Getting a business loan is no simple task. Getting a restaurant loan is even harder! Why are banks so hesitant to provide financing to restaurants? Bluntly stated, the majority of new restaurants fail within the first year. An equally sad number of restaurants fail within the first two years.
The biggest controllable factor that can determine the success of a restaurant is its source for available financing. Many entrepreneurs in the food industry succeed in securing their restaurant loans, but later find that their initial funding was not enough to keep them up and running until the restaurant “catches”.
So what do you do when your restaurant loan just wasn’t enough? You go back to the bank!
Unfortunately the bank is not always willing to help you through these difficult times. They knew it was risky to lend you the money in the first place, but they did anyway. However, now you don’t have any more collateral, your credit is bad from a few slow months, and you’re still asking for money. The bank says No!
There is still hope for your restaurant! A restaurant business cash advance can help you get through tough times and slow beginnings. A business cash advance allows you to borrow money against future sales through credit card factoring. This financing / loan alternative is ideal for restaurants as it does not require any collateral and provides flexible repayment options.
Benefits of a Restaurant Cash Advance (Loan Alternative):
- No collateral necessary
- Bad Credit OK
- No fixed repayment (repayment based on sales volume)
- Faster than a loan (approved in 24hrs or less)
- Unlike restaurant loans – 97% of qualified applicants are approved
- Must be an existing business (no start-ups)
- Must process a minimum of $1000/month in credit card invoices