Disarray in the economy has sent a bunch of small business owners straight into a whole lot of credit challenges, many times at no-fault of their own. The reason could be clients failing to pay, or just not enough business caused by low incomes in the region. You will find new businesses that open in spite of the credit problems, though the majority of restaurant owners are not able to obtain cash for the small business. Well, a business cash advance may address these issues for small enterprises by providing the money which may be needed without having a good deal of emphasis on consumer credit.

How do you get a business cash advance just for your company?

Generally there isn’t very much required to acquire a cash advance, since this is usually a fairly easy to acquire source of capital. There are some details that might be needed depending on the service provider.

Getting qualified is fairly easy. All you’ve got to do is have 525 FICO or higher, provide a few months of merchant and traditional bank statements, and that’s it.

This is much less compared to what is actually required for acquiring a standard bank financing, or any other type of financing for that matter, and also you are going to have to offer some kind of security or business asset to be able to acquire the financing. One will certainly end up being under more serious scrutiny, typically having a 720 fico score required before you might be eligible for the loan product. The latest merchant cash advance provides you the preferred capital choice available to business owners these days.

As soon as you sign-up for the merchant cash advance, you will probably be given a determination right away with many providers, some simply requiring one day or so to process your application and provide a decision. Once you have an answer, you will probably have the financing within a handful of days. Having immediate funding like that, just who wants a time consuming business loan?

A Business cash advance offers the straightforward small business funding which you want whenever your costs are more than your spending budget or you have discovered a venture that is in your best interest to invest in as soon as possible. You really don’t need to wait several weeks for you to obtain the money which you want. Take a look at a business cash advance for your up coming financing need.

Banks are very apprehensive about loaning money to restaurants, mainly because so many of them don’t last more than the first year. It is true; getting past your first year can be a challenge. Most restaurant owners spend all of their money on opening the restaurant and don’t leave enough left over for marketing, upgrades or emergencies.

Having access to working capital can have a huge impact on the success of your restaurant. Many of the restaurants that failed last year would still be here today if they had had access to just enough cash to get them through.

If the banks aren’t going to loan them money, who is?

There is a business loan alternative that many restaurant owners have already taken advantage of. It is called a merchant cash advance (or merchant loan). Unlike a bank that turns down nearly 90% of small business loan applications; a merchant loan has an approval rate of 90% for most providers. This has opened the door for thousands of restaurant owners who though that they could never get funded.

Banks rely on good credit and collateral as the basis for lending money. With a merchant cash advance, all you need is a 6 month history of processing at least $2,500/mo in credit card sales. The more you process; the more you are eligible for.

The reason they are able to do this has a lot to do with how it is paid back. Rather than making out a check each month, a merchant loan uses your credit card processor to automatically deduct a small percentage from your daily credit card sales to pay it back. This automatic payback is effortless and has very little strain on your business. It is important for the advance provider not to advance you more than you can comfortably pay back. Your success is in their best interest as well.

What are the benefits for my restaurant?

You can use the money for anything you want. Other restaurants have used their advance for

• Advertising and marketing
• Kitchen upgrades
• Expanding their location
• Redesigning the dining area
• Getting caught up on bills

Other advantages include;

• High approval rate
• Easy application process
• Quick financing (usually in 7 days or less)
• Flexible payback structure
• 100% tax deductible
• Spend the money as you see fit

As you can see there are many advantages to getting a merchant cash advance for your restaurant. However they won’t help unless you use the money wisely. Only use the money if you are sure that it could help your business. Use the following link to learn more about how a merchant cash advance can help your restaurant.

Author: Christopher Ronk
Article Source: EzineArticles.com
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Your customers may opt to pay through various modes – it may be cash, credit cards or cash cards; even some of them may be your regular customers whom you will charge periodically. So, Best point of sale pos terminals vendors give enough options for collecting and processing payments in different modes. The restaurant software should also enable you to collect payments from customers whose records are saved in the main database of the best restaurant management software.

Under normal conditions, your customer will dine in your restaurant, walk up to the cash-counter or the payment processing systems console and pay using his cash/credit card or simple cash. Now, if the customer pays in cash, the best restaurant management software will open up the cash-drawer automatically the moment the cashier enters the cash details in the console. For credit/debit card processing, you will get your customer’s card swiped in the system and the amount will be automatically updated in the best restaurant management software.

