Your restaurant is your baby. You’ve given birth to it; you’ve given it your body, mind, and soul. You’ve dedicated your entire life to caring for it and this is the only thing you wish to do till the end of your life. But there’s a problem, the baby doesn’t seem to be growing. It’s like it is stuck in, a constant state of infancy from which it just cannot escape.
You do make enough to survive and help your family live a satisfied life; but as the world outpaces you, you don’t want to be the only one left behind. You’ve applied for restaurant loan before, but with much disappointment, you’ve always been rejected.
You’ve wondered if the world doesn’t want you to move forward and have spent countless hours searching for a way to get a restaurant loan without banks. Well, look no further, because your search is over!
A Merchant Cash Advance is a way of attaining lump-sum money for a business against a negotiated upon future credit card/ debit card sales percentage. It’s commonly called small business financing, as it helps small businesses attain instant funding without much hassle. Your restaurant loan can easily come from Merchant Cash Advance and here’s all you need to know to do just that.
What is the concept of Merchant Cash Advance?
As the name speaks for itself, Merchant Cash Advance companies give out funding to businesses worldwide. They reattain their investments and interest through a percentage of your future credit card income, which can come directly through every transaction. The repayment comes from your customers’ purchases via credit cards on a day to day basis, until the agreed-upon amount is received.
These Merchant Cash Advances are unlike loans, as they take a portion of your future income and so you don’t have to repay the amount directly (like in a loan), rather it happens gradually over your every single sale. The Merchant Cash Advances are not bound by any state, government, or institutionalized agencies as they work independently.
For a restaurant owner, such as you, this is the best way of attaining a restaurant loan without any hassle of a bank or other lending options. The structure has many advantages for business owners as you’d understand as you read further.
Different repayment methods
If you don’t accept your customer payment through credit or debit cards and still wish to get a restaurant loan, you still have nothing to worry about. Merchant Cash Advances can be repaid by using several methods even though the use of credit cards’ percentage is most preferred, but they are as follows:
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Split Withholding:
Split withholding is done when the credit card company splits the sales of credit card automatically between the business and the lending company as per your negotiated percentage amount. This is generally around 10% and 22% and solely depends on the terms of your agreement. As mentioned earlier, this is the most preferred way of re-collecting the Merchant Cash Advance. It is, however, easier, less restraining and less denting on your business.
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Trust bank account or lock box withholding:
In this method of payment collection for Merchant Cash Advance, after you attain your restaurant loan, all of your restaurant’s sales are automatically deposited into a specific bank account. This bank account is controlled by your lending company. The company then extracts the negotiated-upon portion of your earnings and gives back the remaining portion to you with the help of EFT, wire, or ACH. This method isn’t preferred by business as it would lead to a one day delay in you receiving your income.
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ACH withholding:
After you receive your restaurant loan and in terms of your negotiations, the financing company gets all the processing data for your credit card and takes its portion of money directly from your account via ACH, when the Merchant Cash Advance is structured as a restaurant sale. But if the Merchant Cash Advance is structured as a restaurant loan, the financing company deducts a fixed amount of money from your account daily, regardless of your restaurant sales with the help of ACH.
How to get a Merchant Cash Advance lender
This is the easiest part of the process, as you will be able to find as many Merchant Cash Advance financing companies on the internet for your restaurant loan as you would like. Most will follow the general industrial model of guidelines but some would have their own specifications. You can also approach them directly and negotiate on your own specifications to avail the best possible deals you can.
Reasons for getting Merchant Cash Advance over bank loans
Even though the interest rates will be higher than compared to that of the banks, but still Merchant Cash Advance is the best suitable way to get a restaurant loan. And, here are a few reasons for that.
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Hassle free process:
You will find that getting a restaurant loan with the help of Merchant Cash Advance is much hassle free in comparison to bank loans and other forms of loans. As, there are no dozens of agreements and bonds that you need to sign, without the need for any collaterals whatsoever. This not just saves you from losing any valuables but also gives you the full freedom to use the funding however you deem fit.
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The fastest process:
Merchant Cash Advance boasts of having the fastest possible method of getting you a restaurant loan. From the moment you approach a financing company, the whole negotiation process, the signing of the agreement to the actual dispatch of the money only takes a few days as compared to weeks and weeks of waiting time with banks. And unlike banks where you get your loan in installments over time, with Merchant Cash Advance you can get your restaurant loan at once and in full.
As you can see, Merchant Cash Advance will incredibly benefit you to help your baby grow up and become someone bigger, greater, and more successful than you ever imagined. So, strap on, do your research, and get the best possible restaurant loan on your own terms! All the best!