Does Your Restaurant Understand Where It Can Acquire Restaurant Financing?

Have you ever tried to apply for restaurant financing for your company? It is almost impossible.

Florida, FL (prHWY.com) May 24, 2012 - Florida, May 21, 2012 - Have you ever tried to apply for restaurant financing for your company? It is almost impossible. With the mounds of documentation and tough guidelines it is not a surprise. There are other avenues for business financing, and among the most popular are merchant account loans. Let's review at the similarities and differences between traditional restaurant financing and merchant account loans.
Paperwork Required
Restaurant Financing: You can expect to need a stellar credit report, several years of business history, personal financial documents, tax returns, P&L and a real business plan. Should you have several years in business, expect to be asked for several references from other business people in the community. The paperwork alone can destroy your chances of approval right from the start. Most new companies won't have these prerequisites for the first 2 years.
restaurant financing - Merchant Account Loans: Sales records detailing merchant processing receipts for six months that exhibit a specific transaction level, normally around $5,000 a month, a decent credit report and a copy of your current lease agreement. This minimal amount of paperwork gives several new businesses receive the capital they need. Any establishment which takes credit cards and has been in business for 6 months should possess these items.
Amount Available
Restaurant Funding: Standard loans will vary greatly. Since payback terms are typically based on a fixed amount each month, the bank will not loan more than it predicts you will pay back. Nearly all banks strictly give the borrower a fraction of what they have requested, so expect to ask for an amount higher than you really need and attempt to negotiate a longer repayment period.
Merchant Account Loans: Most loans range from $5,000 to $1,000,000 per location. To obtain a large amount of funds you will have to illustrate your ability to repay them based upon credit card sales, not your credit rating. this is a factoring agreement, and will be paid back as a portion of your credit card transactions every day. In a bad month you will pay less, in a good month, you will pay more of it off. This flexibility is a true asset in the real world. Which alternative type of financing will work with your company based on the revenue you brought in

About the Author:

Restaurant Funding - At Merchant Cash Finder we know that comparing different quotes is the best way to shop for a Merchant Cash Advance. We take pride in helping business owners get the funds they need while making sure they receive the best deal!

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Tag Words: restaurant loan

Categories: Business

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Merchant Cash Finder
Florida, USA
Phone: 888-970-1119
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