Restaurant Finance That Is Easy To Acquire
filed in Credit card on Jul.30, 2010
Many times the most difficult part of running your own business is attaining financing to maintain and sustain gradual growth. This is even more true when you are in the market for restaurant finance. There is a misapprehension that restaurants are more apt to fail than any other business; a ten percent success rate is often noted.
The truth is that at the five-year mark restaurants have 40% success rates, nearly identical to types of businesses. Nevertheless, it can be difficult to attain working capital, especially from mainstream sources such as the local bank.
Restaurant loans can also be acquired from merchant services providers as a factoring contract. These providers have funding options that range from a few $1,000 right up to a quarter million dollars if needed. The entrepreneur is basically selling their future Visa/MasterCard revenues at a discount in order to get the cash that are necessary within days.
The business cash advance is repaid by way of a credit card receivables based agreement. A percentage of credit card sales are paid back based on a “Daily Capture Rate” that is worked out before acquiring the funds that means that during a bad business period the advance can still be paid without having to face repercussions.
When you run a restaurant it can be hard to predict when you will need to have additional funds available. Start up expenses can be larger than anticipated, and the first large mistake can be a “make or break” occurrence. Even if the business owner has impeccable credit, it can take months for a bank loan to be approved; in the meantime, business continues to be bad.
Credit Card Factoring options provide a much needed, speedy solution for restaurants in need of funding. Neither collateral nor years of financial statement are needed to be approved for restaurant loans when you work with a reliable financing company.
Since early 2008 Daniel Samoohi has assisted thousands of business owners in finding reputable providers in order to compare quotes for restaurant finance. By making providers compete with each other, Daniel also helps businesses in finding great deals for restaurant loans.