All POS inventory system is equipped with adequate security features to prevent mal-practices. As you get various reports on the data collected in the POS inventory system , any discrepancy will be easily noticeable to you. The information of your customers’ credit or debit cards is completely encrypted through the Best point of sale pos terminals so that they can dine and enjoy in your restaurant freely. A number of Best point of sale pos terminals are also equipped with online payment gateways to complete transactions over the web from the POS inventory system console.

It is important to run your restaurant with an optimized system and offer the customer with a great dining experience. So, to remain in the business successfully, you need to have Best restaurant management software besides efficient workforce and adequate infrastructure. In the end, your restaurant software makes the difference and takes you towards success.

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Lenders will usually look at your gross annual sales and revenues, credit score, checking account balances, profitability, and length of time you’ve been in business. For newbies in the business world, expect to be asked intensively about your business plans.

Your history with credit card services is a main factor for lenders. Credit information they usually look for are personal credit card debt, personal loans, liquid assets, real estate holdings, tax returns, and personal financial statements. Your personal spending habits will also be an issue, including how you use credit card services and instalment debt. If you have a good track record of all of these, then you won’t have any problems with getting you business loan approved. But what if you have bad credit history? What alternatives do you have?

The answer is getting a business cash advance in place of a small business loan.

A business cash advance is the alterative option for business owners who need emergency funding. It is ideal for business owners subscribed to credit card services and/or charge cards. Monthly payment this type of business loan is done through batched credit card sales.

Approval for this type of small business loan takes a shorter amount of time and bad credit scores won’t be too much of an issue. The processing time for cash advance application is from 24 tp72 hours only. Some cash advance lenders can lend as much as $2500 to $300,000, depending on their evaluation.

Cash advance as a small business loan is very likely to get approved as long as you pass the basic requirements for the advance. First, you’re business should have been operational for at least a year. Your company should also at least have profits of $4000 in credit card processes per month.

The difference between a business cash advance and the usual small business loan are:

(1) A business cash advance does not require a detailed financial statement. Conventional business loans require 2-3 years worth of financial statements.

(2) Audited tax returns are not required for cash advances. Business loans from banks do.

(3) You only need to provide a guarantee against fraud or intervention.

(4) Application fees are not always required for this alternative business loan.

(5)No need for high credit scores. You only need to be subscribed to credit card services.

(6) Your collateral does not have to be all of your business assets.

(7) You can opt for a flexible monthly payment.

Cash advance as a business loan allows you to do almost anything for your business. You can pay taxes or debts, buy supplies, pay your employees, make repairs or remodelling, inventory, make new marketing and promotion materials, and expand your business establishment.

The idea behind cash advance repayment is not like the payment process for a small business loan. Repayment is made by automatically debiting an agreed percentage of your credit card sales every time you batch. There are no fixed payment schedules. You will only be able to pay when you’re customers pay.

Cash advance as a small business loan is very ideal for restaurant owners, retailers, medical clinics, and other new industries. Staying afloat for small business is harder, especially with the recession, and a cash advance is a quick solution for those emergency financial situations. After all, maintaining continuous cash flow for young establishments is difficult. With cash advance as an alternative business loan, you can get cash sooner and pay your loan easier.

