enough to qualify.
If you’d like more information on restaurant SBA loans, check out our dedicated article at the link.
How To Get Funding For Your Pizza Shop
Although getting quick restaurant funding can be challenging, there are some tricks you can use to jump the line.
It’s worth looking into restaurant financing companies, which are experienced in providing loans in the risky space of the restaurant industry. However, be sure to check out the loan terms to make sure you aren’t being taken advantage of. Some loan companies primarily exist to work with desperate restaurant owners, and you don’t want to get into business with them.
Simple Application For Quick Restaurant Funding
In this section, we’ll go over one of the simplest pizzeria business loans that will get cash into your account ASAP. With ROK Financial, you have options for getting a term loan, line of credit, or SBA loan. Even better, the application is quick, easy, and able to be completed over the internet.
ROK Financial, like the American government and traditional banks, recognizes that the hard times for restaurant owners are coming to an end. As the vaccine rollout continues and more and more people feel safe and confident going out to eat, the industry will recover. That makes every penny they loan out a good investment for them and a potential lifeline for you.
If you make the right financial decisions, you’ll be out of the dark times along with the rest of the country. Just don’t delay and take advantage of the wealth of ways to get a business loan for a pizza shop.
About the Author, Madison Taylor
Madison Taylor is the Brand Ambassador at ROK Financial. She is responsible for raising brand awareness and business relationships with business owners across the country. Madison loves that she plays a small role in getting Business Back To Business Through Simple Business Financing and looks forward to hearing what you think about the blogs she creates!Madison has been working in the financial space for six years, and loves it! When she is not at work, you will find her at home learning a new recipe to test out on her family or going on new adventures with her friends.