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Years before I got into the merchant cash advance industry I managed a restaurant. I have to say that managing a restaurant can be pretty stressful. It is very much a balancing act between offering good food and service and making a profit. Profit margins are very slim, and if you cut back on quality, the customers know it. That doesn’t give you much room to grow.

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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This article is primarily directed toward people who own, or are considering getting into the restaurant business. I myself used to own a restaurant several years ago. It is tough work I know, but it can be very lucrative if you work hard, make wise decisions and with a little luck.

So often, we get so caught up in the day to day struggle that we forget to step back and take a look at the big picture. Think for a moment of what you could do if you had an extra 10, 20 or 50 thousand dollars to invest into your business. What would you do with the money? I don’t know about you, but I can think of many things that I would use the money for;

• Remodel the dining room
• Remodel the kitchen
• Expand the seating area
• Purchase new equipment
• Spend money on advertising
• Buy out a business partner
• Open a new location

These are just a few ideas. I am sure that you can come up with a few of your own ideas.

I tried to get a loan but I got turned down because of bad credit

You are not alone. Believe me; this economy has wreaked havoc on many business owners credit. To make matters worse; the banks are barely loaning money to anyone, regardless of their credit history. If you credit has taken a few hit over the past few months; you can pretty much kiss the idea of getting a business loan goodbye.

Thankfully there is something called a business cash advance

A business cash advance (also called a merchant cash advance or credit card advance) is a business loan alternative that has been proven to be extremely beneficial to restaurant owners. The cash advance is based upon your sales history instead of your credit history. If your restaurant is sustainable and you do a consistent business; then chances are you will qualify for a business cash advance.

Thousands of restaurant owners all over the country have used this type of funding, and 70% of them come back for another. If you invest your money wisely, you will have it paid off with a minimal amount of strain on your business. Once it is paid off, you will reap the benefits of your investment for years to come.

I invite you to learn more about how a BUSINESS CASH ADVANCE can help your business. While you are there you can use the advance calculator to see how much your restaurant qualifies for, or sign up for a free quote.

Author: Christopher Ronk
Article Source: EzineArticles.com
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