An Alternative to Restaurant Loans
Have you had trouble getting approved for restaurant loans? What if you had an easy way to raise capital for expanding your restaurant business without tying up your credit or putting up any collateral? You can do this easily with what is called a merchant cash advance. Unlike a small business loan, (and all the paperwork that goes with an application for one), the business cash advance is not a loan at all.
When you take out a business cash advance, you are actually selling a portion of your future credit card receipts to the provider at a discount. In return, you have access to a lump sum of cash that you can use to expand your business. With restaurant loans you have to pay a fixed amount each month, no matter how much, or how little volume your business accrues, and this can make for a big cash squeeze during those slow months. Since the business cash advance is paid back with a portion of your credit card receipts, when your business is slower, you also pay less on your advance.
One thing that makes it difficult to get restaurant loans is this lack of liquidity during the slow times. But, despite this, business cash advance providers like doing business with restaurants because they know you produce a lot of credit card receipts, which is what they are buying. You may be surprised how easy it is to find a provider that can give you terms that are right for your business. A broker will be able to take your application information in minutes to help you find the right deal, and upon being approved you can realistically expect to get your cash in a matter of a couple of weeks. You are the best judge of how capital investments in your business will be able to affect your ability to generate receipts. Rather than try to prove this to lenders for restaurant loans, you can easily raise capital to expand your business based on those very receipts.
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July 30th, 2010 at 11:22 pm