When the need of the hour is funding and banks are reluctant to lend, restaurants still remain in need of funds for the business. Unsurprisingly, the alternative financing option of a merchant cash advance is a growth industry for restaurant finance. A cash advance very quickly brings money where it is needed with a quick approval process. The cash advance is repaid from a portion of future credit card receivables and amounts to the base amount advanced plus a fee that varies according to the terms of the agreement.

Restaurant finance and the financing needs of small businesses through the use of cash advances is a growing source of capital provision. In the merchant cash advance financing plan a fixed amount of cash for a fixed percentage of future credit card receivables is provided. Repayment is a daily process with automatic collection of credit card sales transactions.

To provide merchant cash advance a portion of the future credit card receivables of a business are purchased at a discount which varies from firm to firm. This rate is calculated based on the historical performance and health of the business. The business is provided a lump sum and the financing company collects a percentage of daily credit card receipts until the full amount is paid off. The financing company will partner with a big credit card processor to collect what the due percentage amount from the retailer every day or as credit card transactions are processed. There are no fixed monthly payments, no late fees and no hidden charges. You simply pay a percentage of your future credit card sales so repayment ebbs and flows with your business cycle.

In a restaurant financing plan a small amount of future credit card sales will be taken in exchange for the funding amount. The approved customer in effect receives an advance on their future credit card sales. There is no fixed payment requirement as the plan permits repayment to be a percentage of sales if you have a merchant account and credit cards as methods of payment, you can be eligible to receive funding very quickly.

Business cash advance will provide small business entrepreneurs with the working capital they need quickly. For the best deals in merchant cash advance, you need to submit credit card processing statement to show your paying capacity. About 3 to 6 months of your credit card processing statements, will be needed. If you have been in business for at least a year and your accounting figures demonstrate how much you are earning per month, you will find merchant cash advance will be a financing option for you. If you have been in business for a shorter period of time, you will need to look for companies that do not require you to be at least a year in the business world.

Statistics indicate that most businesses applying for loans from banks fail in their quest to win approval. Businesses who are denied by banks may qualify for a business cash advance. This cash advance is a useful tool if properly applied by the prudent customer. There are benefits offer by this financing method that cannot be found elsewhere that are attracting a growing list of businesses.

This financing method is in more demand today by businesses when other financial resources have either reduced or dried up. Banks have reduced their lending or even let go of some types of customers they had previously supplied. Thus even as the essential need for capital has not diminished, its supply has. Application process for a cash advance is quick and demands less documentary evidence. The application process has no closing charges. There is neither the requirement for collateral or a personal guarantee. Tax return forms, financial statement and asset documentation is not demanded. Rather than personal credit scores that are scrutinized, it is business performance that matters for application assessment purposes.

To use this useful tool responsibly means you will keep this option in your financing plans. To do this the business should be certain it can afford the terms. Compare the programs offered by vendors and understand your carrying costs, the time to repay the monies back and any risk factors you could have. The contract should be scrutinized to ensure the payback percentage does not fluctuate. Check out customers, past and present, if you wish before committing yourself. The right financing firm will encourage you to do what is needed to add to your comfort level as a user. After all, these firms will want to see their businesses grow with satisfied customers. The rise of the merchant cash advance industry is revealed by its growth in ten years. A decade ago, there was one main provider that advanced less than 10 million dollars a year. By 2008, there were 50 rivals advancing around 700 million dollars a year. This reflects the growing needs they are meeting in their market.

Find the right choice for restaurant finance by looking online. There you can find several choices of business cash advance programs that will work out great. Go online and learn more now.