The Situation
The owner had been running a successful BBQ operation in Texas for two years. The first location was generating solid revenue, and the data supported a second location — foot traffic counts, local competitor analysis, and a signed commercial lease all pointed the same direction. The owner had cash for a down payment but needed $180,000 to cover the buildout, equipment, and first three months of operating overhead for the new spot.
The plan was solid. The credit profile was clean. But the execution required speed — the lease had a start date that couldn't slip, and the window for ordering commercial kitchen equipment at the projected cost was closing.
Why the Bank Wasn't Going to Work
The bank's rule was explicit: 24 months of operating history at the current location before they would consider a term loan for expansion. The owner had 23 months. One month short. That's all it took — not creditworthiness, not cash flow strength, not the lease or the foot traffic data. A calendar.
The second issue: commercial real estate lenders want personal guarantees on anything attached to real property. The equipment in the new location would have been covered by the loan, which meant the owner's personal guarantee would have attached to it. They had already been through one restaurant venture 6 years ago and had no intention of risking their current home equity on a second location buildout.
The bank's alternative — a working capital loan at 9–11% on a 24-month note — would have required the same personal guarantee and a 6-month application process.
How We Structured It
The first step was finding the right product for the timeline. A standard commercial term loan would have taken 3–4 weeks minimum. An SBA 7(a) was off the table for the same reason the bank was — the 24-month rule. The structure that fit was a short-term commercial term loan with a 36-month amortization, no personal guarantee required.
We matched the application to a lender that uses revenue and lease performance as the primary underwriting signal, rather than time-in-business minimums. The 23-month operating history was documented and supplemented with point-of-sale revenue data showing consistent growth trajectory.
The terms: 36-month amortization at a fixed rate, funded in 4 days from application to closing. No personal guarantee on the equipment or the leasehold improvement component. Monthly payments were structured to align with the first location's strong cash flow cycles, with a 6-month interest-only period at the start to give the second location time to ramp.
The second location hit break-even in month 4 — exactly as projected.
The Outcome
The second location opened on schedule. The $180,000 funded in 4 days from the day the application was submitted.
- 4 days from application to funded
- 36-month amortization, no personal guarantee
- Break-even reached in month 4, as projected
- Second location now running at 90% of first location's volume at the same point in its first year
The first location continued performing as expected throughout the opening period. The owner has since used the second location's first-year performance data to refinance the original equipment loan on the first location at a lower rate.