Sometimes the most tense part of entrepreneurship is acquiring financing to maintain and sustain ongoing growth. This is even true when you are seeking restaurant finance. There is a mistaken belief that restaurants are more apt to fail than any other niche; a 10% success rate is often quoted.

The actuality is that at the five-year mark restaurants have 40% success rates, virtually equal to most other forms of small business. Nevertheless, it can be hard to get financing, especially from traditional places such as the local bank.

Restaurant loans can also be attained from credit card processing vendors as a factoring contract. These providers have financing choices that range from a few $1,000 reaching to a quarter million dollars if necessary. The entrepreneur is basically selling their future Visa/MasterCard sales at a discount in order to get the funds that are necessary right now.

The restaurant cash advance is repaid with a credit card receivables based agreement. A percentage of credit card sales are paid back based on a “Daily Capture Rate” that is agreed upon prior to getting the capital that means that on a slow business stretch of time the advance can still be paid without having to face repercussions.

When you are running a restaurant it can be difficult to forecast when you will need to have additional cash available. Start up expenses can be greater than expected, and the first significant mistake can be a “make or break” occurrence. Even if the business owner has stellar credit, it can take months for a bank loan to be funded; in the time being, business continues to suffer.

Credit Card Factoring agreements provide a much needed, quick solution for restaurants in need of cash. Neither collateral nor years of documentation are needed to be considered for restaurant loans when you work with a trustworthy financing company.

Since early 2008 Daniel Samoohi has helped thousands of business owners in finding trustworthy providers in order to compare offers for restaurant finance. By making lenders compete with each other, Daniel also helps businesses in finding great deals for restaurant loans.