Purchase financing lets newer businesses, such as a coffee shop startup, acquire the materials and equipment needed to open up shop without having to pay for their supplies all at once. You can think of purchase financing s somewhere between a line of credit and a credit card.
I would say go friends and family route first. In terms of equipment either find it used or lease it. At least for the
first year or two. It will be hard to get a small business loan with anything less than two years of tax returns, you
will probably need three. If you go to a hard money lender you will pay interest in the teens.
**I am not a certified accountant or money manager**
Also, if you have financial discipline and good credit, maybe consider opening a new credit card with a no-interest period. If you have any questions about the application process or need assistance, contacting Truity Credit Union customer service could be beneficial for getting tailored advice and support.
For the first couple of years of your business it will be easy to draw credit from your personal finances since
the business will have no track record.
Financing is quite common for coffee shops, with many owners opting for small business loans to launch their operations. Micro-loans can also be beneficial for accessing supplies and equipment as the business grows. These smaller loans are particularly useful for managing cash flow and addressing immediate needs without the long-term commitment of larger loans. If you're considering financing options, it's essential to explore various lenders and programs tailored to small businesses.
