How to get a loan to buy a bar
Operating a bar is an exciting and rewarding business once you love what you are doing. Whether your bar is a neighborhood bar, a nightclub or a cocktail lounge the bar is you child project.
Though the bar can be very rewarding. So much so you can depend on it for your livelihood, things can go sideways very fast and you can fall on hard times fast.
The real issue here is that even after tour fascination about opening a bar, you still don’t where or how to raise capital to start. Before you venture into a bar business, you need to make proper research and understand your financial options. Buying a bar like every other business involves risks so you should be aware of these risks. Buying a bar is cool if you have the money to do so. This article however, would provide you with information on how to get bar loans with no credit.
A small business loan can be all you need to achieve your dream of buying and operating a bar. Below are the possible ways you can get a loan to buy a bar with no credit.
- Getting loans from friends and families
As a sole business owner or an aspiring one, getting loans from friends and families is a good way to assist you buy a bar. However be cautious when going about it. Families can be complicated at times. Families and friends loans would save you the headache of paying interests and they usually won’t hurry you to pay quick. You can set your own time that you feel is convenient for you to pay back the loan they gave you. But remember, this does not mean you should be lazy with your job of operating the bar after you have bought it.
Small business loans exist for individuals to assist individuals get funds to run their businesses. This is done though giving individuals subsidized or low interest loans as well as guarantee loans. The SBA loans as they are popularly called may just be what you need to make your dream of being a bar owner a reality. Especially if you don’t want the drama that comes from family and friends. Since they are usually low interest loans without much hurdles to cross before getting them it would not put you under pressure to refund it. This means that once you are diligent in running your bar business you would be free of the loan in no time. The only down side of this loan is that many banks don’t offer it.
- Micro loans
Micro loans are small business loans that is given to sell start-ups. They are usually less than $40,000 and can be paid back on gradually because they are small. Micro loans won’t entirely start a bar fully but can go a long way in furnishing it.
- Commercial loans
it is normal for most business ventures to obtain loans from commercial banks as well as credit unions but since we are talking about loans with no credit, we will stick to the commercial banks. You may not meet their criteria for a business loan. You may however meet the criteria for mortgage. You may need this if you want to expand the bar you just bought. If you also want to move the bar to a new location you will the mortgage loan also. However, loans from commercial banks may come with a little pressure when paying them back because it usually comes with monthly or weekly deadlines.
In addition, even with no credit there are certain criteria you would need to meet. Here are some of them
- Prove you experience
Your lenders need to know that you are capable of running the business. You need to show them you have the required experience need to succeed .
2. Provide proof of success
If you are just a bar manager and the bar has been open for up to 6 to 8 months and it is making consistent profit of around $9000. Lenders would be more open to give you loans to buy the bar outright .
There you have it guys. This tips would help you get the loans you need to buy a bar. We wish you good luck as you follow your dream of buying a bar and being a bar owner.