Concession Loans and Financing

One of the first steps to getting started in food services as with any other business venture is acquiring startup capital which man require a concession loan. The immense amount of money that is required in order to successfully get a company off the ground is staggering. And while it would be nice to have the funds available just sitting and waiting to be used, it is more likely the fact that financial resources are hard to come by. In many cases, money motivation is the sole reason for becoming an entrepreneur to begin with. While it can sometimes seem impossible to come up with such a large amount of capital, there are conceivable ways to accomplish this task. There are loans and financing opportunities available from institutions. Getting investors can also be a way to get started. And, though less popular, saving the money required is a choice.

Small Business Loans

The first and possibly most popular way of obtaining the necessary funding is finding out about small business financing options. Some of these options include business loans, loans from a leasing establishment, and obtaining financing from a dealer of equipment you will need.

Obtaining a business loan from a bank or credit union is one way to generate financial resources. You will need to prepare and present a business plan in order to request a loan of a substantial amount. Things that should be included in this plan are an overview of your idea, cost analyses, equipment needed, where you will open, and other pertinent information that you might consider necessary. Other things that will be of importance to a bank would be your financial stability and ability to pay the loan off in a reasonable amount of time with timely payments.

Equipment Leasing

Leasing establishments are also available to loan capital and will need much of what a bank would need in the form of business proposals and statistics. While this is a viable way to get your hands on the money you need, be cautious because some of these establishments charge much more interest than typical loan companies.

Finally, there are many dealerships that provide equipment with credit options, such as concession trailer loans for new or used equipment. Similar to car dealers, some concession trailer dealers are happy to make payment arrangements with a buyer with the proper credit history. You need to purchase the equipment anyway and this can often be easier than obtaining a large amount of cash from a bank in the form of a loan. Financing in two sums can often be accomplished easier. Perhaps instead of a bank loan of $50,000, you will be able to finance from a dealer a trailer for $25,000 and the bank would approve the smaller amount of $25,000 in a loan. You would effectively get the same amount of money; it would just be in the form of a secured asset versus an unsecured loan. Small Business Loan or Lease

Not able to obtain a loan or financing? In this case there is an option. Many financial institutions do not feel comfortable loaning money in a certain situation where an individual might. This is where an investor or investors may come in to help. Instead, however, of simply loaning money, investors will wish, for their trouble, to have certain rights. These rights may include retaining ownership of a portion of the business and/or revenue produced. This is sometimes less desirable than a small business loan or other small business financing options but an option if a loan is unattainable.
 
In some cases, there are those who do not wish to finance a venture of this magnitude. Or it might be desirable to only finance a small portion of the required funds. This is a valid feeling. If this is the case, there are is an option of saving the capital needed. This may take longer and be more difficult, but the reward is not having any payments at the end of the day and having your business operating in the black much more quickly. Ways to accomplish this are extra hours at current jobs, extra jobs, and a cutback in lifestyle. By combining all of these strategies, the process of can be easier and faster.

All of these are legitimate ways to get the funds necessary to build a business. And while some are more difficult than others, the rewards from each style of acquiring capital are each different. Applying for a concession loans, contacting investors, and saving money are all viable means of collecting money to become an entrepreneur in concessions.