Bars and restaurants will usually have the highest failure rate among new businesses. Traditional banks have discovered that an infallible strategy for avoiding such commercial loan failures is to avoid making these kinds of loans in the first place. Elite Commercial Lending believes that a significant portion of the failure rate is directly due to the commercial borrower being forced into short-term financing when long-term financing is essential.

Because of added potential for business risk with bars and restaurants, it is not unusual to find commercial lenders imposing higher minimum credit score requirements for these properties in comparison to other commercial properties. Such lenders are simply treating a bar/restaurant owner's credit score as an alternative form of collateral.

Elite Commercial Lending believes that one of the primary underlying reasons for a high failure rate among bars and restaurants is directly due to the commercial borrower being forced into short-term financing when long-term financing is essential to the health of the business investment. Businesses should not be financed with short-term funds. It is essential to obtain long-term financing of at least 15-20 years (and longer is even better).