You’ve worked and put away money for years, honing on your skills, locating the best site, and hiring the appropriate crew. Eventually, you start your first restaurant. Then one day, you discover that you’re in need of a merchant advance to make a repair or to expand into the neighboring area, but where are you going to get the capital? You have already put your nest egg into the business and soliciting family is just so awkward.
The bank is unlikely to give you any capital. Not only are you still a “new company” and as a result, a greater gamble according to their numbers, you just do not have an excellent credit history. Lots of CEOs don’t.
Even if you are fortunate enough to retain lots of security to support a personal loan, you may wait weeks before you know if you have been approved. Therefor, what can you do? Relax and turn to your merchant advance agent.
Merchant advance brokers work with corporations of all sizes and ages. Even an establishment that has only been operating for a 4 months and has a confirmed credit card receipt history. Based upon that, a cash advance company will furnish the required advance in the form of a factoring arrangement.
Never heard of a factoring arrangement? A lot haven’t. A factoring agreement involves you selling, at a discount, a fraction of your expected credit card receipts in exchange for capital in hand now. What good would it do you to know you can accumulate the cash over the next three years when the opportunity to expand into the neighboring area is accessible now? You don’t want to pass up your opportunity, and moving in a couple of years will just cost you more.
Granted, it would be best to always have a reserve of cash on hand for just such prospects, but for the first couple of years, access to cash is continually difficult for a new business. Even established restaurants have times when they are required to make unforeseen purchases or restorations, and acquiring access to an advance can make all the difference. Visualize what having to close down for a week can do to your bottom line.
So, whether your dream involves obtaining those hand blown lamp shades to give your restaurant with just the right appearance, or it implies getting that new quick freeze, keep in mind that a merchant advance is as close as that credit card machine sitting on your counter.
Obtain fast and reliable quotes on a merchant advance and see what you can qualify for!