Alternative Business Funding for Small Businesses

Loan for Juice and Smoothie Shop

If you want to take advantage of a trending niche this year, it’s all about the juice and smoothie shops. Whether you’re planning to launch one or already have a shop, you’ll know the importance of financing. With this in mind, we want to talk about loans and other smoothie bar financing options in this guide.

All across the United States, consumers are voting with their feet and their dollars. Their feet are taking them inside smoothie shops and their dollars are going into the registers of these same shops. Americans are hyper-aware of their bodies, they want to be healthy, and smoothie shops are one way to support this lifestyle.

However, you don’t need us to sell you on the idea. Instead, you’re here to learn about a loan for smoothie shops and other financing options.

Importance of Juice Bar Financing

Transforming an idea in your head to reality is a mammoth task and keeping the dream alive is even more challenging. While some people reading this guide are at the beginning of their journey, others have been through the launch and now need help expanding (or simply surviving!).

Why is financing important? Firstly, no industry can escape technology these days, and this includes juice bars. In recent years, owners have recognized the importance of investing in technology. Therefore, you might need money to replace old equipment, implement an online ordering system, or invest in other technological solutions.

Secondly, you can’t run a smoothie shop without inventory, and this could be another reason why you need a small business loan. Especially for those who source their ingredients responsibly, this comes at a cost. If you sell GMO-free, organic, and vegan smoothies, keeping up with inventory demands is sometimes a challenge.

While these are the main two costs for businesses, you also need to think about:

• Health and safety compliance
• Marketing and advertising
• Recruitment and training
• App development and maintenance
• Expansion and upgrades

Even after this, you also need funds to fix and replace broken equipment and meet all other unexpected costs.

Smoothie Bar Financing Options

When you search ‘loan for smoothie shop’, you’ll see that most people talk about bank loans. Although this is certainly a strong option, it’s not available to everybody. For us, we don’t think that shop owners should lose their access to finance just because of their credit history or other challenges. With this, we’re going to discuss ALL smoothie bar financing options including alternative funding in this next section.

MCA and ACH Loans

Firstly, these are loans designed to help businesses without requiring security and strong financial histories. With a merchant cash advance (MCA), the idea is that you receive a loan in return for a percentage of future income. For example, as a smoothie shop, you may need some funds to get through winter. It’s frustrating because you know that summer is going to be busy, but bills are still coming through the door during the colder months. Therefore, you take the loan to meet short-term demands before then repaying through a percentage of your future income.

Although an AHC loan is essentially the same, the difference is that you repay using money in a bank account rather than revenue. Fortunately, you can use the money however you wish whether this means paying staff or investing in new equipment.

Bank Loans

If you have strong credit and the right experience and documentation, a bank loan is one of the most reliable loans for smoothie shops. The reason that everybody seeks a bank loan is that they have the best terms and rates. However, this fact also means that they’re difficult to obtain.

Small Business Administration Loans

Smoothie shops also seek SBA loans, and this is because the government backs a percentage of the loan amount to help. Ultimately, these loans are designed for those who have good documentation and credit but cannot get a bank loan. With the SBA backing up to 85% of the loan, you’re less of a risk to lenders. Like a bank loan, you still enjoy favorable terms and rates.

Equipment Financing and Leasing

We mentioned the importance of equipment for juice bars and smoothie shops, so it’s perhaps not a surprise to hear that these two smoothie bar alternative financing options are very popular. Though people often use the terms interchangeably, it’s important to note that they are very different.

With leasing, you’re paying for the privilege of using a company’s equipment. When the lease ends, the company takes the equipment back and you’re in the same position. Though typically more expensive, financing is where you pay for the product over several months or years. The difference is that you own the equipment and that the equipment itself is collateral for the alternative financing loan. If you struggle to make payments, the lender will simply remove the equipment from your site.

The reason this option is so popular is that it helps smoothie bars to get the equipment they need without paying for the whole thing upfront.

Unsecured Line of Credit

Like a personal credit card, sometimes you just need a line of credit for emergencies, and this is another alternative funding option for juice bar financing. With a line of credit, you can draw from the funds whenever you need, and you only pay interest on the amount borrowed. You might obtain this line of credit and then never use it, but it’s a good backup option.

Rather than a small business loan with all the restrictions, you can spend the money as you wish. It might be that you want to invest in new chairs or a new piece of equipment; use the line of credit (as long as you have the funds to pay it back in the future!). This is an ideal solution for responsible businesses that want the luxury of extra funds whenever required.

Unsecured and Secured Business Loans

Another alternative funding loan for smoothie shops comes in the form of secured and unsecured business loans. With an unsecured business loan, you’ll use your credit history and score to avoid collateral. On the other hand, a secured loan is the more traditional option where you secure the amount using an asset.

The option you choose depends on your credit history, your needs, and various other factors. Either way, you can borrow up to $500,000 and most businesses receive the funds within one week of the initial application.

Summary

There we have it, all the smoothie bar financing options you’re likely to need in the coming weeks, months, and years. If you need an alternative funding loan for a juice bar, contact South Florida Funding Group for advice today. We have experience in helping bars and shops just like yours, and we provide tailored advice. We’ll discuss your position in the market, your history of revenue, your financial needs, and the best small business loan or juice bar financing with all these considerations in mind.

Whether you need funds to launch your smoothie bar or want to expand, now is the time to explore your options. Consumers are seeking healthier foods and drinks, so take advantage of the wave and grow your smoothie shop this year with traditional or alternative funding!