Applying for a Coffee Shop business loan is all good but you need to start somewhere. With the recent uptake of coffee by old and young alike, it would seem like the stars have aligned for you to begin your very own coffee shop. It’s not all laid out in the stars however, as cafes take commitment, time, and money – something we’re here to help you with.

Despite the portrayed easy-going atmosphere that coffee shops garner in the media, this is not a good model for money making, and will eventually lead to closures all round, which nobody wants to see, not least of all you, the owner. To combat this, there are a few things you should know before beginning your caffeine crusade…

For starters, many people get the wrong idea about cafes, so to get yourself some first-hand experience, we recommend visiting a variety of coffee shops, as well as setting time aside to work in a coffee shop to gain crucial industry experience.

This will help you get a good feel for the conditions a fast-paced business like a coffee shop performs under, including the brewing and selling of the coffee, marketing coffee beans or coffee machine pods and other potential merchandise opportunities. These other sales options are good to consider because as well as being a good way to market your brand, it also helps to form a stronger ‘bond’ with your customer base. This idea has permeated society through the introduction of big name coffee brands into the mainstream like Costa Coffee, Cafe Nero and, of course, Starbucks Coffee – which all interact with their customers through branded mugs, apps on their phones, and the selling of coffee products under their label.

Location is a key concept that often gets overlooked. The target customer for a local coffee shop is often grab and go, during the week this is busy office workers stopping by for a quick break, and on the weekend this is bustling shoppers that are keen to get back to their purchases. As a result, your ideal location will be close to points of interest and on land that has consistently heavy footfall.

Finance Solutions for Cafés and Coffee Shops:

Making an immediate profit from a small business is very difficult, and often frankly unrealistic – this is true in all sectors of business, with a cafe being no different. When considering how to start a café business, startup costs can range from £20,000 to £100,000 depending on the size, style, location and a few other factors.

There are also recurring costs to consider, such as the cost of rent, utility bills, and general repairs that are bound to crop up, not to mention the occasional costly problems that arise when running a high-intensity, high-stamina business like a coffee shop. To help you cope with these seemingly staggering costs, we have a few finance options for you to consider.

Business Loans for Coffee Shops

We can also offer unsecured business loans to coffee shop, café and tea room owners. By choosing a business loan, owners can look to borrow £1,000 to £200,000 to kick start or help maintain your company or fund a new business venture.

As with a merchant cash advance, the money should be swiftly supplied to your account in 24 hours, which will grant you the option to quickly dispatch any problems that may have arisen preventing cash flow, or alternatively get you started on a new business venture without so much as days wait. Once the funds have been received, they will be paid back in monthly instalments, with interest rates applied and included.

An “unsecured” business loan simply means that you will not be expected to secure the funding against any of your valuable assets, such as equipment, property or land. This can be a real advantage to small or new business owners, that maybe don’t enjoy the luxury of having expensive possessions to guarantee repayment. Instead, after signing the personal guarantee, the owner will become responsible for meeting any outstanding repayments if the business fails to pay. This ensures that all parties involved find themselves paid.

How To Apply

Step One:

Head over to our application page. We will ask you for further details about your business, to ensure that we match you with the lender best suited to you and your company. We will need to know:

  • The name of your coffee shop business
  • The number of months or years you’ve been trading
  • Your average monthly card sales or monthly turnover

Step Two:

We will then ask you to provide us with:

  • Your title, first name and surname
  • Your position within the business
  • Your email address and telephone number

Step Three:

After these details have been provided, click to accept the terms and conditions and then click ‘get my quote’. Your application will then be processed and assessed by one of our approved business finance suppliers.

Step Four:

One of our account managers will soon be in touch with you by either phone or email to discuss the terms of your loan or cash advance agreement.

Step Five:

Once you have taken your time to carefully read through all of the terms of agreement, you should please sign the relevant documents and return them to the lender. You can then expect to see to the funding in your account within as little as 24 hours.