Bakery Loans for Small Business Shops
Find Out How Much Cash Your Business Could Receive
Help Your Business Rise with Bakery Loans
Bakery loans can provide you with the funding you need to grow your retail or wholesale bakery trade business. Whether you’re looking to expand your kitchen or add some new bakers to the team, you can rely on bakery shop financing to give you the boost you need.
Bakery Shop Industry Trends
Before deciding if you’d like to spend money to grow your business, it might be useful to see just how bakery shops are performing in today’s market. Retail shops are the most common types of bakeries, per Webstaurant Store. Unlike wholesale bakeries, which sell their products to grocery stores and restaurants for resale, retail bakeries sell right to customers. Some of the most prominent types of retail bakeries are bakery cafes, counter service, food trucks, specialty bakeries, and home bakeries.
According to IBIS World, the bakery industry in the U.S. has grown by 2.9% between 2014 and 2019. In 2019 alone, bakery businesses are expected to bring in $11 billion of total revenue; this represents a 1.1% increase in just this year.
The Panera Bread chain currently holds the largest market share of bakeries in the U.S. However, the industry is still highly segmented, with small, mom-and-pop shops dominating the rest of the market.
How to Spend Bakery Loans
When you’ve realized it’s time to grow your business, you might be ready to invest in a bakery loan. But how exactly do you plan on using it? There are plenty of ways to apply this type of funding to improve your operations. Here are just a handful of tactics:
Expand Your Space
Bakery Equipment Financing
Hire Talented Bakers
Get the Word Out
Sources for Bakery Business Loans
When you’ve decided you want to invest in your bakery, you can seek out funding from one of several sources. Then, once you’ve secured the cash, you can figure out exactly how you’ll spend this working capital.Small business loans are an important tool for growing your business. As the saying goes, “You need to spend money to make money.” There are two major providers of bakery loans: traditional banks and alternative lenders. Both come with their fair share of pros and cons. Let’s walk through them before you figure out how you want to secure funding for your bakery.
Using Banks to Secure Bakery Financing
Traditional banks are the option most people think of when they want to secure a small business loan. Bank loans come in large loan sizes, making them a great option when covering bigger updates. In addition, banks offer consulting services that provide insight to business owners looking for some expertise.
However, many small businesses have trouble working with large-scale banks. These lenders have long, complex application processes that make it tricky to apply for funding. Plus, they’re very competitive when approving businesses for loans. So, after waiting weeks to get approved for a bakery loan, you might not even get access to cash. This can be a big problem for small businesses that need to meet rising demands on short notice. As a result, many small business owners instead turn to alternative lenders to get access to the financing they need.
Getting Small Business Funding from an Alternative Lender
When you need working capital and don’t have time to spare, it might be best to turn to an online alternative lender. These services have fast, simple application processes that make it easy to get access to funding for your bakery – often in just days. Another benefit of working with an alternative lender is that they are much less strict than traditional banks when approving business owners for bakery loans. When business owners have a lack of steady cash flow, they will have a much higher chance of approval from an alternative lender than they would from a bank.
One reason some business owners shy away from alternative lenders is that they typically don’t offer large amounts of funding at a time. If your business needs a makeover that will cost hundreds of thousands of dollars, a bakery loan from an alternative lender might not be the right fit. However, even with some of this limitations, an alternative lender is typically the better option for securing small business loans.
The strong revenue and growth of the bakery industry, as well as the positive results of small businesses, demonstrate that now is the time to consider bakery loans. When you’re ready to obtain working capital, you can count on QuickBridge to give you the advice and funding you need. We specialize in providing loans for bakeries that are ready to grow to keep up with high demand. Best of all, we provide financing to bakers that might normally be rejected by traditional banks due to poor cash flow.
With a quick, easy application process, you can access the funding you need in as little as 24 hours. That means you can spend less time waiting around for your loan and more time optimizing your bakery business.
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Quickbridge has been a valued contributor to the success of our company. Providing timely support fueling company growth.