Sometimes the most tense part of running your own business is acquiring cash to maintain and sustain ongoing growth. This is even more true when you are looking for business loans. There is a misconception that restaurants are more likely to fail than any other business; a ten percent success rate is often quoted.
The actuality is that at the 5-year mark restaurants have 40% success rates, almost identical to most other types of businesses. Nevertheless, it can be difficult to acquire funds, especially from normal places such as the local bank.
Restaurant loans can also be obtained from credit card processing providers as a factoring contract. These vendors offer funding options that range from a few 1,000 dollars all the way to a quarter million dollars if needed. The business owner is basically selling their future Visa/MasterCard sales at a discount in order to get the money that are necessary immediately. Continue reading ‘An Alternative to Searching For Business Loans’ »