Just a quick post today to let you know if you don't already, that you should definitely check your credit report before you make any appointments to meet with any type of lender for your new restaurant. This is a necessary step to getting a restaurant financed through anyone as they will want to make sure that you are current with your bills and pay on time. Start now to pay everything on time and learn how to get a free credit report.
You can get a free credit report every year by going to creditreport.gov. If you need more than one per year you will be charged a fee of $15.00 each time you request your report.
Once you get your credit report, let's take a look at what you want to check. Your lender will also get a copy of your report so, it's a great idea if you already know how it reads before meeting with the lender.
Here's what to look for on your credit report and how to make changes if needed:
Showing posts with label financing a restaurant. Show all posts
Showing posts with label financing a restaurant. Show all posts
Wednesday
Thursday
Organize your Bills for the Lender
Let's Get Organized!
Keep a clean and organized office at home as great practice for when your new restaurant is up and running! Good habits start at home.
Your lender is going to want all the information you have about your current finances in order to determine your eligibility to get a loan so you'll want to make sure you are organized. Use these simple strategies for organizing your bills so you're ready when your potential lender is ready!
Use a file cabinet that looks good - take it to your restaurant later! Keep it affordable
** Keep a file system
Any kind of file box will work and you can keep manilla folders inside of it, labeling each of those folders with the name of the bill. Once you start to use a file box, all your bills can easily be added once they're paid and you'll be able to find the most recent interest rate you're being charged, the total balance due and the monthly amount due. Your lender will no doubt ask you all of these questions so a file box will really come in handy. You can find file systems at any office supply store, Pier I and online at places such as amazon.com and you'll get free shipping with amazon and some good deals when you buy items in bulk.
Keep a clean and organized office at home as great practice for when your new restaurant is up and running! Good habits start at home.
Your lender is going to want all the information you have about your current finances in order to determine your eligibility to get a loan so you'll want to make sure you are organized. Use these simple strategies for organizing your bills so you're ready when your potential lender is ready!
Use a file cabinet that looks good - take it to your restaurant later! Keep it affordable
** Keep a file system
Any kind of file box will work and you can keep manilla folders inside of it, labeling each of those folders with the name of the bill. Once you start to use a file box, all your bills can easily be added once they're paid and you'll be able to find the most recent interest rate you're being charged, the total balance due and the monthly amount due. Your lender will no doubt ask you all of these questions so a file box will really come in handy. You can find file systems at any office supply store, Pier I and online at places such as amazon.com and you'll get free shipping with amazon and some good deals when you buy items in bulk.
Wednesday
What paperwork should you be preparing to own a restaurant
Taking your next step in owning a restaurant has to be to start to get your own paperwork in order so that's what we'll discuss here.
Before you go to any lender and it doesn't matter if that's going to be a bank, credit union, family member or another private financier, you'll want to start to get your own ducks in a row and that means getting all your paperwork in order!
Tax Returns
It may seem obvious that you'll need at least three years of tax returns and many times you may also need up to five years but, trust me, some people haven't even filed last year taxes so it must be discussed.
What information will tax returns provide to your lender?
Your tax returns will show a lender your current address and prior ones. A lender may appreciate the fact that you have been at the same address for 3-5 years and shows you are stable and a member of the community. If you have had an unstable address meaning you've been moving around a lot, be ready to explain why that is the case and how you are now done moving and ready to take on the responsibility of owning your own restaurant. This will be discussed more in your business plan but, for now just now that it will be something that comes up with your financial institution.
Tax returns show your income which is a very important part of getting financing for your start up restaurant.
Tax returns show your social security number and your financier can instantly (or at least rather quickly) get your credit report to match it against your return.
Tax returns also show not only your income but, any loans and debt if you have itemized your deductions.
Your employer is listed on your tax returns so your financier will be able to verify the information you tell them simply by comparing it to your tax returns.
Can you tell by now that your tax return tells a lot about you already so
Before you go to any lender and it doesn't matter if that's going to be a bank, credit union, family member or another private financier, you'll want to start to get your own ducks in a row and that means getting all your paperwork in order!
Tax Returns
It may seem obvious that you'll need at least three years of tax returns and many times you may also need up to five years but, trust me, some people haven't even filed last year taxes so it must be discussed.
What information will tax returns provide to your lender?
Your tax returns will show a lender your current address and prior ones. A lender may appreciate the fact that you have been at the same address for 3-5 years and shows you are stable and a member of the community. If you have had an unstable address meaning you've been moving around a lot, be ready to explain why that is the case and how you are now done moving and ready to take on the responsibility of owning your own restaurant. This will be discussed more in your business plan but, for now just now that it will be something that comes up with your financial institution.
Tax returns show your income which is a very important part of getting financing for your start up restaurant.
Tax returns show your social security number and your financier can instantly (or at least rather quickly) get your credit report to match it against your return.
Tax returns also show not only your income but, any loans and debt if you have itemized your deductions.
Your employer is listed on your tax returns so your financier will be able to verify the information you tell them simply by comparing it to your tax returns.
Can you tell by now that your tax return tells a lot about you already so
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