Many times the most difficult part of small business ownership is acquiring capital to maintain and sustain steady growth. This is even more valid when you are seeking business loans. There is a false impression that restaurants are more apt to fail than any other type of work; a 10% success rate is often reported.

The fact is that at the five-year mark restaurants have 40% success rates, almost identical to most other kinds of small business. However, it can be tough to get financing, especially from mainstream places such as the local bank.

Business loans can also be attained from merchant services providers as a factoring agreement. These vendors offer financing arrangements that range from a few thousand dollars all the way to a quarter million dollars if needed. The entrepreneur is basically selling their future Visa/MasterCard receivables at a discount in order to get the money they need immediately.

The merchant cash advance is repaid by way of a credit card factoring based contract. A percentage of credit card sales are paid back based on a “Daily Capture Rate” that is agreed upon prior to getting the funds which means that during a slow business month the advance can still be paid without having to face delinquency fees.

When you run a restaurant it can be tough to anticipate when you will need to have additional cash available. Start up capital can be greater than anticipated, and the first large crisis can be a “make or break” happening. Even if the business owner has stellar credit, it can take months for a bank loan to be approved; in the time being, business continues to be bad.

Restaurant Cash Advance agreements give a much needed, fast solution for restaurants in need of funding. Neither collateral nor years of financial statement are needed to be approved for restaurant loans when you work with a proven financing company.

Dating back to early 2008 Daniel Samoohi has aided 1000’s of business owners in finding reputable providers in order to review offers for business loans. By making providers compete with each other, Daniel also helps businesses in finding great deals for small business loans.