New Ways to Get Restaurant Finance
One of the riskiest business ideas is culinary
entrepreneurship, which makes it difficult for a budding
restaurateur to obtain financing especially when starting up or when
improvements are needed. The business owner would need restaurant
finance, and may look at taking out a loan from a conventional bank.
However, this process may take a long time, as most banks take
weeks, even months, considering a loan. Considering, because there
is no guarantee that a loan application will be approved. During
this waiting period, the restaurant business could fail.
In recent times, financial experts have developed new kinds of loans that can allow a business owner to obtain financing through fast business loans or cash advances. Financial agreements such as these are categorized under credit card factoring. This means that the financial institution will provide you with funds in return for a percentage of your possible revenues from credit card transactions in the future. This kind of business loan is favoured by many restaurant business owners because an application could be approved within 24 to 48 hours, and the restaurant finance will be in your account in less than 10 working days.
Fast business loans such as credit card factoring do not require collateral because the credit program is strictly based on your future revenues. The payment schedules are tied to the restaurant's actual sales, so you do not require extensive bookkeeping to be able to keep up with a particular payment amount set. There is only one condition--the business owner should stick to the agreement that was predetermined during the loan processing, otherwise, he will be held accountable against repayments.
A lot of restaurant business owners, especially novices, cannot meet the qualifications set by conventional bank loans. This does not mean that the business owner is not reliable or has a bad credit rating. Most banks look at the stability of a business, as well as excellent business credit history that can only be established with time. This is why there is an increasing number of entrepreneurs who choose to obtain restaurant finance from business and merchant cash advances.
The recent economic crush made it so much more difficult for restaurant owners to muster up finances for their operations. Factoring arrangements are increasingly becoming the first choice of many entrepreneurs primarily because of convenience. Merchant or business cash advances are not precisely loans, which means that credit ratings and other elements looked at by conventional banks are not involved. The most important factor that a merchant loan provider looks at is your restaurant's capability to earn revenues through credit card transactions on a monthly basis.
Restaurant finance via factoring arrangements are mainly based on your restaurant's credit card sales that are verified by your transaction statements. You would also need to present your retailer's lease documentation, identification cards, and other firm formation documents. You need not worry about poor credit ratings, because this is not an important factor.
A business owner who is simply trying to keep the business afloat needs speedy loan processing. If you have a solid and steady credit card sales, you can easily apply for a business cash advance anywhere between $5,000 and $25,000.