Start a Restaurant

There are many sources in which restaurant owners could turn to in search of restaurant funds. All of these funding methods have both advantages and drawbacks. Therefore, it is up to restaurant owners to evaluate their individual businesses, and determine which funding options best suit them.

Traditional Bank Loan

Explanation

A traditional bank loan is a business loan that a restaurant owner can receive through a bank. The money must be repaid over a certain period of time. Many banks offer business loans to small business owners who meet specific requirements, some of these loans are even backed by the Small Business Administration (SBA).

Benefits

o SBA loans available
o Low interest rates

Pitfalls

o Strict, often hard-to-meet requirements
o Long waiting/processing periods

Restaurant Loan (Merchant Cash Advance)

Explanation

Merchant cash advance providers advance restaurant owners up to $500,000. They utilize credit card factoring, allowing the restaurant owner to repay the advance through a small percentage of his/her business’s future credit card sales.

Benefits

o Up to $500,000 in business funds
o Minimal requirements
o Unsecured
o Excellent credit not required
o Flexible repayment procedure
o Renewable
o 7-10 day funding

Pitfalls

o More expensive than other methods
o Not suitable for restaurant owners who do not process credit card sales

Personal (Family, Friends, Savings, etc.)

Explanation

Money accumulated in savings accounts as well as money borrowed from or donated by friends and family can be used to fund a restaurant.

Benefits

o If taking money from your own savings, it does not have to be paid back
o No stringent requirements

Pitfalls

o May leave you with little to no money for emergencies
o Can potentially ruin and/or strain relationships

If after evaluating your restaurant, you realize that a merchant cash advance is your best option, you can get a free online quote and apply online.

Author: Gaston Castro
Article Source: EzineArticles.com
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On October 31, haunted houses will occupy every corner, jack-o-lanterns will smile devilishly and monsters, witches, goblins and ghosts will lurk in the darkness of the night. Nevertheless, none of these things will bother you, because you’re dealing with something more frightening than all of the terrors of Halloween. You own a restaurant and you don’t have access to the funds you need to grow and expand your business.

You don’t want your loyal customers to know of the financial difficulties that plague your business, so you wear a mask, like the children who will soon be eagerly walking from house to house, anticipating what types of candies will fall into their bags next. However, unlike these children, you don’t take your mask off at the end of the night. It stays on until you’re finally able to secure the business cash you need, or, your business outgrows itself and begins to fall apart right before your eyes – and at the rate you’ve been going, you’re thinking it might be the latter.

But there is another option, a business financing method that can save your restaurant from the doom you once thought was inevitable – the restaurant loan.

A restaurant loan is a merchant cash advance for restaurant owners. It allows restaurant owners to use their daily credit card sales as a means of securing up to $500,000 in business funds. Providers will review your business’s current monthly credit card sales and based on those numbers, they can advance you cash against your business’s future credit card sales.

You can use these funds to expand your restaurant in order to keep up with a growing clientele and to reach out to additional customers. In fact, there are no restrictions on how restaurant loans can be used, so you can use the cash however you choose.

Restaurant loan applications can be approved in 48 hours and funded in as little as five business days after approval. Get a free online quote today, so by the time Halloween comes around, the only mask you’ll be wearing will be a part of your costume.

Author: Gaston Castro
Article Source: EzineArticles.com
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