Loans for Restaurants | Sure Payment Solutions

A big problem facing many small business owners right now is the severe lack of working capital available to them. Many people are experiencing this problem, but one industry in particular that is feeling the pain is the restaurant industry. Banks have always viewed restaurants as riskier investments than other types of business loans. This is due partly to the fact that restaurants change ownership more often other other industry types. A very high percentage of restaurants fail in the first year. Banks usually do not consider making loans to restaurants until they have made it through its third year. It is also widely known that restauranteurs do not always report all of their income, for tax purposes. It is easy to hide cash income because it can be spent on things like wages for employees, or payments to vendors. This makes it hard for banks to verify how much revenue a restaurant is actually bringing in.

The recession is adding to the problem for restaurants. When unemployment is high, and especially in a recessionary period, people look to cut unnecessary expenses out of their budgets. One of the first things to go is dining out. Restaurants have to run specials, cut prices, cut portions, and do anything else they can do to keep people coming in. This cuts into their revenue and their margins, which only increases the demand for business funding. Without being able to turn to banks for business loans, even the most credit worthy restauranteurs are looking into less traditional forms of business funding for their restaurants.

Merchant cash advance providers made a great home for restaurant owners looking for quick access to business loans. Even though the programs they offer are technically not loans, they get the job done, making working capital quickly available without a lot of hoops to jump through. Restaurants make good candidates for business cash advances for many reasons, but one of the top reasons is the fact that they tend to have a high number of credit card transactions each month without much variation in processing volume. Merchant loans get repaid directly from credit card settlements, so this makes them easier to approve. Merchant cash advance underwriters are also able to overlook some of the credit issues common in small business owners who have struggled to get his or her business going. Business credit and personal credit are not weighed heavily into their calculations, although there are custom programs, with exceptionally low discount rates, available to the most credit worthy applicants.

Sure Payment Solutions is constantly running specials for restaurant owners looking for business funding. Check our Facebook page for our latest promotions. Getting a quote is as easy as calling us up to speak with an account representative, or by filling out a Get Started form by clicking the green button at the top-right of the page. There are never any costs or obligations to see what you qualify for, so what are you waiting for?

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Source: http://surepaymentsolutions.com/sure-resources/loans-restaurants/

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