Start a Restaurant

Starting a restaurant obviously entails lots of work, research and most importantly, dedication. It may be necessary to put a lot of time and effort into a new restaurant, but if done correctly, the results will be well worth it.

You are well aware of these facts, and you are determined to create and run the restaurant that you have dreamed of since you were a child: The one that on the outside, resembles a French cottage, and on the inside boasts of authentic French décor and a menu of tasty French comfort foods, creating an exotic yet homey atmosphere for your patrons.

Still, another vital component of starting a restaurant is of course, money. So where are you going to go to find the money that you need to build this restaurant of your dreams? Why not get a restaurant loan?

What is a Restaurant Loan?

A restaurant loan is an unsecured loan that can be used for startup restaurants as well as restaurants that are already in existence. The restaurant loan is given as an advance against the restaurant’s future credit card sales. This means, new restaurant owners can get the cash they need to finance startup costs now, and pay later, without having to make scheduled payments every month. Instead of the traditional fixed monthly payments, restaurant loans are repaid little by little as customers make credit card purchases.

You don’t need any collateral to secure the loan. Your restaurant’s future credit card sales are collateral enough for restaurant loan providers. Your payments go with the flow of your business and therefore a borrower does not feel such a sting when it’s time for loan repayment.

Finding startup cash can be a difficult process. The availability of restaurant loans can make this process much easier, not to mention faster and often more convenient.

Author: Gaston Castro
Article Source: EzineArticles.com
Humorous photo captions

Many people have heard the startling myth that nine out of 10 restaurants fail within their first year of opening. Hearing this can make anyone who is contemplating going into the restaurant industry think twice.

But according to H.G. Parsa, associate professor in Ohio State University’s Hospitality Management program, as quoted in a Business Week article, this is not true.

After researching, he found that realistically, 3 out of 5 restaurants close or change ownership within their first year of business.

According to the article, Parsa also identified “…lack of sufficient startup capital as one of the major elements that contribute to a restaurant’s failure,” leading him to believe that many banks won’t lend to restaurants because they may believe those mythical statistics. The article states, “Typically, the ones that do [lend] require would-be restaurateurs to pay sky-high interest rates or put up significant collateral…”

But even if banks are wary of lending to restaurant owners, especially new ones, for the reasons mentioned above, there is another option; restaurant loans.

Restaurant loans can be used for startup restaurants, or for restaurants that have been in existence for any length of time. The loans are unsecured, so there is no collateral required, nor are there fixed monthly payments. Restaurant loan payments are made via the restaurants credit card sales. Once a restaurant owner receives a restaurant loan, whenever customers use their debit or credit cards to pay for their food or drinks, a small percentage from the sale goes to repay the restaurant loan. This allows the loan repayments to go with the flow of business.

Another benefit of the restaurant loan is borrowers receive the opportunity to renew their restaurant loan once 60 percent of their previous balance has been paid. Therefore a new restaurant can get a loan and the money funded into the account of his/her choice within the first week of the restaurant’s opening. But it doesn’t stop there. These renewal opportunities allow restaurant owners to have access to an ongoing source of business financing, as they can renew their loans as many times as they like.

Increase your chances of restaurant success by getting a restaurant loan, and having enough money to finance everything that a successful restaurant needs.

Author: Gaston Castro
Article Source: EzineArticles.com
Provided by: Humorous photo captions