Finding finance for your coffee shop
Finding finance can be frustrating and hard work and we would like to help you out in the right direction. Finance can come from many different sources and you will have to work out what works best for you.
Family and friends
Arranging a loan from family and friends can work out very good for certain people. It is important to set up proper documentation when doing this for obvious reasons. Interest rates from friends and family are usually lower than the rates from banks.
Banks
Banks are usually the main source for finance. A bank will charge an interest rate on your loan and you might have to pay for arrangement fees. A bank would request a business plan and usually needs a down payment and insurance in case you can't afford the payment. This means that the bank can claim your property if you can't keep up with payments. At the moment of writing most banks will only lend you up to 70% which means that you need to lay down 30% of the total amount.
There are other sources such as specialist lenders and government trusts. How to start a coffee shop.co.uk would like to refer you for further reading to the website of Businesslink.