In 2017, catering companies around the U.S. generated $12 billion in revenue and employed nearly 270,000 American workers. From 2013 to 2018, the industry grew at average rate of 1.8% per year, and, as corporate profits and expendable income continue to improve in the next few years, the catering industry is expected to keep growing. If you’re looking for a source of streamlined, affordable financing for your catering company, SBA Express loan might the solution you’ve been searching for.
How SBA Express Loans Can Help Catering Companies Grow
SBA Express loans can provide businesses up to $350,000 in financing, which they can use for working capital, purchasing equipment, and buying or renovating commercial real estate.
Catering companies can utilize SBA Express loans for:
Marketing: Social media and internet marketing are some of the best ways to spread the word about your catering company— and fortunately, you can fund these efforts with an SBA Express loan.
Working capital: High quality supplies, employee salaries, and expenses like utilities can make it difficult for a catering business to expand, especially during a slow season, but an SBA Express loan can often help.
Renovating a building: If your catering company is growing, and it needs a new headquarters, you may want to rent or purchase a building and outfit it with one or more kitchens— and you may be able to use an SBA Express loan to do so.
Buying a catering company: Whether you want to purchase a competitor to make your current company larger, or you want to get into the catering business for the first (or second, or third) time, SBA Express loans can easily be used to purchase an existing company.
SBA Microloans and SBA 7(a) Loans Can Also Help Catering Companies Thrive
Smaller catering companies, especially those that don’t have the best credit, might find that an SBA Microloan is an even better choice than an SBA Express loan. Microloans can only offer amounts of up to $50,000, but some lenders will approve borrowers with credit scores as low as 575, making them great for businesses that are working to improve their credit scores.
For larger catering companies, the SBA 7(a) loan may be the ideal choice. 7(a) loans can offer up to $5 million in financing, which can be used for a variety of business purposes, including equipment, working capital, and owner-occupied commercial real estate.