Should you own a successful restaurant and you have done so for at least six months, you may apply for a business cash advance furnished using your credit card terminal.
As in all businesses, restaurant ownership is full of difficulty.
As long as everything is going well, then your sales should be covering your expenses.
It is only when something goes wrong that you need cash right away.
A credit card factoring company is in the unique position of securing you a factoring arrangement utilizing your proven merchant account revenues.
If your company has been swiping credit card payments over the last six months, and they average out to $5,000 or more you could be qualified for the type of program.
Based upon your total, the funding company may offer to purchase expected transactions in the future for working capital in your hand now.
Unlike a bank loan, a factoring arrangement requires a lot less paperwork, contains less narrow requirements and more flexibility when paying it back.
Your repayment is based on the monthly credit card transactions, so in great months you pay down more, and in bad months you get a break.
An additional benefit is that you are not personally liable for the capital if you close before paying the entire amount.
So, what can you do with a business cash advance? Nearly anything, if you attained your money with a factoring contract.
A bank will most likely want a specific application to be named prior to releasing the cash.
Once you have the capital in hand, if you discover that purchasing that new set of ovens isn't as necessary as expanding, you are at liberty to do so.
After all, if you are smart enough to run a business, surely you can be trusted to choose what is important.
When researching where to get a business cash advance through your merchant account, be sure to shop around.
There are many companies offering similar products.
Look who gives you the best quote and seems reputable.
Avoid paying processing fees and remember your business does not always have to transfer processors.