ILS Offers Restaurant Equipment Financing as Food Service Industry Growth Spikes in the third quarter of 2014
Innovative Lease Services Inc. (ILS), leading provider of funding for small businesses nationwide, as experienced a spike in food service businesses seeking working capital loans in the third fiscal quarter of 2014.
According to the National Restaurant Association, the commercial restaurant service industry has generated over $683 billion dollars in revenue in 2014, representing an increase of nearly 20% in the past 4 years. As a source of economic development, the industry is a heavyweight, employing 13.5 million, or 1 out of every 10 US workers. In an industry of this scale, competition is strong as is the need for new equipment and lending to support it.
Reported September 2014 by the National Restaurant Association, 59% of food service establishments have made capital expenditures including remodeling and equipment purchases in the past 3 months. In addition 59% of food service establishments foresee making capital expenditures in the next 6 months. To meet this need, ILS provides financial services to all types of commercial restaurant establishments such as equipment suppliers, manufactures, restaurants, food trucks, caterers and more. Popular financing programs through ILS include Equipment Financing, Working Capital, Vendor Financing Programs and Equipment Leasing.
The Equipment Leasing program in particular allows food service establishments an opportunity to upgrade equipment to drive increased business. As a returning ILS customer, Boret Rose, owner of Up In Smoke Caterers of Randallstown Maryland was in need of new equipment to keep up with their success and increased demand. When he approached his local Credit Union for funding, however, he discovered that the requirements were difficult to meet, “I was not able to provide the Credit Union with the very high credit score or the permanent location they required; I’m a caterer and work remotely.” he stated.
When Rose approached ILS he was relieved about the ease of working with an alternative lender and was able to quickly receive financing needed for their first fully loaded concession trailer and Southern Pride Smoker. Regarding his experience with ILS he commented, “I’m glad I found them. I was concerned that my being on the East Coast and ILS being on the West Coast might be an obstacle but it took me longer to get an answer from my Credit Union just across town than it did from ILS. Thanks to them, my new equipment is in place and I can expand and meet the demands of my growing business.” he said.
Equipment Financing also serves many suppliers who have increased their sales using the ILS Vendor Program. Economy Restaurant Equipment & Supply Co. located in San Diego, California provides food service equipment including all major brands to all types of food service establishments including hotels, restaurants, wineries, business offices, military bases, laboratories and residential clients. Before partnering with ILS, they experienced a loss of potential sales due to customer need for payment programs and their lack of financing options available. Owner, Jeffrey Spellman related “We saw an immediate increase in sales for those customers who needed financial help in order to get their new food service establishment up and running. ILS made this avenue of business for us open up, increasing our customer base and increase profits.”
For more information on how Innovative Lease Services can serve your restaurant business needs, contact ILS today.