A Guide to Bar Business Loans
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Are Bar Business Loans?
How Do Bar Business Loans Work?
Times When a Business Loan for a Bar Can Be a Good Idea
Buying an existing bar Opening a bar Opening a second (or additional) location Renovating a bar Rebranding your bar Purchasing bar equipment Covering operational costs Getting consulting services
Top Funding Options
SBA Loans
Equipment Financing
Peer-to-Peer Lending
Business Acquisition Loan
Business Line of Credit
Merchant Cash Advances
Getting a Business Loan
What Type of Loan Do You Want?
Are you comfortable securing the loan with either personal or professional assets? A secured loan will likely have a lower interest rate than an unsecured loan, but you could lose any collateralized assets in the event you default on the loan. What kind of payment structure do you need? Do you want a standard monthly payment, or would daily or weekly payments work better for you? Also, do you want the repayment period to be as long as possible? Do you need the absolute lowest interest rate possible? Or, is a loan with a fast turnaround and a high interest rate acceptable? Generally speaking, the lower the interest rate, the longer it takes for the lender to process your application. Are you OK waiting several months or did you need the loan yesterday?
How Big a Bar Business Loan Do You Need?
Gather Necessary Documents
Personal and business bank statements Personal and business tax returns Resume (for you and any other owners) Business license and registration Balance sheets Profit and loss statements Information on other loans Proof of collateral Business plan A clear explanation of how you’d use the loan
Comparing Lenders and Rates
Interest rates Fees Repayment terms
Applying for a Loan
Business Grants for Bars
Comparing Business Loan Rates
Frequently Asked Questions
About the Author
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