Looking for a loan for coffee shop or cafe? Let’s get straight down to business. First, please understand that this post will be helpful to you only if you have an existing coffee shop business, one that is already generating at least $450,000 in yearly sales and also one that has at least one year of operating history.
If you are rather looking for information on how to secure a loan to START a coffee shop or cafe, please go through our Small Business Loans category that will give you the type of information you are after. If your coffee shop is up and running and you need funds to expand your cafe, pay for payroll, buy additional coffee machines or that sort of thing, read on!
How to get a business loan for your existing coffee shop?
When it comes to loans, there are hundreds of options out there. The more traditional loan options are the ones that banks offer, after they take a collateral from you. But, what if you don’t have collateral to put up or maybe don’t want to put up collateral, even if you have collateral to offer.
This is where companies like OnDeck can give you a swift business loan for your coffee shop business. Unlike traditional banks that can make you wait over a month for loan approval, OnDeck can get your loan approved in a matter of hours if not minutes, with funds sometimes being dispatched in as little as one business day, although it typically takes 3-4 business days before funds are available.
But first, who is OnDeck. Are they credible?
OnDeck is a publicly traded company (NYSE:ONDK). They have issued over $5 Billion in business loans to small business owners just like yourself. Small business owners owning cafes, restaurants, bars, medical clinics, auto-body shops etc.
OnDeck issues loans with interest rates as little as 9% although they can go up as high as 30% or even more, depending on the strength of your business (See below).
How much of a loan can OnDeck give my coffee shop?
OnDeck can process a coffee shop loan anywhere between $5,000 to $500,000. The loan amount that will be issued to you will depend on the strength of your coffee shop’s business history, as explained below.
Will your coffee shop qualify for an OnDeck Business Loan?
If you can answer yes to the following questions, there is no reason why you can’t qualify for an OnDeck business loan.
- Do you have a minimum credit score of 500? (660 preferable)?
- Has your coffee shop been in business for at least 1 (One) year (7+ preferable)?
- Does your coffee shop generate at least $100,000 in yearly revenues ($450,000 + preferable)
If you answered yes to these questions, you can get started with an online application at OnDeck in just a matter of minutes, with an approval given in a few more additional minutes. The actual funding, as we mentioned earlier, can take 1-4 days.
If you want to read more about how to get an OnDeck business loan for your coffee shop, please read our popular post on how to get emergency business loans. If you want to more specifically learn about OnDeck and read about their reviews, please read our OnDeck loans review post here.
Documents / Paperwork / Information you will typically need to submit to secure a coffee shop loan from OnDeck
- Loan application (Filled out Online here)
- Business tax ID
- Average bank balance of your coffee shop business
- Estimated annual gross revenue of your coffee shop business
- SSN of coffee shop owner
- Federal or State issued ID of coffee shop owner
- Proof of AT LEAST 5 deposits to the coffee shop’s business checking account every month
Sometimes, depending on your coffee shop’s operating history, you might also be asked to provide your coffee shop’s bank statements for the preceding 2 months along with statements of your credit cards for the preceding three months. In any case, getting a loan for coffee shop or cafe through OnDeck will be a far LESS tedious process than obtaining a loan from a traditional bank.
Apply for an OnDeck business loan for your coffee shop here. Get approved in as little as 10 minutes!