Every business loan is a risk for both the lender and the borrower. A promising business gives you the best chances of having your business loan request granted. Lenders will usually look at your gross annual sales and revenues, credit score, checking account balances, profitability, and length of time you’ve been in business. For newbies in the business world, expect to be asked intensively about your business plans. Your history with credit card services is a main factor for lenders. Credit information they usually look for are personal credit card debt, personal loans, liquid assets, real estate holdings, tax returns, and personal financial statements. Your personal spending habits will also be an issue, including how you use credit card services and instalment debt. If you have a good track record of all of these, then you won’t have any problems with getting you business loan approved. But what if you have bad credit history? What alternatives do you have? The answer is getting a business cash advance in place of a small business loan. A business cash advance is the alterative option for business owners who need emergency funding. It is ideal for business owners subscribed to credit card services and/or charge cards. Monthly payment this type of business loan is done through batched credit card sales. Approval for this type of small business loan takes a shorter amount of time and bad credit scores won’t be too much of an issue. The processing time for cash advance application is from 24 tp72 hours only. Some cash advance lenders can lend as much as $2500 to $300,000, depending on their evaluation. Cash advance as a small business loan is very likely to get approved as long as you pass the basic requirements for the advance. First, you’re business should have been operational for at least a year. Your company should also at least have profits of $4000 in credit card processes per month. The difference between a business cash advance and the usual small business loan are: (1) A business cash advance does not require a detailed financial statement. Conventional business loans require 2-3 years worth of financial statements. (2) Audited tax returns are not required for cash advances. Business loans from banks do. (3) You only need to provide a guarantee against fraud or intervention. (4) Application fees are not always required for this alternative business loan. (5)No need for high credit scores. You only need to be subscribed to credit card services. (6) Your collateral does not have to be all of your business assets. (7) You can opt for a flexible monthly payment. Cash advance as a business loan allows you to do almost anything for your business. You can pay taxes or debts, buy supplies, pay your employees, make repairs or remodelling, inventory, make new marketing and promotion materials, and expand your business establishment. The idea behind cash advance repayment is not like the payment process for a small business loan. Repayment is made by automatically debiting an agreed percentage of your credit card sales every time you batch. There are no fixed payment schedules. You will only be able to pay when you’re customers pay. Cash advance as a small business loan is very ideal for restaurant owners, retailers, medical clinics, and other new industries. Staying afloat for small business is harder, especially with the recession, and a cash advance is a quick solution for those emergency financial situations. After all, maintaining continuous cash flow for young establishments is difficult. With cash advance as an alternative business loan, you can get cash sooner and pay your loan easier.

Nevertheless, as the owner of a small business that doesn’t sell cars, you may be looking for your own cash infusion. Though there may not be a government-created program equivalent to cash for clunkers, designed to help other retail and/or service-oriented business owners, there is still a way for merchants to get funds for their businesses – merchant loans.

Merchant loans lenders offer various programs designed for small business owners located in both the United States and Canada. Starter merchant cash advance programs allow merchants who have been declined in the past to be advanced a small amount and a larger amount once the initial advance is repaid. The standard merchant loan program offers up to $500,000 to qualified small business owners, and the premium advance program provides the best rates and flexible loan terms for merchants who meet special qualifications.

Some merchant loan lenders even offer new restaurant loan programs, in which restaurant owners do not need to have a six-month track record in order to receive funds. Merchants who qualify for this program can get up to $500,000 for their restaurants within the first week of the restaurants’ openings.

Basic merchant loan requirements include:

· Merchant must have owned business for at least six months
· Business must process at least $3,500 in monthly credit card sales
· Business must have at least one year remaining on lease
· Merchant may not have unresolved bankruptcies

Get a free online quote today and find out how much money a merchant lender can infuse into your small business.

Author: Gaston Castro
Article Source: EzineArticles.com
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The truth is that at the five-year mark restaurants have 40% success rates, virtually matching to most other types of businesses. Nevertheless, it can be hard to acquire financing, especially from mainstream sources such as the local bank lender.

Restaurant loans can also be acquired from credit card processing vendors as a factoring agreement. These vendors give funding arrangements that range from a few 1,000 dollars all the way to 250,000 dollars if needed. The business owner is basically selling their future Visa/MasterCard receivables at a discount in order to get the funds they need right now.

The business cash advance is repaid through a credit card receivables based contract. A percentage of credit card receipts are paid back based on a “Daily Capture Rate” that is worked out prior to acquiring the cash which means that during a bad business stretch of time the advance can still be paid without facing delinquency fees.

When you operate a restaurant it can be hard to predict when you will need to have additional funds available. Start up capital can be larger than expected, and the first large mistake can be a “make or break” occurrence. Even if the business owner has excellent credit, it can take a long period of time for a bank loan to be approved; in the meantime, business continues to hurt.

Credit Card Factoring options provide a much needed, quick solution for restaurants in need of cash. Neither collateral nor years of documentation are necessary to be considered for restaurant loans when you work with a proven financing company.

