Restaurant Business: Best Payment Method

Charge: A Promise to Be Redeemed

Plastic money or the credit card is now growing as the most popular form of monetary exchange. It is convenient and easy to use. It is easy to carry and has a lot of spending power in a small package. Consumers love using it because of the extra perks that come with it, such as airline miles and bonus gifts. On the recipient’s end, money collection is certain, since the responsibility of payment belongs to the credit card company, who carries the burden of chasing delinquent customers as well. The payments may also be directly credited to the recipient’s bank account, making the sale secure.

Convenient as it may be, credit cards aren't devoid of disadvantages. Credit card companies usually charge significant percentages of sales and could diminish your earnings. Money can also take time to collect and there is more paperwork needed to claim money. Credit card fraud is very possible and can victimize both customers and restaurant owners.

Perhaps the best alternative of all is the debit card. The debit card represents everything good about cash with none of the headaches of checks. A debit card purchase is like having instant cash. A debit card looks like a credit card but functions like a check or cash. When a customer presents a debit card, the merchant swipes the card just like a credit card. The checking account of the presenter is queried to determine if there are sufficient funds in the account to cover the purchase and the amount is immediately deducted and transferred to the merchants account. This is definitely the next best thing to cash!

The Final Verdict

In choosing which mode of payment is best for one’s restaurant the final choice boils down to the customer. Restaurateurs should keep in mind what mode is best for customers to pay – what is most convenient to them with regards to their profile. It might not be advisable for a place that caters to children and teens to accept only credit cards since most kids don't have cards yet. It might not be advisable to refuse checks or credit cards for fine dining that caters to executives, as prices would be high and bring lots of cash that could be very inconvenient and secure. Of course it is good to have all modes available.

With careful study of the benefits of each mode of payment alongside the market profile, an aspiring restaurateur may be able to choose the best payment option for their restaurant. Hopefully money will rake in by the bundles, whether in cash, check, or charge. Get up to $200,000 to "move" your existing business. US Government Grants for USA Citizens. Claim your FREE $79 Gov Grant book!

Business Start Up Loan – Script Your Own Success Story With the Right Finance Method

If you thought generating ideas for your business was a difficult task, then arranging necessary finance in the form of business start up loans would seem even more difficult. Many entrepreneurs succumb at this stage, only to lead their idea to dumps. Entrepreneurs, who withstand the challenges of the process, continue to shine in the world of business.

Capital has been rightly referred to as the lifeblood of any business. Business starved of capital during the initial stages of its formation, would be similar to malnourished children who were not fed properly during their childhood. The growth of the business will be stunted, often affecting negatively its productivity and efficiency.

Entrepreneurs no longer have to depend solely on their own resources for purposes of capital. Many loan providers are ready to finance promising business ventures. The loan is referred to as business start up loan. Amounts on business start up loan ranges from £30,000 to £250,000. Entrepreneurs can qualify for more loan amount, provided the business plan is very attractive. Loan proceeds will primarily be used for purchasing the necessary machine and equipments, paying for legal documentation, maintaining office and any other expenses that crop up during the initial formative period. Moreover, business start up loan contributes towards the working capital.

Borrowing through business start up loan is fraught with a number of challenges. The very first task in the process will be to generate faith in loan providers that the amount lent on account of business start up loan will be safely returned. Preconceived notions about new entrepreneurs make the task difficult. The negative notions are further strengthened through two factors:

•Firstly, borrowing entrepreneur has zero or very less credibility in the market at the particular point of time. Loan providers fear risking the loan amount on borrowers with low credibility.

•Secondly, the borrowing entrepreneur is still to form business or the business is still to show results. Lending at this stage, without having knowledge about how the business fares in the long run, is perilous for the loan provider.

The borrowing entrepreneur is thrown into a dilemmatic situation wherein they cannot prove their worth till they start business. They cannot start business until they get the necessary finance. And they cannot get the necessary finance till they are able to prove their worth.

However, not all loan providers look at new venturists with suspicion. New venturists are considered a unique group of people who have a unique set of characteristics. A sound and foolproof business plan works well for new entrepreneurs. Bankers study the plan well and then decide if it will be viable to lend.

Guaranteeing payback through collateral is another important method of getting good deals in business start up loans. These are referred to as secured business start up loans. As a part of this method, the borrower will have to offer lien on certain asset/assets to the loan provider. This process is also referred to as hypothecation. Though the asset will continue to be in possession of the borrower, loan provider has every right to claim the asset in case of non-payment of loan.

Loan terms for business start up loan ranges from 5 to 25 years. Given the unique income structure of businesses and self-employed individuals, wherein income is not guaranteed, flexible repayment schedule will be especially helpful. Under a flexible repayment schedule, the borrower gets to repay in the manner that he chooses. Monthly repayments can be increased, reduced and discontinued altogether depending on the entrepreneurs finances. The arrangement will have to be accepted by the loan provider. Sometimes, regular payments for a certain period may be the prerequisite for flexible repayment schedule.

Business start up loans may exceed personal loans in terms of interest rate. The typical APR on a business start up loan will be anywhere between 7-13%. Online comparison and searching loan providers will ease the process, besides improving the quality of deals. Rates may go upwards depending on the presence and value of collateral and the credit status of the borrower.

Business loans will not suit borrowers who want full control over their business. Some loan providers would like to dictate terms and thus curb the control of the entrepreneur over his business. The borrowing decision must be made only after an impartial and impatient study of the pros and cons of the method.