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| Obtaining Additional Funding for a Privately Owned Restaurant |
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Funding is always something that sits in the back of a business owner's mind, especially with a small business like a restaurant. There are times when finding additional funding for a privately owned restaurant can be a challenge. There are a few alternatives and methods that can provide additional funding to small businesses when they need it most.
|  | | Most privately owned restaurants are going to be single smaller locations. |
There are a number of reasons why a business may be looking for additional funding. It may be due to a poor economic turn, expansion, or renovation. It could even be to upgrade and purchase new or better equipment. The first place to look is going to be small business loans. Most privately owned restaurants are going to be single smaller locations. This means they will usually qualify for these types of loans. This is the standard first option of most businesses.
Another option is grants. There are a number of grants that are available to businesses for use in a variety of different purposes and can provide funding for a privately owned restaurant easily if qualifications are met. The downside of this type of funding is the fact that there may be some restrictions on what the money can be allocated or used for. For example, the grant may stipulate that money can only be used for equipment or for certain types of renovations. This, of course, can also be dependent upon what is placed on the grant application and what you plan to use the money to purchase. With regards to this, it would be advantageous to place all possible uses of the money on the grant applications in order to ensure that all bases are adequately covered.
Another funding for a privately owned restaurant option is private money. This is simply taking a loan out from an individual or investor rather than from a bank. The interest rates will be higher but the terms are usually more negotiable along with the amount that can be borrowed. The qualifications are usually lighter as well, making it easier to obtain this type of funding especially if you have had issues with credit in the past.
Other than small business loans, grants, and the money that comes from private funding you may want to consider something like a cash advance from Merchant Cash Advance.
A cash advance is just that: an advance. It works the same as paycheck advances. Just as you take out a cash advance on a paycheck with the balance, due as soon as you get paid, the same goes for these types of cash advances, though instead of a paycheck it is the credit card transactions.
A cash advance of this nature is a presale of the credit card transactions that the business — in this case a restaurant — will obtain. There are a few advantages to this type of additional funding for a privately owned restaurant. The first is that it is quick. In some cases, approval can be granted within 1-3 business days. Once approval has been obtained, it is only 10-14 days before the money becomes available. This can be great for situations when money is needed quickly.
It is also an excellent way to gain additional funding for a privately owned restaurant if loan or grant amounts are not enough to cover expenses. There are some things that are necessary in order to be able to qualify for a cash advance. The first is that the business must have been in operation for a minimum of 12 months. Second, there must be at least a minimum of $5,000 in credit card transactions through Visa and MasterCard every month.
The reason for this is that the cash advance is a pre-sale of off the credit card transactions that the store earns. When they clear, Merchant Cash Advance would take a portion of the daily sales to go back to the repayment of the advance.
There are a few other qualifications. The financial processor used by the business has to be on the same list as those that work with Merchant Cash Advance in order to obtain the qualifications necessary for funding. If the financial processor currently used is not on the list, it may be necessary to switch processors in order to qualify for funding.
 | | | Funding can also be used for salaries, advertising, and marketing. | |
This type of funding for a privately owned restaurant is repaid on the payment schedule; it does not exclude early repayment. Once 90% of the advance has been paid back, it is possible to qualify for additional funding should additional funding be necessary.
When looking into the various types of funding for a privately owned restaurant there are a number of things to consider. The first is to consider exactly how much is actually needed and then increase it by at least 10% to allow for additional unexpected expenses. Remember that shopping around and obtaining information on all the various options is essential to ensure not only the best financial deal but the best terms for the business as well.
There are small business loans, small business grants, as well as private funding and cash advance options that are available to provide businesses with additional funding that may be needed for a wide variety of expenses. No matter what the situation may be from just wanting to expand the business to upgrading equipment to giving a new look designed to attract more business, there are funding options that are available. Funding can also be used for salaries, advertising, and marketing, whatever the need may be. Unfortunately, one type of funding is not always enough to cover everything. This is why it is important to be willing to check out all the additional funding options, which may be available. This is an essential aspect of maintaining a strong financial foothold with the business and the business world in general. Repayment of debts is one way to ensure that improved options are available in the future.
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