How to Get a Small Business Loan for a Coffee Shop

How to Get a Small Business Loan for a Coffee Shop. For those that want to run their own business, or those that need to keep their coffee shop up and running, a small business loan can be helpful. These loans can be used to make equipment purchases, rent property, or add to the business's cash flow. Local financial institutions can help, or find the lender for your small business loan online.

Determine the amount of money needed to borrow through the loan. If your coffee shop needs equipment, get an estimate of cost. For other needs, get an estimated cost of not only start up funds, but running costs for several months to protect yourself from running out of money too soon.

Formulate a business plan either on your own, with software or by hiring someone. The business plan for your coffee shop will include estimated costs, estimated profit, management details, and an overall clear picture of what your business is and why it is needed.

Check out the Small Business Administration for the help in securing loans for small businesses such as your coffee shop. They offer a variety of advice and even loan programs that cost less than some local banks. The business plan helps to secure your loan.

Contact your local bank that you've done business with for years. They know you and therefore may be willing to loan money to you. For start up businesses, personal credit history is necessary to secure the loan.

Look into a line of credit or personal loan if you are unable to get funding otherwise. Your personal credit can be a source of funds for your small business as long as you use it wisely. Later, the established business's credit can get additional funding in the same way, from the same lenders.

Bank on your personal assets to help you get the coffee shop loan. If your business owns a building or valuable equipment free and clear, these assets can be used as collateral for a loan. As a last resort, consider the home equity in your home, though this is highly risky for a start up business.


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