During times of economic hardship, keeping a restaurant open and running smoothly, while still paying your employees, can be a daunting and stressful task. The restaurant industry requires consistent cash flow to pay for its many day-to-day operating expenses. Here are four restaurant industry loans you could use to keep your restaurant open and successful during a time of economic hardship.

1. Business Loan or Line of Credit

Although you never want more debt than you can handle, a new long-term business loan given by a bank or other financial institution will give your business the overall best rates and terms. They are usually easy enough to secure as long as your credit is good. Small business loans are more difficult to secure because lenders will look for established success; something that may be difficult to show during a time of financial crisis. A bank line of credit will give you the ability to spend and payback based on your expenses. Plus, the line of credit in the form of a credit card will come with cashback or other incentives to keep spending.

2. Restaurant Equipment Leasing

A smoothly operating business in the restaurant industry requires equipment functioning at the most reliable level. Updates, repairs, and purchases of new equipment are essential to everyday operations. Instead of purchasing new equipment through a loan or line of credit, you could finance the equipment directly. In the long run, due to interest rates, you will end up paying more for the equipment than purchasing it outright, but sometimes that isn’t an option in difficult times.

3. Merchant Cash Advance

The restaurant industry relies mostly on credit and debit card purchases. A merchant cash advance is when a restaurant uses future revenue in exchange for immediate cash. The cash the restaurant receive can be used almost immediately for operating expenses, payroll, or inventory purchases.

4. Stocks

The restaurant industry uses stocks too, like other businesses, so you could leverage the value of any stocks you own to get a new line of credit for financing. Economic hardships may make this type of financing especially difficult, but if the value of your stocks is still high, then it’s an easy way to get cash.

Times of economic hardship can greatly affect the restaurant industry and its owners. By applying for new forms of financial assistance, you can keep the doors to your business open and recover when times are better.

Here at Quick Capital Funds, we regularly help startups, small to mid-size and large businesses get their hands on the necessary funding through our commercial finance programs. Our business loans come with great interest rates that are very beneficial to all businesses types.