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Table of Contents

Lead Story

Fintechs: friends or foes?

Patti Murphy


Industry Update

News Briefs

Selling Prepaid

ETA sets forth recommendations on prepaid rule

Mixed forecast for open-loop prepaid cards


Why every MLS needs to know how to cross-sell

Barry Davis

Don't leave alternative payments on the table

Dale S. Laszig
DSL Direct LLC

A solid niche for cash advance products

Steven Feldshuh
Merchants' Choice Payment Solutions East


Street SmartsSM:
Never sell a merchant account again

Aaron Nasseh
Finical Inc.

Portfolio rationalization

Adam T. Hark
Preston Todd Advisors

The real reason so many newbies fail

Jeff Fortney
Clearent LLC

Company Profile

Apogee Payment Systems LLC

New Products

Automated, out-of-the-box cash discount program

XeroPoint. Cash Discount Program
Processing Solutions Inc.


Persuasion in practice


Letter from the editors

Readers Speak

Tapping into your super-user base

Resource Guide


A Bigger Thing

The Green Sheet Online Edition

August 28, 2017  •  Issue 17:08:02

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A solid niche for cash advance products

By Steven Feldshuh

We have all seen them lined up in busy business districts, at ballparks, or corporate events and private parties. We tend to love the aroma emanating from these vehicles, and our stomachs welcome them. Yes, I am talking about food trucks: fast food on wheels so many of us gravitate to.

There are trucks for pizza, ice cream, barbeque, popcorn, lobsters and pretty much any food you can imagine. Entrepreneurs running such small businesses are testing their cooking skills, or concept, in order to graduate to storefronts. Or they're business people who realize they can develop a much larger business with a fleet of trucks selling multiple food items based on the items' success. Some of them dream of franchising.

But like any business, significant capital is required. It's true these businesses on wheels don't have the rent a storefront comes with, or the utilities needed to operate a storefront, but they still always need cash. They also face the same cash flow issues storefront businesses deal with.

Small business, big needs

A new truck fully outfitted with ovens, refrigeration, lighting, counters and sinks can cost $100,000. Marketing a business for corporate events and private parties and obtaining prime business lunch or dinner spots add to these costs. Employee wages, insurance, required permits, sanitation and frequent repairs additionally take away from the profits. These businesses can't run on a shoestring, and capital reserves are simply a good business practice. Branding your truck and getting recognition or publicity also add to overall costs. So, though the entry into this world of dining is less costly than a traditional restaurant, the investment and ongoing need for food truck business loans is always there.

Food truck owners are forced to work with cash advance providers for business funding. Banks typically make it difficult for restaurants to borrow funds for their businesses. As we know, unless you put up collateral it is almost impossible today to get a personal loan. So the typical bank solution is giving a business owner a credit card, which just doesn't work.There are a number of quality companies in the cash advance space. The beauty of cash advances is that the business owner has minimum paperwork, and if cash flow is positive in their checking accounts, they can qualify to receive this type of short-term financing.

Food trucks, restaurants and most prepared-food outlets work on a very high mark-up, and despite their high cost, cash advances don't prove to be a burden to repay. Food truck business loans can be the difference between making it or breaking it for many of these small entrepreneurs.

Steven Feldshuh, President of Merchants' Choice Payment Solutions East, has 18 years' experience in sales and ISO development. Directly prior to joining MCPSE in 2012, he was President of Payment Partners. In his current position, Steven devotes the bulk of his time to assisting agents in building their portfolios. Contact him by email at or by phone at 212-392-9202.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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