Start a Restaurant

Perkins Restaurant & Bakery announced today that it has been listed on the U.S. Small Business Administration’s (SBA) Franchise Registry, paving the way for a more streamlined application process and expedient loan processing time for franchisees.

View full post on Restaurant And Bar Stories

Individuals looking for restaurant investment are usually referring to restaurant investors. Since most individuals looking to start a new restaurant business do not have the financial means to do so, investors can contribute large sums of capital to get the business started. Silent investors do not contribute to the business’ financial decisions, but they may ask for a certain percentage of the revenue. Investors can also be partners, meaning they do play a role in the business’s financial decisions along with obtaining a portion of the profits. When looking to find restaurant investors, many financial websites provide forums or directories that allow individuals to connect to potential investors.

Most partner investors are experienced in the restaurant business. Therefore, they can provide vital information and advice regarding the new business, along with other financial services. Some investors may have experience in accounting, planning, and obtaining funds.

When deciding on a partner investor, it’s best to make sure the owner and the investor agree with the business plans before they are written out and before any funds are invested. While an investor or two can provide the capital and expertise needed to start a new restaurant, too many investors can lead to strong differences in opinion of how the business should be run. If partners cannot agree or compromise on a business plan, it’s best to find a new investor.

Many individuals also look to friends and family members who have the means of financing a new business. These people can provide the same knowledge and capital as other investors, but they can also bring about the same problems.

Find restaurant lender generally refers to a business owner researching and comparing different loan providers in order to purchase a new restaurant. While commercial banks, the Small Business Administration, and independent financial companies usually do not provide loans for the specific use of purchasing a restaurant, they do offer general-purpose loans that can be used for nearly any business expense or activity. However, many companies do specialize in restaurant lending, and they may be able to offer better loan terms.

The best way to find a restaurant lender is to look to the person selling the restaurant. Many times, the seller is willing to finance the purchase, especially if the business is profitable. Before settling on this type of financing, it’s best to go to a lawyer to write out a formal contract that lists all terms and agreements. Most other lenders require contracts, so asking the seller to do this is not unusual. When buying a franchise, individuals can look to the franchiser for restaurant financing. A loan from a franchiser can be different than borrowing from an independent seller, as the franchise may already have set loan terms.

Another way to find a restaurant lender is to conduct online research. Many non-traditional lenders deal exclusively with restaurant loans. Their websites give detailed information on loans, such as requirements and typical loan amounts, interest rates, and repayment plans. Some of these lenders also offer ways to find restaurants available for sale.

Author: Brynn Harveys
Article Source: EzineArticles.com
Panasonic Lumix G2

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
Hybrid and Electric Cars

The global financial crisis has made it quite difficult for companies, especially small businesses, to get business loans. Ironically, it is also in this situation that smaller companies often need additional capital infusion to boost income. You may need to get small business loans to acquire a better business location, construct a new building, renovate your premises, pay for new equipment, fixtures or furniture or increase inventory and working capital.

Most Small Business Loans Require Collateral

To get business loans, even small business loans, is a major challenge.

First you need to identify which among the many types of small business loans you need. Small business loans ranging from $5,000.00 to $35,000.00 are called micro loans. For larger needs, such as for the acquisition of land, buildings and other major fixed assets, development financing is what you should find. There are also import export loans as well as franchise financing. Do your research to find out if you are qualified for small business loans guaranteed by the U.S. Small Business Administration or SBA.

Any of these small business loans will require extensive preparations and paperwork. As a small business owner, you will need to prove your credit worthiness through a personal credit history report. Lenders will also require a business plan which includes your credentials as the business owner, your company financial statements, business assets and an analysis of your market. All of these should be packaged in a professional loan proposal which presents how the loaned amount will be used to strengthen the business and how you intend to repay the loan. Most of all, you need to present your loan collateral – the assets you will put up to secure the loan.  

Quick and Easy Small Business Loans with No Collateral

For smaller acquisitions or day to day business needs, there is a way for entrepreneurs to get small business loans easily and quickly with no collateral. This is through merchant services.

Merchant services provide credit card services to businesses. This enables them to accept and process payments through credit cards or debit cards either through face to face purchases, online transactions, or even by phone or fax. Merchant service providers supply terminal equipment for card swiping, as well as the necessary software and high speed IP solutions.

Most businesses need credit card services since consumers routinely pay for goods and services through credit cards and debit cards these days. If your business has not taken this step yet, you may have been missing out on more than half of your income potential.

These same merchant services also provide the solution for your small business loans. Collateral-free loans can be availed of through their cash advances, with the loan amount computation based on the monthly credit card revenue your business generates. Credit card sales requirements may be as low as $3,000.00 a month. You will not be asked for collateral since your future revenue is your collateral.  

The best types of merchant cash advances do not require fixed monthly payments nor do they impose deadlines on loan payment. A certain percentage is instead deducted automatically from your credit card revenue each month to go towards loan payment. This way, you never have to worry about loan amortization.

Once your cash advance has been fully paid, you may apply for another one. It is like having a revolving credit line. Make sure that you compare the terms of several merchant service providers, though, and read the fine print on contracts. There are so many merchant service providers competing for your business that you’ll surely find one that fits your needs.

For many years restaurants have gotten a bad rap when it comes to perceived risk.  Business experts and people in general are prone to citing “The High Failure Rate” of restaurants as a reason not to invest in or start restaurants.  Most of us are so use to hearing such talk we simply accept it as truth.  If we were to ask those who claim that restaurants have a higher failure rate than other small businesses to provide a references for their claim, they couldn’t.  There aren’t any credible research studies to support this myth.

I recently published an article outlining how anyone can dramatically improve their odds of success at starting a restaurant business.   The same day that the article was published a reader left a great comment, which not surprisingly mentioned the high failure rate of restaurants.    For the benefit of aspiring restaurateurs, restaurant investors, and the restaurant industry, it’s time to set the record straight.

There is no meaningful difference in the failure rate of restaurant start-ups and small business start-ups in general.  According to the Small Business Administration about 44 percent of small businesses are still operating after four years.  Similarly, according to a 2007 study conducted at Ohio State University, 41 percent of restaurants were still operating three years after launch.

As someone who has owned and operated a restaurant in a major city, the enjoyment and social aspects of being a restaurant owner fall just below rock star, local celebrity, and city mayor.  A popular restaurant allows the owner to be at the center of community events.  More importantly, if restaurant owners avoids the trap of trying to “Do-it-All” themselves, they can also enjoy a well balanced lifestyle.

The classic nightmare restaurant ownership scenario of long frantic days is the same for any entrepreneur,  who does not graduates from working in his business to working on his business.  Moreover, if restaurants were failing at the staggering 90% rate that some quote, it is unlikely that the restaurant industry would have been growing at double digit rates prior to the current recession.  

Author: Shed Wallace
Article Source: EzineArticles.com
Provided by: Credit card currency-exchange fees