The restaurant business is a rewarding business when running smoothly in a right way with adequate working capital. The business has highs and lows, and the sales are not steady for any restaurant business even the most established ones. A wise restaurant owner manages the funds well to achieve the maximum sales and has adequate working capital. Availing Merchant cash advances not only help restaurant business to run smoothly but also facilitates growth by enabling expansions and new launches. The business cash advance can fill the gaps in working capital if availed at the right time.
A merchant advance loan can boost working capital and can be used for various purposes by a restaurant business which includes;
- Purchase of new equipment
- Renovation, repairs, and expansions of the restaurant
- Licence renewal
- Stock inventory for seasonal volume increases
- Promoting the business
If you check online you will find numerous merchants that offer cash advance at competitive prices, which confuses you a lot when it comes to applying for a cash advance. There are several ways of availing merchant cash advance for your restaurant business but if you want to hasten the process and get it approved quickly then here are few tips.
#1 Eligibility
Generally, the basic requirements of all lenders are same, so before even starting to a find a lender suitable for your requirements, go through the eligibility criteria and make sure you meet them.
- You need to be a sole owner of the business or a partner
- Your restaurant should regularly accept and credit and debit cards for payment.
- Your restaurant needs to be an established one, and you need to provide three months business results
#2 Decide on a Lender
Once you are sure that you meet the eligibility criteria, then search online for the lenders that will be able to advance cash loan that you require. Not all lenders may be able to provide huge cash advances, and hence it is advisable to look into the lending capacity of the lender before applying.
#3 Details of the merchant advance terms
Once you have decided on the lender for your cash advance requirement, schedule an appointment to discuss in details the terms and conditions regarding time, tenure and repayment percentage. This is where you need to negotiate on the discounts and repayment schedules.
#4 Required documents
Once you are aware of the merchant cash advance requirement, you will need to gather all the financial documents of your business as well as personal. The documents may include financial statements, credit history, business plan, sales history and future sales target.
#5 Application
The application process of availing merchant cash advance is simple and can be easily applied online just by filling few forms which will need your restaurant financial information. Depending on the documents and other information of the restaurant provided the loan application can be approved in as less as 24 hours to 2 days.
#6 Customized merchant cash advances
Merchant cash advances can be customized to the size, requirement, and urgency of the funds. If you want to boost the process of funding, then you can pledge either the bank accounts advance or any equipment as collateral. This will prevent the lender from checking details of the finances as there is already a collateral to secure the cash advance.