POS System Financing Options

    POS Financing OptionsOf course the least expensive POS System Financing Option is CASH, but for those looking for an alternative, we have several financing options and a lot of valuable information for you!

    Probably one of the most popular POS System Financing Options is leasing.  Leasing is quick and easy.  Leasing usually requires a one page application with approval in 24 to 36 hours.  There are many leasing companies that will provide funding based on a 12, 24, 36, 48 or 60 month term with just the first payment in advance.  As the term increases so do the credit requirements.  For a new restaurant most leasing companies require a personal guarantee from a corporate officer with a strong credit rating.  Leasing companies are not interested in recovering the collateral, they want their payments, so good credit is a must.  Most POS system leasing is handled by a third party, an independent leasing company, and not by the company providing your POS system.

    There is a company that specializes in POS system funding and offers special terms for the hospitality industry!

    Bluestar Funding is serving up savings on POS purchases, they offer an Interest Free 12-month Zero Percent financing option with a maximum of $20,000.00 plus Discounted Long Term Leasing up to 60-months with Payment discounts up to 15%. For more information, call them at 888.294.0550 or apply online.

    Bank financing is an option, but usually requires great credit, a sizable down payment and the loan term will probably not be as long as with a lease.  Recently it has become very difficult for small businesses to obtain bank financing, but if available it will be less expensive than leasing.

    Credit card providers offer a couple of alternatives.  Mercury Payment Systems and Sterling Payment Technologies have some programs with their resellers that let the restaurant make fixed weekly payments from their credit card deposits.  Check with your POS reseller, as not all POS providers offer these options.

    Heartland Payment Systems has partnered with American Express to provide restaurants and retailers business loans up to $750,000.  The American Express Merchant Financing program is based on the merchant’s annual card processing volume and has a 12-month initial term.

    An other option is a cash advance which is usually calculated with a six month pay back.  Cash advances are based on your Master Card and Visa deposits with a percentage of the daily deposit used to pay down the cash advance.  Since these transactions are an advance and not a loan they are relatively easy to obtain.  There is no collateral in these transactions and the premium charged is extremely high.  Most cash advance companies will require a personal guarantee and the restaurant will be required to process all credit card transactions with the cash advance company.

    Another option I have seen used many times involves a guest rewards program.  The rewards company advances the restaurant cash for discounted future purchases by their members.  This can be a good program if the members they attract are new customers to your restaurant.

    Last but not least is the “Free POS” offered by some credit card providers.  Most of these programs are not free but can be obtained without any upfront money.  There are usually service and support fees that are charged monthly or quarterly or in some cases both monthly and quarterly.  These programs are usually for a fixed term with 60 months being a very popular term.  Since you are forced to process your credit cards with one processor the big question is, what my credit card processing fees will be in the future. 

    A properly configured POS system will pay for itself, use our POS Return on Investment Calculator to determine your monthly savings.  For financing connections visit our Restaurant Resources page.  Restaurant POS systems do a lot more than send the guest’s order to the kitchen and print their check.  Make sure you are taking advantage of all the features and functions of today’s POS systems to increase your profits. 

    For more POS information visit our home page at POS-Advice.

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