Does Your Eatery Need Restaurant Financing?

You are submerged in managing a business, not playing store. Yet for some reason if you head to the bank and try to get a business cash advance they insist on treating you like a kid. Not only do you need to supply a truck load of financial documents; tax returns, credit histories, business plans and more, your chances of actually receiving the money are small. Also, they want you to illustrate to them accurately how you will spend the money and then they dictate stringent terms for paying it back.

Do you want to know how difficult the condition is? Financial coaches state that you must ask for at least 30% more financing than your establishment needs and a remittance time of at least 25% longer than you want. That increases your likelihood of actually receiving as much money as you require, and hopefully enables you to repay the advance even if you are having a bad month.

You have different choices. Of course you can head to family and friends to see if they happen to possess a stash they are glad to invest, but let’s face it: no one has this type financing these days. You can rack up debt on your credit cards, paying 25% interest on the cash advance, or you can speak with a restaurant financing agent, who will quickly realize how great you are doing in your new venture and is eager to enter a factoring agreement with you.

If you haven’t read about restaurant financing or a factoring agreement, you aren’t alone. The way such an arrangement works is that your business will effectively sell a portion of your anticipated credit card transactions from the next several months to the factoring company at a discount. They give you money right now in exchange. Within the next few months, you will repay the advance by giving them a set percentage of your credit card proceeds each week. Nothing is smoother, and it is quick too, with an average turnaround of 7-10 days. Now that is a merchant advance you can afford.

I would urge you to start reading up on the program. There are several things you should look out for. For instance, will your industry type be accepted? What are the fees, if any associated with the program? What about the cost? What documentation will you be required to have? Many of these answers will be seen on my blog, www.blog.merchantcashfinder.com. Please stop by when your establishment requires information on getting working capital.