Feeding Your Business Cash Flow Needs
If you haven’t already, now might be the time to think about catering business loans. Funding can be a great way to overcome cash flow problems or deal with a staffing challenge. A good loan for food caterers can help you get ahead without excess debt.
In practice, the need for loans is simple. Caterers face a heavily gig-focused business model. If you have a consistent supply of customers, then you may not have trouble. But chances are you face seasonal fluctuations. In spring and summer, weddings and big outdoor parties probably lead to more demand. At the holidays, special events, such as office parties, can drive demand. At other times of the year, the supply of gigs can go dry.
Seasonal demand is just one business challenge facing caterers. The right catering business loan can change your business for the better.
An Alternative Approach to Catering Business Loans
Most caterers face a core business problem that, when combined with seasonal fluctuations, can cause major cash flow issues. That problem is one of capital. Until you get paid, you don’t have cash on hand to cover expenses. But when you get a gig, you need supplies. Some caterers – rather than considering catering business loans – will dip into personal assets as they’re getting started to finance their needs. While this may suffice in the short-term, this isn’t a good long-term strategy. Over time, you’ll need a kitchen, equipment, and of course, the ability to purchase food. You can take partial payment prior to an event to help float early costs, but that won’t cover everything.
This cash flow problem can leave caterers stuck. Traditional catering business loans from a bank aren’t really an answer either. You won’t get far going to a bank saying you need $50,000 within a week so you can prep for a big event. Banks simply don’t get enough value from such small loans. Their application processes are also long and complex.
Alternative lenders like QuickBridge, on the other hand, are a natural fit for catering business loans. They build their lending process around a quick, online application and small, short-term loans. That’s why they’re great for catering business financing because they give you ready cash that you can use as you need it. This can help you deal with cash flow problems and help you invest in your business.