Bakery Business Loan for Small Shops

Find Out How Much Cash Your Business Could Receive

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Help Your Business Rise with Bakery Loans

Bakery loans can provide you with the funding you need to grow your retail or wholesale bakery trade business. Whether you’re looking to expand your kitchen or add some new bakers to the team, you can rely on bakery shop financing to give you the boost you need.

Bakery Shop Industry Trends

Before deciding if you’d like to spend money to grow your business, it might be useful to see just how bakery shops are performing in today’s market. Retail shops are the most common types of bakeries, per Webstaurant Store. Unlike wholesale bakeries, which sell their products to grocery stores and restaurants for resale, retail bakeries sell right to customers. Some of the most prominent types of retail bakeries are bakery cafes, counter service, food trucks, specialty bakeries, and home bakeries.

According to IBIS World, the bakery industry in the U.S. has grown by 2.9% between 2014 and 2019. In 2019 alone, bakery businesses are expected to bring in $11 billion of total revenue; this represents a 1.1% increase in just this year.

The Panera Bread chain currently holds the largest market share of bakeries in the U.S. However, the industry is still highly segmented, with small, mom-and-pop shops dominating the rest of the market.

How to Spend Bakery Loans

When you’ve realized it’s time to grow your business, you might be ready to invest in a bakery loan. But how exactly do you plan on using it? There are plenty of ways to apply this type of funding to improve your operations. Here are just a handful of tactics:

Expand Your Space

If you’ve recently noticed you have more customers than you can accommodate in your current shop, you might want to grow your physical space. Maybe you don’t have enough ovens to bake the amount of pastries your customers desire. Or perhaps you need room to store your ingredients. Bakery loans give you extra financing to grow your space so you can handle the influx of business coming in.

Bakery Equipment Financing

Maybe the size of your space is sufficient, but the quality of the machines and appliances you’re using every day is not. Bakery loans come in handy, providing you equipment financing to upgrade your walk-in fridge, oven, mixers, and other appliances and tools. You can also use this cash to purchase new equipment if what you have just isn’t cutting it.

Hire Talented Bakers

Even if your storefront and kitchen are in tip-top shape, you need a talented staff of bakers and servers attending to your clientele. Bakery loans can help cover employee payroll costs so that you can give your current staff the pay and benefits they deserve. Or, if you plan on growing your business, you can use this funding to hire and train new workers.

Get the Word Out

Whether your bakery is the talk of the town or needs some promotional help, it’s a good idea to build a marketing strategy to get the word out. Bakery loans can help you cover paid promotions on social media, TV, radio, or any other platform. And if you don’t have time to handle this yourself, consider finding a professional. Business marketing loans can help you hire a marketing and social media manager.

Sources for Bakery Business Loans

When you’ve decided you want to invest in your bakery, you can seek out funding from one of several sources. Then, once you’ve secured the cash, you can figure out exactly how you’ll spend this working capital.

Small business loans are an important tool for growing your business. As the saying goes, “You need to spend money to make money.” There are two major providers of bakery loans: traditional banks and alternative lenders. Both come with their fair share of pros and cons. Let’s walk through them before you figure out how you want to secure funding for your bakery.

Using Banks to Secure Bakery Financing

Traditional banks are the option most people think of when they want to secure a small business loan. Bank loans come in large loan sizes, making them a great option when covering bigger updates. In addition, banks offer consulting services that provide insight to business owners looking for some expertise.

However, many small businesses have trouble working with large-scale banks. These lenders have long, complex application processes that make it tricky to apply for funding. Plus, they’re very competitive when approving businesses for loans. So, after waiting weeks to get approved for a bakery loan, you might not even get access to cash. This can be a big problem for small businesses that need to meet rising demands on short notice. As a result, many small business owners instead turn to alternative lenders to get access to the financing they need.

Getting Small Business Funding from an Alternative Lender

When you need working capital and don’t have time to spare, it might be best to turn to an online alternative lender. These services have fast, simple application processes that make it easy to get access to funding for your bakery – often in just days. Another benefit of working with an alternative lender is that they are much less strict than traditional banks when approving business owners for bakery loans. When business owners have a lack of steady cash flow, they will have a much higher chance of approval from an alternative lender than they would from a bank.

One reason some business owners shy away from alternative lenders is that they typically don’t offer large amounts of funding at a time. If your business needs a makeover that will cost hundreds of thousands of dollars, a bakery loan from an alternative lender might not be the right fit. However, even with some of this limitations, an alternative lender is typically the better option for securing small business loans.

Securing a Bakery Loan Through QuickBridge

The strong revenue and growth of the bakery industry, as well as the positive results of small businesses, demonstrate that now is the time to consider bakery loans. When you’re ready to obtain working capital, you can count on QuickBridge to give you the advice and funding you need. We specialize in providing loans for bakeries that are ready to grow to keep up with high demand. Best of all, we provide financing to bakers that might normally be rejected by traditional banks due to poor cash flow.

With a quick, easy application process, you can access the funding you need in as little as 24 hours. That means you can spend less time waiting around for your loan and more time optimizing your bakery business.