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| Finding and Obtaining Additional Funding For Privately Owned Restaurants |
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Funding for a privately owned restaurant can be difficult to obtain and is dependent on a number of factors. Depending on the type of funding you are looking into, you may be looking at a long wait to have the loan in your hand. Many times in the food service industry, waiting is not something you can afford to do if you need additional funding.
|  | | Funding for a privately owned restaurant can be as little as $5,000 and a much as $150,000 as a cash advance. |
Obtaining a business loan or even a small business loan can take months. There is a long list of conditions and many times, even if you apply and go through the entire application, you could still be denied the amount that you need in partial or in total. Loans also come with interest rates, which may vary and may be excessively high if you have had any issues with credit in the past, personally or business wise.
No matter when you attempt to find funding for a privately owned restaurant, at start up, for equipment upgrades, renovations, expansion or just to be able to keep your restaurant going in a trying time, it can be difficult to get the loans you need in the amounts you require. Additional funding sources are necessary for any restaurant.
Once such additional resource that can make funding for a privately owned restaurant a little easier is something called a cash advance. It is a relatively simple process and can provide the cash needed for funding. There are a few qualifications, however, that need to be met in order to receive this type of funding. It cannot be used for an initial start up. This is because the funding requirements require that the business be in operation for a minimum of 12 months.
In order to qualify for funding of this nature the business must also process a minimum of $5,000 in credit card transactions through Visa and MasterCard.
These requirements are in place because of the cash advance process. The process is fairly simple. In order to obtain funding, a business sells a percentage of its daily credit card sales. This is why the business must do a minimum of $5,000 in credit cards sales a month.
Funding for a privately owned restaurant can be as little as $5,000 and a much as $150,000 as a cash advance. Repayment can occur at any time but the collection is usually done as soon as the Visa and MasterCard transactions are settled. If a total of 90 percent has been repaid it is possible to obtain additional funding.
While this may be a small amount compared to what is available for business loans, it can provide a way to obtain quick cash for a business that is in need of assistance. Funds usually become available anywhere from 10-14 days after approval. For those in emergency situations, this is an ideal way to obtain additional funding.
It may also be difficult to get business loans in small amounts. Business loans tend to be in larger amounts and if only a small amount is necessary, this can be a quick and easy way to obtain the necessary amount, saving the time, money, and energy it would take to filter through the other lending options.
There are a few things to consider. In order to qualify for a cash advance from Merchant Cash Advance, the financial processor used for credit card transactions from Visa and MasterCard must be one that works with Merchant Cash Advance. This is because a portion of sales is transferred directly to Merchant Cash Advance for the repayment of the funding for a privately owned restaurant.
 | | | When looking into how to fund a privately owned restaurant, consider all the available options when it comes to funding. | |
One of the biggest hassles for business owners comes in when it comes time to use the money that was obtained. Depending on the loan, the money may be restricted to only equipment or only pre-determined purposes. If salaries are not listed, then the money is not supposed to be used for this. The same goes with grants should the funding for privately owned restaurants include any business grants.
With merchant cash advance or cash advance options, the money simply needs to be spent on business expenses. This means you can use it to pay for anything you need for your business, including supplies, salaries, equipment, wallpaper, and paint.
Another option for funding for a privately owned restaurant is to consider private funding. Private funding means that an individual supplies the money for the loan rather than a bank. The interest rates are usually higher than if a bank loan were to be considered. However, private funding usually does not have the restrictions and is usually easier to obtain once it is procured. Depending on the situation, this may be something to consider as an additional funding source especially if the restaurant in question is already proven to make a return.
There are a variety of different funding options that are available that can assist in everything from start up to renovations. Additional funding sources can be excellent resources when bank options are no longer available or if you need only a small amount of additional funding. They also work well in those cases where bank funding does not cover all requested expenses.
Cash advances are one of the fastest ways to obtain additional funding. The requirements are minimal and funding can be obtained quickly usually within two weeks rather than having to wait months. When looking into how to fund a privately owned restaurant, consider all the available options when it comes to funding. There are more options than simply loans, including, grants, private cash, and cash advances. They can provide you with a variety of options when cash is needed quickly or when more than a loan amount is needed.
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