subject: Fast Business Loans - Acquiring Restaurant Financing With Credit Card Factoring [print this page] Restaurants are thought to be among the largest risk ventures. This makes it extremely difficult for a budding culinary small business owner to obtain necessary business loans, both when beginning the business and when growth or repairs are warranted. A merchant could wait weeks or even months to hear a peep from the conventional bank, and in the meantime, the business could possibly fail.
Another option for acquiring Fast Business Loans is a merchant loan or merchant cash advance. These financing agreements fall under the category of credit card receivables factoring. Credit card factoring is a practice whereby a third party gives the merchant working capital in exchange for a discounted rate on future Visa-MasterCard receivables. That translates as follows: the credit card factoring company will give you financing in exchange for a percentage of your anticipated credit card receipts in the future.
Approval is readily available within a day or two and the funds is in your hands within about 10 business days - often less. No collateral is required because the product is based upon anticipated revenues.
Since the pay back schedule is tied to actual sales, a poor month's business does not necessitate "creative bookkeeping" to keep up with a predetermined payment amount. The one caveat is that the small business owner must stick to the prearranged agreement or the entrepreneur can be held accountable for repayment.
The fact is that many entrepreneurs, particularly beginners, simply can't meet the qualification criteria set forth by the conventional banking industry. This doesn't necessarily mean that the entrepreneur is doing poorly or that the entrepreneur isn't reputable.
Most of the time the sole issue is the fact that the business is too new and hasn't had the time to establish a long reputation and credit rating. Acquiring Fast Business Loans through a merchant account factoring agreement makes good business sense in these types of circumstances.
by: Daniel Samoohi.
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