Coffee shop capital operation and equipment renting coffee shop entrepreneurial knowledge

If you are preparing to open a coffee shop, when there is not enough money, you need to look for some outside help. Today we explore how to get bank loans and equipment rental more effectively and quickly.

Get a loan

Running a coffee shop is seen as a risky move. Many banks do not provide loans to newly opened cafes and generally require cafe owners to make personally guaranteed loans. In other words, no matter whether the operation of the cafe is good or bad, the owner is personally responsible for repaying the loan. Here are some ways to make the bank think you are worthy of a loan.

Communicate with the bank

Most newly opened cafes find it difficult to get bank loans without real estate mortgages. Even if you have a good reputation and working relationship with the bank, most banks will strictly follow the numbers and review your trading history.

If you can prove that you have a mortgage, a credible record of past success, and a keen desire to expand a well-run business, you are likely to get a loan.

Remember: the bank may require you to provide a guarantee, find a co-guarantor, or provide a mortgage. A mortgage can be your other business, property, or anything that reduces the risk of an unrecoverable loan.

Show the best.

When considering whether to lend you a loan, the bank will review your financial and business records. The bank may ask you for the following information:

Proof of loan repayment ability: you can provide your business plan to the bank.

Personal credit history: the bank will establish your personal credit report and conduct a personal credit rating.

Equity: generally speaking, it is your investment in the business, which is similar to the down payment on the mortgage.

Mortgage: any asset that a bank can protect when you default on a loan, such as your property, car, and other investments such as ships and jewelry.

Experience: your industry experience has the opportunity to develop your talents. In order to make the best impression on the bank, please make sure that detailed operational and management experience is included in the business plan.

Leased equipment

Once you have determined what kind of equipment you need to run a coffee shop, you should consider how to buy it. Renting equipment is a good choice.

Renting equipment allows you to spend the money you save on other important expenses. In addition, renting equipment requires much less paperwork and supporting materials than applying for a bank loan. Your business can also be more flexible, which is an advantage in the catering industry.

The best thing about renting equipment is that it doesn't show up on your balance sheet. Your future lending capacity will not be adversely affected.