Finding Available Restaurant Finance Options That Will Work For You
Many restaurant finance options are restricted by the owner’s credit worthiness rather than the success of the business. There are options that are available to help provide the much-needed cash flow when things are running a little tight. Using merchant cash advances, the financing is simplified and readily available. This option is available for those that process credit card payments in their daily business.
Businesses have these restrictions placed on them every day. These cause unneeded struggles because most are not flush with cash like larger companies may be. The small business owner struggles with the balancing act of keeping enough on hand for emergencies while meeting payroll, taxes, rent payments, and other items that have to be paid every month. Turning to banks and credit cards have seemed like the best options in the past.
Banks and credit cards do not offer the best options. Banks require many forms and fees in order to process a loan. The process takes awhile and a denial can be devastating to a restaurant. Maximizing credit limits on cards can take years to pay back and put the business in a difficult position as well. Either option can be stressful or dangerous if the future is dependent on them.
Merchant cash advances are a safer and simpler option for providing the needed cash. The option is typically handled through the merchant company, or through another that works with the accounts. Because a pre-established relationship exists, this option is more desirable. It also relies on the sales, rather than the owner’s credit history.
The way the merchant cash advance works makes life easier for restaurant owners. Since the credit cards are processed and money deposited into the owner’s account, this system is based on average credit card sales. The paperwork is much easier than a bank loan and is virtually guaranteed. The interest paid is also much less than a typical credit card interest fee.
The repayment terms are simplified thanks to the pre-established relationship. A five to ten percent fee is charged for the loan. The payments are typically made each week or processing period. Rather than receiving a bill, the owner agrees to have the payments deducted from the credit card receipts he or she expects to receive. With a standard payment, the owner can plan the budget around the system, rather than having to juggle the books.
The system provides a win-win situation for restaurant owners. The fees are less than credit cards. Processing takes much less time and it is based on previous business practices with a company that is already familiar with the business. With billing being handled automatically, the process is easier than dealing with bills that arrive in the mail.
Restaurant finance options are available that can make life easier. Most of the time the owner may fear an equipment failure because the income is already stretched to the limit. Using merchant cash advances, the cash can quickly become available with a reasonable and simple repayment plan. Working within a system this simple makes life for the restaurateur as close to stress free as he or she will get.