| 1 |
What is a restaurant business loan and how does it work?
A restaurant business loan, also referred to as restaurant financing is a convenient alternative to traditional small business loans. It is cash given up front to businesses when they need it, and is based upon the cash flow from monthly credit card sales charges. Monthly payments are not set and are automatically taken from batched credit card sales as they come in.
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| 2 |
How does restaurant financing effect my current credit card merchant account?
'Loans for Restaurants' has agreements with most of the processing firms in the nation. In the rare cases of businesses using a processor with whom we do not have an agreement, you may be asked to change to one of our preferred processors. |
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| 3 |
How long is the approval process for a restaurant financing loan?
Once all documents are received, 'Loans for Restaurants' will review to determine the loan amount in as little as 24 hours.
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| 4 |
How much money can I qualify for?
The total restaurant loan amount is based on your recent business history. Restaurant financing can range from $3,000 to $300,000 with the majority of businesses receiving $20,000 to $30,000. See how much you can qualify for with our online calculator.
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| 5 |
I have a low credit score; can I still get a restaurant loan?
Yes. While a personal credit check is part of the 'Loans for Restaurants' approval process, yet it does not weigh heavily in the final determination. Unlike a small business loan, restaurant financing approvals are mainly based on your overall business health.
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| 6 |
What are the basic qualifications for a loan from 'Loans for Restaurants'?
We work with small businesses that accept credit cards and process at least $5,000 in Visa and/or MC sales per month.
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| 7 |
Are there any up-front fees associated with applying for a restaurant loan?
There are no application fees or out-of-pocket costs associated with business cash advances or merchant cash advances with Loans for Restaurants'. |
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| 8 |
What is the difference between a 'Loan for Restaurants' financing and a small business loan?
Restaurant financing loans and business loans are very in different in several ways. See below:
| Information |
Conventional Loan |
Our Restaurant Loans |
| Financial Statements |
Detailed Financial Statements
for 2-3 years |
Financial statements NOT required |
| Audited Tax Returns |
Audited Tax Returns required for 2-3 years |
Audited Tax Returns NOT required |
| Time in Business |
Must be in business or
Minimum of 2-3 years |
Just need to be in business for at
least 9 months |
| Personal Guarantees |
Personal Guarantees of all owners |
ONLY Guarantee against fraud or
intervention |
| Approval Process |
Lengthy Approval Process |
24-48 hours for approval |
| Application Fees |
Costly Application Fees |
NO application fees |
| Credit Scores |
High Credit Scores Required |
Proprietary Scoring system does NOT
require high credit score |
| Closing Costs |
Costly Closing Costs |
Minimal fee paid only if account funds |
| Collateral |
Collateral of all Business Assets |
ONLY future credit card sales |
| Application |
Lengthy and complicated application |
ONLY Non-binding application and copy
of last four months credit card processing statements> |
| Payment |
Fixed Monthly Payment |
Repayment based only on credit card
sales |
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| 9 |
How do I repay the money from the restaurant business loan?
Repayment is made by automatically debiting an agreed percentage of your credit card sales every time you batch. There are no fixed payment schedules; you pay when your customers pay.
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