The Basics of Bakery Business Loans
When a business sells products in which you can make in a huge quantity, then a large business chain can outperform a small business. However, in today’s Internet-driven marketplace you can do quite well opening a smaller scale cupcake shop or a full-service bakery.
So how can you apply for small business loans for bakery needs?
There are some basic requirements that all lenders will have – whether you use the Amansad Financial lending network or not. You should have been open for business at least 12 months in most cases in Canada or the United States.
Why do you need to have been open for at least a year to apply for a business loan for a bakery?
To be frank, lenders want to see that you have already put together some success before they will extend you that sort of credit, particularly without any collateral. When you have been open for at least a year, that tells the lender that you have not only put together a solid business plan, but you’ve had some success putting that plan into action. So many people put together business plans and then see those plans go up in smoke, because they don’t have the business sense to put matters into practice. If lenders gave unsecured business loans for bakery type businesses right at their opening, they would see a lot more of those notes go into default, simply because so many businesses go under that quickly. It might be a function of poor location, or a mistake identifying the degree of market saturation, or it might even be an illness that causes the owner to stop running the business. When you have 12 months of operation under your belt, even if the first few months were choppy and unprofitable, a lender will see that you have been able to right your own ship and that the loan is not simply good money going after bad.
Merchant Loan for Bakery Equipment
If you take out small business loans for a bakery, you can use it for just about anything that will benefit your operation. So, if you want to buy new bakery equipment, if you want to buy a new computer system to manage your inventory, if you want to buy a property and use it as your location, you can do all those things.
If you look at some websites to read about small business loans for a bakery, you might read about a product called the merchant cash advance (MCA). These advances are usually available very quickly, which can come in handy if you are looking for quick money that can quickly benefit your business, and don’t want to jump through the hoops that some funders require you to jump through. Ideally, it’s suggested you explore your traditional options with your bank first. If your bank is unable to assist, get in touch with us for fast funding.
How to Get Funded Fast through Best Bridge Capital
Below is a short list of general items required with a completed application to secure you the right MCA for your business:
- Copy government issued ID for all principal owners
- Business Articles of Incorporation
- Business License
- 3 to 6-month Merchant Statement History
- A void cheque with your company name
- Copy of Business Property Lease (if you rent) OR Most Recent Mortgage Statement & Copy of Land Title/Deed (if you own the property)
Note: Business Financials and Profit Loss Statements are required for advances over $75,000.