Author: Daniel Samoohi
Article Source: EzineArticles.com
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• Equipment Loans- This type of loan is available through various commercial loan brokers and some commercial mortgage companies and allows a loan to be made against your existing equipment that you may own as a part of doing business such as kitchen equipment, furniture, etc. Remember though, a lien will be placed against this property until the loan is paid off.
• Commercial Mortgage-If you own the building that you currently do business out of this may be a good option for you, especially if the balance on your existing mortgage is low, or the building is free and clear. Even with tough credit, you may be able to get a substantial loan against the property at fairly reasonable rates, especially compared to other available sources.
• Merchant Cash Advance- This “advance” is pitched primarily to restaurant owners and is secured against their future credit card receipts, even if credit is difficult. The advantage here is that normally this type of “cash advance” can be funded quickly, usually within 7 days. The disadvantages are many, including high factor, or interest rates, high fees and the requirement to change merchant credit card processors as a condition of receiving the loan. Because it is an “advance” against receivables and not technically a loan, regulations may allow rates as high as 50% or more on a short term basis.
• Credit Card Receivable Financing – This is also a quick funding, low documentation loan with factor rates that are 50-80% less than a merchant cash advance with no upfront fees or requirements to switch processors. Because it is a true loan and not an advance, a business will not be subjected to rates that are higher than state usury laws allow. Loan amounts are up to $500,000, even with credit scores as low as 550.

There are options out there for restaurant financing, and some of them can be relatively affordable. The best option is always going to be your local SBA backed loan. However, the reality of today’s environment is that not many of these types of low-rate government backed loans are actually getting approved. That is why it is important to carefully consider your options before moving forward.

Author: Neal Coxworth
Article Source: EzineArticles.com
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This has left restaurant owners in a real predicament as they fight to regain much of the working capital that they lost in the economic downturn. Even healthy establishments have seen their lines cut due the banking collapse, and this has forced restaurant owners to seek out other sources of financing such as secured equipment loans, commercial mortgages, etc.

However, these types of loans are different and not really catering to the needs of restaurant owners because of the fact that restaurants need a steady infusion of working capital, even when business is slow, to keep deliveries flowing through their back door. Without it, the business will be forced to close, even if traffic is healthy. Because mortgages and secured business loans take a lot of time to process, underwrite, and decision, they have not been able to fill the financing gap that currently exists.

This has left business owners in the unsavory position of having to accept cash advances from their credit card processing company. These high rate, unregulated advances are quick and feature low documentation. However, they often comes with many strings attached such as the requirement to switch processors, buy equipment and pay large upfront fees. Added to this is the fact that the interest rates on these advances can often exceed 50% and may change at any time during the repayment period

Luckily, a better way has entered the market in the form of a new, regulated business loan called credit card receivable financing, that is as quick and easy as a cash advance without all the disturbing requirements such as buying equipment and switching processors. On top of this, the rates are normally 50-80% lower than a merchant cash advance with no upfront fees.

It’s time the restaurant business owners had a real, cost effective option when it comes to obtaining restaurant loans for their establishments. Today’s economy demands creative solutions to the capital intensive needs of business, and this new option that is on the market that fills a gap that major banks and the SBA have left.

Author: Neal Coxworth
Article Source: EzineArticles.com
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You as a restaurant owner have at one time or another been faced with applying for a restaurant loan, possibly getting your loan request denied and faced rejection unless you had money to do your own self restaurant financing.

Getting startup capital to open a restaurant is much more challenging then it is for other non food businesses or retail businesses. Banks do not like doing restaurant financing period because of the high failure rate associated with restaurant businesses.

The nice thing with the internet and article directories is that it gives you immediate access to great loan information and options. You can receive great advice to help you with your restaurant business, if you sort out the fluff from the real meaty info with substance. The information is there online for free for you to find and use to your advantage.

How Does The Business Cash Advance Differ From Other Types Of Financing

* It is not a business loan or cannot be called a business loan because there is not an interest rate attached to the loan or a monthly fixed payment you have to pay every month. Since it is not a small business loan it does not get reported by the finance company that provides financing to you. If you ever need a quick easy to apply unsecured business loan or business line of credit that not require you to provide collateral this cash advance product is your solution.

* If you ever need to take out a loan for your restaurant and want to legally keep it 100% totally private, prevent it from showing up in the 3 credit bureaus, prevent other creditors from knowing you applied for financing and received it, the business cash advance or known also as the merchant cash advance is your new solution to how to do it legally any time you need a loan and wish total anonymity.

* Does not affect your credit score since Experian, Transunion, Equifax, do not know when you take out a business cash advance for your business

* You do not have to worry about rigid payments every month like you do with a bank

* Your approval process is in 48hrs not weeks

* You can get funded in about 10-14 days

* You do not have to put up collateral like you do at a bank

* You do not have to provide tax returns

* You do not have to provide financial statements

* No long application like you will get at your local bank

* If you are opening a restaurant and you need more financing certain companies provide financing to new start up restaurant owners who are ready to open in a few days and need extra working capital, this is not even possible with a local banker.

