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Business Loan for Cafe

  • 26-05-2020 5:21pm
    #1
    Dublin94
    Registered Users, Registered Users 2 Posts: 1 ✭


    Apologies if something similar has been asked already, I've taken a look and can't see much. I know there's been a lot of information surrounding cafe/coffee shop start up's but I'm more focused on the business loan.

    Basically, I am completely new to starting up a business and I understand that there are a million and one other things to consider than just the money but for starters, as someone who doesn't have the personal funds to begin this venture, are business loans a popular option? I'd love to hear from anyone who has used this as a way of starting their own business, more so if that happens to be a cafe.

    For anyone with information on it, I'd be grateful to know how exactly it works. I know I can ring a bank and ask these questions but would like to hear first hand also.

    I can't imagine a bank would be too forthcoming in handing over 30-50k without being very sure of the business but just how difficult is it to secure a bank loan? And finally, I know that there are plenty of 'hidden' costs to opening a cafe, so is it worth adding the extra loan repayment every month?

    As I've said, I'm new to this so any advice or information is appreciated!


Comments

  • #2
    Gerryhide
    Registered Users, Registered Users 2 Posts: 19 ✭Gerryhide


    Yes they are popular, nearly every business has one. The bank will probably give you a business loan so long as you personally guarantee it and have a good history or get someone as guarantor on the loan. However, If its for something wild as a new cafe venture even with personal guarantees they will probably say no to which they would be doing you a favour.


  • #3
    Bandana boy
    Registered Users, Registered Users 2 Posts: 4,337 ✭✭✭Bandana boy


    If somebody with no experience in running a cafe and no cash up front approached me for a loan it would need to be a stellar business case to get any cash from me.

    Cafes are not that expensive to start off ,unless your angling for a premium location can you save the cash up before embarking on this journey ?


  • #4
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,430 CMod ✭✭✭✭Pawwed Rig


    Look at grants before you look at loans. Not sure if there are any but there might be. Grants are mostly related to how many people you will end up employing.

    Be very careful here before putting an irreplaceable asset as a guarantee for a loan for a high risk venture like a coffee shop. The sector was decimated during the last down turn and I can see more decimation now as people do not return to work.


  • #5
    silver2020
    Registered Users, Registered Users 2 Posts: 2,045 ✭✭✭silver2020


    No business experience

    No capital of your own

    No business plan so far



    absolutely zero chance of getting a bank facility.


    A bank will want to see you putting money into a business. they will also want to see a proper business plan and will want to see that you have the experience to make it work. - Running a business and working in a similar field are two very different sets of skills.


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