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Raising Quick Restaurant Financing

What should you do should your oven breaks or your salamander stops heating evenly? If you already put all your startup funds into starting your businesses, establishing a source of rapid Restaurant financing can be very challenging. A bank won’t lend a random sum on short notice. Fortunately, there is another source of money looking up at you each time you process a credit card.

Private Investors that supply Restaurant financing utilizing merchant accounts are in a unique position to assist you in locating quick capital. Credit card factoring companies are often willing to furnish factoring agreements with their reliable clientele. A factoring agreement consists of your establishment selling future anticipated credit card revenue to the factoring company in exchange for desired capital right away.

The commitment takes less time than a bank loan; usually you get your money in a week. You have less paperwork to give in, and as long as you have had consistent credit card sales for several months, you are considered a viable risk for such an agreement. One of the biggest differences when looking at a traditional loan and a factoring agreement is that using a bank loan your company is personally liable for the debt even if you go out of business. While a factoring agreement is a risk, it is better than having to shut down and never having a fair shot at success from the start.

The truth is that running your own establishment is stressful enough without having to stress about vital financing. Restaurant financing is particularly hard to establish because of the erroneous concept that restaurants close down more often than other industries. If you have already bothered friends, family and your own savings to open, it is good to know that there are other, advantageous sources of working capital available.

I would never recommend obtaining the capital until you need it. The agreement is more expensive than a commercial bank loan and should only be taken out if your establishment is ready to spend it. I would recommend establishing a relationship with a business cash advance firm prior to needing the money. This way when the time arises where you need more cash flow or to fix a machine in your establishment, you will know what your company needs to qualify for an advance. Shop around a little to increase the chances that you will you get the best deal you can get. Never agree to closing costs and remember that you do not always need to change your credit card processor to obtain the advance.