Do you own or want to start a restaurant? People love good food, and a lot of people love cooking. For many, owning a restaurant is the ultimate American dream. You get to own your own small business, and get to be in charge of your own destiny. Starting and running a restaurant, however, is no easy task. And running a restaurant isn’t exactly cheap. Most likely, you’ll need funding, such as a loan or merchant cash advance.
Banks, however, often shy away from lending to small restaurants unless they have been established for a long time. Why? Many restaurants, sadly, end up failing. This makes the restaurant industry a higher risk industry. There are other options, however, such as getting a merchant cash advance. With a cash advance, you will sell a portion of your future sales, usually credit card sales. In return, you will secure funding pretty much immediately.
Merchant Cash Advance Key Points For Restaurants
- Merchant Cash Advance providers will often work with younger restaurants
- Will work with restaurants with bad credit ratings
- No burdensome fixed payments, you simply sell a portion of your sales
- Generally easier and more quick to obtain
Why You Need a Merchant Cash Advance
Many restaurants are able to generate solid revenues. Problem is, they might not be able to generate massive profits. So while money is coming it, it’s often not enough to pay for big things, such as a new oven or freezer, or a complete remodel. Much of the equipment needed to run a restaurant is very expensive.
This creates a catch-22, the restaurant could expand and/or improve its services if it had some cash. Then it could generate more revenues, which would make future funding needs easier to meet. Yet in order to pay for improvements, the restaurant needs cash first.
What Can a Restaurant Merchant Cash Advance Be Used For?
Besides remodels, a merchant cash advance can also be used to run marketing campaigns, hire staff, and many things else. While loans are sometimes accompanied by strict spending restrictions, Merchant Cash Advance Loans are normally more flexible. For a merchant cash advance provider, the most important thing is to ensure that a business owner has the cash they need to be successful.
Further, Merchant Cash Advance Loans can often be obtained more quickly. While banks can take months to provide a loan, a cash advance can often be provided within a matter of days. This will allow you to act quickly. The restaurant industry is quite cut throat, so time is of the essence.
Merchant Cash Advances are perfect for restaurants. They provide much needed funds, but do not require fixed repayment plans. Instead, you simply sell a portion of your credit card sales.
