(PRWEB) January 12, 2012
It has been a difficult few years for many business owners. Between economic recession and tightened banking underwriting processes, America’s restaurants have had trouble over the past few years expanding or even staying afloat as consumers were dining out less and eating in more. Many restaurant owners unable to pay suppliers have had to shut their doors.
However, in 2011 The National Restaurant Association has reported a change in the industry which perhaps suggests that the American economy is returning to normal functioning capacity. In 2011 the American restaurant industry reached a record high of $604 billion in sales, a 3.5% increase since 2009. Even on holidays such as Thanksgiving that can be described traditionally as “stay home get-togethers,” over 14 million Americans dined out.
“We have definitely seen an increase in success stories for Restaurants,” says Jared Feldman, CEO of Paramount Merchant Funding which specializes in restaurant finance. “More restaurants are seeking business funding for expansion, hiring employees, and purchasing new equipment. In 2009 the picture was very different as many business owners who were seeking restaurant funding were looking for a miracle to get them through their slow months.”
The restaurant industry is the second largest private sector employer with over 13 million employees, which adds up to about 1 out of every 10 working Americans. When taking into account the full breadth of the impact of the restaurant industry, the number of employees jumps to 20 million.
Out of every five Americans in 2011, two wished that they were able to eat out at restaurants more. Restaurants seeking to expand their businesses have been taking more advantage of advertising campaigns especially over social media outlets such as Facebook and Twitter. “We have seen some very creative companies out there which is very promising,” Mr. Feldman continued. “One of the more interesting concepts we have seen are high end mobile food trucks. As providers of business funding, we like to see owners with vision and initiative who come up with new concepts and new marketing techniques to further expand their business.”
Paramount Merchant funding specializes in restaurant financing and has provided thousands of restaurant owners across America with business funding through their merchant cash advance program. This form of restaurant finance allows for restaurant owners to obtain working capital despite poor credit, and a business model that has typically high failure rates. The business funding is typically more expensive than traditional bank loans simply because of the risk involved when advancing unsecured money.
Despite the fact that banks are no less lenient in their underwriting standards, restaurants are still able to expand and improve their businesses through alternative restaurant finance with private funding firms like Paramount Merchant Funding.
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