Borrowing Money Using Your Quota Liquor License as Collateral

Posted on June 18, 2024June 18, 2024 by admin

Updated: June 18, 2024

Running a bar, nightclub, restaurant or liquor store in Florida is a costly undertaking. From time to time, you will need additional funds to market your business or even stock various alcoholic beverages for the customers.
This is where borrowing money using your Florida quota liquor license comes in. The financing option will help you secure quick funding to run your venture. You can use the loan for business expansion or operational improvement.
Learn how this financing option works from Beverage License Specialists.

Understanding the Value of a Quota License

The Florida quota license isn’t just a permit to let liquor businesses operate. It is an asset you can potentially sell for hundreds of thousands or more. This permit is valuable because of one main reason —there is a limited number available in each Florida county.

Moreover, the permit is transferable from one person to another. For this reason, many business people need to purchase one from a license holder who no longer has a need for it. Not surprisingly, Florida lenders consider the license-worthy collateral.

They can lend you money based on the value of the license.

What Lenders Take into Consideration When Determining Eligibility for a Lien Against a Liquor License

Lenders consider many things when determining eligibility for a loan against a liquor license. The first thing they consider is the current value of your liquor license. This value enables creditors to determine the amount you are eligible to receive as a loan.

Moreover, the license value helps lenders match loan terms and interest rates to the value of your collateral. Other factors lenders consider when determining eligibility for a lien on your liquor license include:

• The right process to place a lien on your license. Before extending credit, your lender or lender’s attorney will review the due diligence process for placing a lien on your liquor license. This review helps lenders identify potential risks associated with lending against a particular liquor license.
• Determining if your license is able to be liened. Lenders and their attorneys will verify that your license meets their credit requirements. The creditors will only extend credit to you if your liquor license can be used as collateral.

Determining Factors if a Liquor License is Lienable

Two factors determine if your Florida liquor license is lienable. One, quota liquor licenses have limited availability. The state issues a limited number, meaning that not all liquor will be able to acquire one.

In the bargain, quota liquor licenses are transferable. One entity can transfer the license to another. Thanks to transferability, lenders may have the opportunity to sell the license if borrowers default.

Beverage License Specialists are Here to Help If You Need a Quota Liquor License for Your Business

Acquiring a Florida Quota Liquor License can be a daunting undertaking. Nonetheless, with an expert on your side, that shouldn’t be an issue. They’ll help you circumvent the difficulties till you secure a license.
When it comes to such matters, Beverage License Specialists take the top slot. We have helped Florida’s beverage entrepreneurs secure various types of liquor licenses for over 34 years. With such experience, we understand the intricacies of the Florida licensing system.

Contact us at 954-369-5858 to learn more about the Florida Quota Liquor License with Beverage License Specialists. 

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