If you run a successful restaurant and you have done so for the last year, you could apply for a restaurant loan furnished using your merchant account.
As in any other business, restaurant ownership is fraught with the unexpected.
As long as everything is going well, then your income should be covering your expenses.
It is only when something goes wrong that you want cash flow right away.
A credit card factoring company is in the unique position of securing you a factoring arrangement based on your proven merchant account sales.
If your company has been taking credit card payments over the last six months, and they average out to $5,000 or more you may be qualified for the program.
Based upon your total, the funding company may offer to purchase anticipated earnings in the future for cash flow in your hand now.
Unlike a bank loan, a factoring agreement asks for a lot less financial paperwork, contains less narrow requirements and more flexibility with the payments.
Your repayment is based upon the monthly credit card proceeds, so in great months you pay down more, and in bad months you get a break.
An added benefit is that you are not personally responsible for the capital if you close up shop before you pay back the remaining amount.
So, what could you do with a restaurant loan? Just about anything, if you attained your money through a factoring agreement.
A bank can demand a specific purpose to be named prior to releasing the money.
Once you have the money in hand, if you see that purchasing that new set of ovens isn't as important as expanding, you are at liberty to do so.
After all, if you are responsible enough to operate a business, surely you can be trusted to figure out what is necessary.
When locating a restaurant loan using your merchant account, be sure to shop around.
There are many firms offering similar products.
See who gives you the best quote and seems reputable.
Don't pay processing fees and remember you do not always have to transfer processors.