* If you just opened a restaurant and need more cash flow financing to help you make your leasing payments for a few months with your casual dining business, it is possible and not once again with your local banker.

* Payments are made automatically from your credit card merchant account through a percentage of each credit card transaction your business makes, does not require you to remember one more payment you have to make reducing stress and worries about making late payments and paying a penalty.

* It allows you tap into a “Hidden Asset” that your restaurant has… Your local bank does not look at your credit card receivable transactions as an asset and will not lend you money against it. This product If used correctly it can be a very powerful alternative funding source when you need financing that is very quick and easy to get.

* Restaurant owners may be in need of a no hassle – quick money source to working capital financing for supplies, equipment, staff payroll, advertising, when they need it and local banks can not compete or provide quick funding due to long drawn out application process and the business cash advance is a super fast option which is free of heavy documentation requirements and long application process.

How Not Having Or Limiting The Use Of A Merchant Credit Card Account Can Hurt You

If you do not have a merchant account, you are locking yourself out of a very quick money source for any financial need that may arise for you.

Many business owners do not like using their credit card machine because it tracks most of their transactions and would prefer cash transactions since there is not a record of this. You see your credit card machine is a tool a resource to money when you need it quickly.

By not having a credit card machine or by limiting the use of it, you are only hurting yourself when you need this source of financing, since if the transactions are to low you will not qualify for this business cash advance when you need it. Try to get your credit card transaction volume up to a minimum of $3k-$5k per month which means when you need additional quick working capital financing you will be able to get between $2,500 – $6,000 in 10-14 days.

Author: Edwin De Leon
Article Source: EzineArticles.com
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Why You Will Find It Difficult To Get A Loan

Unfortunately bank loan officers do not like to do restaurant financing! This year of 2008 is a very tough year, foreclosure rates the highest ever in the history of the United States, a credit crunch due to the mortgage crisis, lenders cherry picking their loans, even denying borrowers with good credit.

So as if the food and hospitality industry was not already difficult for getting restaurant loans, it is much more harder to get loans then ever before due to the recession that is happening currently around major cities in the united states, gas prices going off the roof creating a domino effect in many many industries, consumers not spending as much, going out less due to super high gas prices.

Restaurant failure is the main reason why bankers are Leary of lending money to a new start up restaurants, if the borrower applicant does not have a proven track record in the food and hospitality business.

Success for food service businesses is viewed by bankers as minimal. Their hesitation is due to higher failure rates in the industry for new restaurant owners with no experience opening a restaurant. Unless you have enough collateral to make the loan risk free, banks will usually not approve your loan. This belief is not well founded, since the data is skewed, therefore, it is not accurate and hurts you when you apply for a loan.

Traditional money lending institutions are Leary of lending money to a new restaurant, if a the borrower applicant does not have a proven track record in the food and hospitality business.

What Can You Do To Increase Your Chances Of Success With Your Restaurant

Restaurant Consultants — Set aside some money from your working capital to consult with one. They will help maximize your chances for restaurant success and minimize your chances for restaurant failure; this is the main reason to to speak to a restaurant consultant.

Restaurant Training — Seek out those companies that provide restaurant training

Restaurant Marketing — Become an expert in restaurant marketing, consult with someone who will help you create a great restaurant marketing plan. Implement a moving targets and birthday marketing campaign to generate immediate cash for your restaurant, which you can find out more info with the author of this article.

Restaurant Management Training — Seek a company that will train your restaurant manager.

Restaurant Accountants — Seek out CPA accountants that specialize with restaurant accounting software and restaurant accounting systems.

Restaurant Floor Plan – Warning, pay attention to how you layout the front, back, kitchen area! Could cause to lose profits if you do implement a good efficient cost effective floor plan.

What Are Your Restaurant Funding Options & Sources

Soliciting partners

* Selling stock
* Venture capital
* SBA
* Loans from relatives
Insurance policies cash values
* Credit from food suppliers
* Personal savings
Collateralized loans from your personal assets
* Credit from equipment suppliers

Up till now if you are having problems getting financing for your existing restaurant, your options were limited. There is a product called the business cash advance or merchant cash advance that is a possible solution to you when you find yourself being turned down for restaurant funding.

Copyright@2008

Author: Edwin De Leon
Article Source: EzineArticles.com
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