Starting a bakery can be exciting, yet nerve-wracking. If you’re considering starting a business, you’re not alone. The process is not easy, but the rewards are amazing. However, if you’re new to baking, you might not know where to start. Here are some tips to help you get the funding you need to start a bakery. First, you need to understand the process of securing funding for your new business.
When applying for funding, you’ll need to have at least 30 percent of the money to launch the business. If you’re taking over an existing business, you’ll need at least a percentage of the capital in order to launch your business. If you’re setting up under a franchise, you’ll also need a certain amount of equity. Building up this equity is important to the success of your bakery, so you may also want to consider borrowing from family or friends.
Once you have secured the financing, you can invest in other parts of the business. An inventory loan can help you buy the baking equipment you need to run your business. If you’re planning to start catering, you might want to invest in a food truck to expand your reach. This way, you’ll be able to cater to customers in addition to your brick and mortar location. Alternative lenders can also provide you with a lump sum to pay off a business loan.
If you have a bad credit score, consider applying for a mid-prime alternative business loan. These loans are simple to apply for and often provide funding within days. You can expect rates in the eight to twenty percent range and terms of 18 to five years. If you’re looking for a small business loan for your bakery, consider applying for a mid-prime alternative business loan. If you have bad credit, your chances are higher of qualifying.