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Restaurant Financing – Traditional Versus Modern Sources Of Loans
If your dream is to start your own restaurant business, you are gearing up for being a part of an extremely lucrative and creative industry. There is an immense satisfaction attached to the idea of serving people with good food. Plus it is a profitable business that will help you bring your food dream into reality.
To get your business off the ground however, you will need to look at a vast array of financing options. Restaurant financing is a well developed industry and will offer you with a huge variety of sources to arrange your funding from. There are of course many pros and cons attached to each one and you will need to think carefully before making a selection. Here is a basic comparison between tradition and modern restaurant financing options so that you can make an informed choice.
Traditional lendersWhen you are out to seek loans for your restaurant business, you will come across a multitude of options. There are many banks and financial institutions who offer tailor made solutions for enterprises in this niche industry. But these traditional sources follow stringent criteria for considering loan applications and being eligible for one might not always be possible for every restaurateur. Only applicants who can convince the local bank manager about the feasibility of the restaurant business plan can secure a loan. Plus you must also have a blemish free credit rating and history which will also be counted in considering your restaurant loan eligibility. In most cases, the traditional lenders also require that the applicant should provide their property as collateral to secure the loan amount they are extending. There are other sources that you can seek like insurance companies and credit societies but even these will have their own set of terms and conditions that you will have to meet, in addition to the basic eligibility terms mentioned above. Financing from traditional sources is not always easy.
Modern loan sourcesThe most popular and most innovative source for restaurant financing available to entrepreneurs today are Merchant Cash Advances. Unlike the traditional loans, the merchant cash advances do not require the borrower to mortgage his/her property to obtain funds. This is an unsecured loan, where the borrower agrees to pay the lender a certain fixed percentage of the credit/debit card transactions in regular intervals. The concept itself is quite revolutionary and makes it easy for many business ventures to seek loans and credit assistance without having to face many roadblocks. These loans are offered by private finance companies with the needs of the loan applicants in mind. This is why they come with features like fast disbursal, affordable rates, easy application process and reasonable repayment terms. If you have run out of options in the traditional loan market, merchant cash advances might prove to be your savior!
Getting reliable restaurant financing loans with or without collateral can be a tricky task. But with Wallfunding.com, you can expect to get some interesting options.
About The Author
Dean Adams is a financial expert who specialises in business loans for bad credit. His articles are a treasure trove of information for any entrepreneur looking for tips and advice to manage his find requirements and credit history. He recommends WallFunding.com as a trusted source for availing such loans.