| Banks and commercial lenders will ask that you | | | | drawn up stating how the loan will be repaid, and |
| put a portion of your own money into your | | | | how much interest will be paid. |
| restaurant business, before they will think about | | | | Home mortgage depending on how much equity |
| lending to you. You will fare better if you have | | | | you have in your home, you may be able to |
| experience in the restaurant business, the | | | | obtain a mortgage to finance your restaurant |
| stronger, the better. If you have a strong | | | | business. |
| background working in a restaurant, you should be | | | | Life insurance policies You may have monetary |
| able to get your loan without too much red tape. | | | | value built up in your life insurance, and you are |
| If you do not have a great deal of experience, | | | | able to borrow against the cash value and pay a |
| you may want to gather more by taking a job | | | | lower interest rate. |
| with a restaurant. You may also want to take a | | | | Government programs In the right |
| college course in restaurant management. | | | | circumstances, the office of Housing and Urban |
| You can obtain financing several ways. | | | | Development HUD will give loans to restore a |
| The Small Business Association they have | | | | building. They will not provide a loan to finance |
| several regular and specialty loans to suit your | | | | your restaurant business, but they will lend money |
| particular situation. | | | | to renovate. HUDs loan application asks you to |
| Your own money IRA accounts, home | | | | describe your business plan. This statement will |
| mortgage, personal savings and other assets, and | | | | include an idea of how much income your business |
| friends or members of your family. | | | | will bring in within a certain time, show when you |
| Angel Investors private investors who will lend | | | | will need to draw cash from the loan and how |
| money for small and large business ventures. | | | | that cash will be used, and you will be asked to |
| There is quite a large group of Angel Investors in | | | | explain how you would repay the loan. |
| the United States. You can find them at the | | | | There are several software programs that will |
| angeldeals website, and by networking with those | | | | help you to generate a plan for your restaurant |
| who have started a business of their own. | | | | business. You should obtain the money you will |
| Commercial financing companies, banks, and other | | | | need at least six months before you plan to start |
| lending institutions, public and private. | | | | building your business. To be on the safe side, you |
| Friends and relatives when you borrow the | | | | will want to have enough cash to see you through |
| money from relatives it can be a pretty touchy | | | | several months of business until your cash flow is |
| business. Make sure you keep the loan on a | | | | built up. |
| business level, make sure you have legal papers | | | | |