Start a Restaurant

Sometimes the most difficult part of running your own business is attaining financing to maintain and sustain steady growth. This is even true when you are looking for restaurant finance. There is a misconception that restaurants are more apt to fail than any other type of work; a 10% success rate is often quoted.

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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If there’s one thing restaurant owners can learn from Wolfgang Puck, it’s never to give up. Their journeys to success may not be as extreme as the famous chef/entrepreneur, who began as a cooking apprentice in Austria at the age of 14, then moved to France four years later and “…wrote letter after letter to all the two- and three-star restaurants,” as he told Inc.com, until he was finally hired. For some, it may be as simple as letting go of age-old ideas and traditions and applying for a merchant cash advance when business loans don’t come through. 

The circumstances and stories will differ as greatly as the types of restaurants these small business owners own, but the decision to work hard and adapt to change in order to succeed is what’s important.

If a lack of business funding is the problem, a business cash advance can be the solution. Many merchants that don’t qualify for bank loans do qualify for restaurant cash advances. Virtually, any restaurant owner who has owned his/her business for at least six months, processes a minimum of $3,500 in monthly credit card sales, has no unresolved bankruptcies and has at least one year remaining on his/her restaurant’s lease will qualify for a restaurant cash advance of up to $500,000.
 
Merchants who choose to take advantage of a merchant cash advance for their restaurants have the freedom to use the funds for equipment upgrades, purchases of inventory, expansion, advertising, or anything else they can think of that can potentially improve their businesses. Then, they can renew their funds every three to four months.
 
Choosing a restaurant advance may be the decision that takes your business from good to great. It may be the decision that keeps you from having to close your doors. Get a free online quote today and find out how much you can receive for your restaurant.

Author: Gaston Castro
Article Source: EzineArticles.com
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