How to Present Your Business Plan to a Bank?

What Do Banks Really Want?

Many restaurant owners or those seeking to start a restaurant want to know how to obtain financing to buy a restaurant. Finding financing to start a restaurant or for buying a restaurant franchise can be a long and arduous process.

Debt financing is the most common form of financing and there are several types of lending institutions that offer debt financing. Traditional banks offer the lowest financing rates, or interest rates, among potential lenders as traditional banks are generally able to spread the risk of their loans among many customers. However, banks present the most difficult application process, require the most information and most likely will require the most collateral. Collateral is a tangible item, such as a building or equipment, which the bank can put a lien on as guarantee of loan repayment.

To be ready to request debt financing from a bank it is very important to understand everything a bank may require in order to consider a loan request. Making a good impression is just as important as the information provided so it is highly recommended that these items be professionally prepared and organized.

The first item is a business plan detailing how the restaurant will operate. The business plan should include basic operating plans, marketing ideas, an outline of strengths, weaknesses, opportunities and threats, three to four year financial projections and an outline of financial needs.

The second item is personal financial statements from all equity partners in the business. Banks like to know how much personal worth potential clients bring to the table. A bank may also require that personal financial statements be updated periodically while the loan is outstanding.

The third item banks typically require is the most recent three years of tax returns for all equity partners. These too will need to be kept current with the bank while the loan is outstanding.

A bank may also require items such as copies of partnership agreements, franchise agreements, building leases or property ownership deeds. The bank will analyze all of this information before approving or denying a loan request.

All of these items have a very common connection. They all require good restaurant accounting. Jeff Garcia, CPA specializes in restaurant accounting and can help any client prepare all the bank requirements in an impressive fashion to obtain financing for buying a restaurant franchise or starting a restaurant. Many restaurant owners that want to know how to obtain financing to buy a restaurant turn to Jeff Garcia, CPA.

At Jeff Garcia, CPA, all of our restaurant accounting services come with unlimited consultation and are easy to use with Internet access. We make things as convenient for our clients as possible. All our clients’ can upload their information or view financial reports 24 hours a day, 7 days a week, on our secure website. With our secure Internet portal, equipped with the latest in security technology and protocols, we are even able to offer our services to restaurant owners nationwide.

If you would like to know more about how we can help you present your business plan to a bank, please call us Toll Free at (888) 933-food(3663) or (713) 621-1142.