Now that you’re starting your restaurant business, you’ll need to make sure that you have the appropriate funding for equipment, supplies, and of course, the edible items that you’ll sell to your customers. A merchant cash advance for restaurants is one of the best financial options, but you’ll need to know how the process works before you start the application process.
Quick process: you’ll get the funds you’ve request in about 72 hours
One of the best things about the merchant cash advance for restaurants is that the process is quick. Most of the time, you’ll get the funds you’ve request in about 72 hours. There also isn’t a fixed payment amount, which definitely comes in handy when you’re running a restaurant. As you’ve probably figured out, the day to day operations of the restaurant business means that you’ll make different amounts in profit each day. If you get a merchant cash advance, you’ll pay the advance back based on your credit card sales. You also won’t have to put up any collateral to get approved for a merchant cash advance, which means you can operate your restaurant without having to worry about the possibility of losing your valuable equipment. You’ll also get free equipment for processing your credit cards to ensure that each card-related sale goes smoothly. On the low end, the merchant cash advance is about $5,000, but you can get up to $750,000 for your restaurant.
Another option: crowfunding
Of course, there are other options for financing your company as well. If you have active social media accounts for your restaurant, it may be a good idea to consider crowdfunding. This way, you can request that each donor gives you a few dollars, and the total amount will add up quickly since one person is not expected to present you with a large loan amount. In addition to the merchant cash advance for restaurants you can apply for, you can also request that friends, family members and customers who visit your restaurant often donate to your crowdfunding efforts. In order for this funding option to be especially effective, you should give donors a free or discounted gift for financially contributing to your business.
Angel Investors can also help
Keep in mind that angel investors can also help you to keep your restaurant running. These investors normally have thousands and sometimes millions of dollars to invest in your business, which is why they typically ask for 20-25% of company ownership until the amount of the investment is repaid. Be sure to research investors thoroughly before making this choice, and be clear about your financial goals so that you can provide a convincing presentation to the investor.
Invoice factoring is an option for restaurants
Invoice factoring is another option for restaurants, especially if you outsource some of your goods or services to other business, or cater events. When you send an invoice to a customer and the invoice is not paid in a timely manner, invoice factoring will advance you the amount of the invoice, so you can keep your business running smoothly. Once your customer pays the invoice, you return the money to the lender.
While all of these funding methods could help your restaurant grow, it’s a good idea to contact your financial advance to see how well merchant cash advance for restaurants will work for you. You can get started today to have the funds in your business account in just a few days.