3 Things To Do Before Seeking A Business Renovation Loan For Your Restaurant
You have a restaurant that serves awesome food and gets a decent amount of customers, but there are things about the building and location that really need an upgrade. The average restaurant will have to renovate their building at some point during operation if they are open for very long, and seeking a renovation loan to do so is a typical solution. Here are three things to do before seeking a renovation loan for your restaurant.
Get estimates for the renovation from more than one company.
Before you schedule a consultation with a lender to see if you can qualify for funding for renovating your restaurant, it is best if you have gotten cost estimates from at least a few different contractors or renovation companies. You may have an idea of how much money you will need to get everything done, but this will not look as good on paper as a professional price quote from someone who specializes in renovating restaurants. The estimate should be really detailed as well, which means it should include price breakdowns of the materials that will be used, how much you will be charged for labor, and how long the project will take.
Document how the renovation will benefit your restaurant.
What is it that you wish to achieve with the planned renovation? Are you giving the restaurant a facelift so it has a more modern atmosphere to match a more modern menu? Do you feel the outdated ambiance is turning customers off? Before you seek a business renovation loan, make sure you have documented what you wish to achieve with the changes. The more clear your goals are with the renovation, the more the lender will be able to see there is a logical reason for you to get funding to renovate.
Make sure your restaurant is in a stable financial place.
Lenders are leery about handing out money to business owners who are having problems staying afloat and not bringing in a stable flow of profits. Even though you may want the renovation because it will improve financial stability, it is best if you are in a semi-stable financial spot before seeking a loan. Work with an accountant to keep tabs on expenses and profits for a few months and get your finances in line so they at least look more stable on paper before you seek a loan. This will better your chances fo getting approved.
For more information on business renovation loans, consult a resource in your area.