Equipment financing fits a fryer line or coolers priced on a quote; a credit line fits repeating orders such as packaging; a working capital loan fits payroll for a second location's staff. Connecting gas, water or a drain to any of it is property work this site leaves out. A merchant cash advance, which is not a loan, is collected from card sales.
At a glance
- Full-Service Restaurants (NAICS 722511), Marquette County, MI
57 employer establishments (CBP 2023)
- Limited-Service Restaurants (NAICS 722513), Marquette County, MI
46 employer establishments (CBP 2023)
- Full-Service Restaurants with a ZIP 49855 address
33 employer establishments (ZBP 2023)
- Paid employees, Full-Service Restaurants, Marquette County, MI
1,091 (CBP 2023, pay period incl. March 12)
From quote to delivery: a fryer line on a restaurant loan in Marquette, MI
A sit-down restaurant replacing its fryers starts with a written quote, and the quote shapes the whole request. In this invented example the line is two floor fryers, a fry dump station and a filter cart, quoted at $16,870 delivered.
- The kitchen gets an itemized quote naming each unit, its model and the delivery charge.
- The owner calls Cloverbrook with the quote and the week the old fryers come out of service.
- Cloverbrook passes the request to funding partners; a partner may ask for recent bank statements and a list of current loans and leases.
- If a partner makes an offer and the owner signs it, the partner may pay the vendor, and the fryers are delivered.
With equipment financing, the invented $16,870 at a 10.4% annual rate over 48 months comes to $431.11 a month; in this invented case the 48 payments total $20,693.28, so $3,823.28 of it is interest. The gas hookup behind the line is property work outside this site.
Restaurant loans in Marquette, MI for paper goods: a quick-service restaurant's three-month packaging order
A quick-service restaurant goes through cups, lids, clamshells and carry-out bags every day, and a packaging supplier may price a three-month supply below the cost of the same goods ordered month by month.
In this invented example the three-month supply costs $6,330, against $2,330 a month ($6,990) when ordered monthly, a difference of $660. A draw on a business line of credit pays the supplier, and the restaurant pays the line down by an invented $2,110 at days 30, 60 and 90.
At a 13.15% annual rate in this invented example, figured daily on the balance, the draw costs $136.83 in interest, which leaves $523.17 of the invented $660 difference.
If the supplier changes its price, or the restaurant has no room to store three months of boxes, the result changes, so the comparison is worth redoing with real quotes. A short working capital loan is another way to pay for a one-time order.
Reach-in coolers and a countertop combi oven: how a Marquette, MI restaurant spreads the cost over 36, 48 or 60 months
Reach-in coolers and a countertop combi oven can stay in service for years, so the length of the loan is a real choice. The invented package below is $23,780 at a 9.7% annual rate, shown over three terms.
| Term | Monthly payment | Total of payments | Interest |
|---|---|---|---|
| 36 months | $763.97 | $27,502.92 | $3,722.92 |
| 48 months | $599.70 | $28,785.60 | $5,005.60 |
| 60 months | $501.75 | $30,105 | $6,325 |
Going from 36 to 60 months in the invented table cuts $262.22 from the monthly payment, while the interest over the term climbs by $2,602.08 (invented).
Hooking up a combi oven can take a water supply, a floor drain and its own electrical circuit. That hookup is property work outside this site; the oven and the coolers themselves are equipment.
Lease, loan or credit line: matching restaurant equipment in Marquette, MI to a funding type by how long it lasts
One way to choose is by how long an item stays in service and how soon the same cost comes back.
| Cost | How long it stays in service | Funding type that may fit |
|---|---|---|
| Ice machine | Several years | Equipment loan or lease |
| Point-of-sale tablets and card readers | A few years, then replaced | Lease |
| Smallwares such as pans, sheet trays and utensils | Replaced in small batches | Business line of credit |
| Food and beverage orders | Used within days | Business line of credit |
| Pay for added cooks | Due every pay period | Working capital loan |
A lease may end with a buyout, and the lease's total, buyout included, can be set beside a loan's total before anything is signed. Plumbing the ice machine in counts as property work, outside this site.
A merchant cash advance works differently from all of these: it is not a loan, and a provider collects it as a share of each day's card sales.
Marquette County, MI restaurant counts, and a second location's equipment and training payroll
Marquette County, MI's 2023 County Business Patterns lists 57 full-service restaurant establishments and 46 limited-service ones; at 10 each, establishments with fewer than five employees made up 17.5% and 21.7% of the two counts.
ZIP Code Business Patterns, which files each establishment under its street address, shows ZIP 49855 with 33 full-service and 33 limited-service restaurant establishments in 2023.
For an existing restaurant adding a second location in Marquette, MI or nearby, the costs split in two. Signing the lease and changing the building fall on the property side, outside this site. Ranges, prep tables and smallwares can go on equipment financing, and the payroll for training new staff can go on a working capital loan.
In this invented case, six cooks train at the first location for 3 weekly payrolls of $4,180, or $12,540 in all (invented). Other food and drink trades are on the industries page.
A blog article follows a pizzeria, a cook line and a new lunch shift through three kinds of restaurant funding.
By Cloverbrook Capital Group ยท Updated
