(PRWEB) September 18, 2012
Obtaining financing can be challenging for restaurateurs. "It's very difficult, because it isn't an industry that banks love. In fact, it is near the top of their ‘NO’ list," says Richard Santore, Vice President of Bielat Santore & Company, the Allenhurst commercial real estate firm that deals almost exclusively with the sale and financing of restaurants. "If you don’t know how to maneuver through the maze of financial requirements a bank is looking for, you will never find your pot of gold."
Bielat Santore & Company has been working with the same bankers for nearly three decades. “We know what they are looking for, we understand their requirements and we present them with a professional presentation that addresses all of their concerns. It is an acclaimed statement that our firm has never failed to fulfill the funding requirements of our clients. It is also true that prior to undertaking the challenging task of securing restaurant financing, our professional team vets the client and its needs, recommends the most pragmatic course of action and quarterbacks the entire funding process,” continues Santore.
There are several different options a restaurateur may want to explore. Bank financing guaranteed by the SBA (Small Business Administration) is the most likely possibility, especially for first time restaurant buyers. Commercial banks are more apt to lend to qualified restaurateurs under the government SBA program because the SBA guarantees 75% of the loan amount. Bielat Santore & Company aligns itself with preferred SBA lenders, meaning those banks that have achieved the “preferred status” with the government and can approve a loan absent of the routinely lengthy SBA approval process. Loan amounts can be up to $5,000,000 and have payment terms of up to 25 years when real estate is involved.
Other options employed by the firm to fund projects are limited partnerships, syndications, seller financing, installment sales and lease/options to name a few. With all of the above avenues of financing, the applicant restaurateur must be qualified. Amongst other prerequisites, both lenders and investors usually hold high at the top of their check-lists:
1. the experience and creditworthiness of the applicant;
2. the value of the collateral pledged by the applicant; and
3. the ability of the business to pay back the loan or investment.
Bielat Santore & Company has secured in excess of $500,000,000 in financing for its clients. To inquire into buying a restaurant and/or obtaining restaurant financing, visit the company website, http://www.123bsc.com, or call Richard Santore directly at 732.869.4200.