Most of the restaurants are small businesses which require financial boosts from time to time. Funding for restaurants could be for purposes of meeting their working capital needs, for expansion and at times for undertaking an upgrade. The alternative lenders have given a priority to small business owners such as restaurant who can hardly access loans from the traditional lenders such as banks. As a restaurant owner, you can thus approach a merchant cash advance provider to provide you with funding for your restaurant.
Merchant cash advance companies have gained so much popularity in the recent past due to how they handle the needs of their clients, especially the small business owners. They are quite prompt in providing funding, and their response and issuance of cash advances takes days as opposed to weeks and months which have been characteristic of the traditional lenders. The application process for their loans is quite simple and easy to follow and you can check the internet for the various MCA providers.
You will enjoy a high approval rate for your requests of funding for restaurants when you opt for merchant cash advance companies. There are some MCA companies which have specialized in providing merchant cash advances to restaurants. These have a better understanding of the dynamics faced when running restaurants and they will be more responsive to your request for external funding.
Since part of the daily credit sales will be used to repay the loan, your restaurant needs to accept credit or debit cards for settlements of transactions with your customers. A fixed percentage of the daily credit sales will be deducted from your earnings to repay the loan. The implication of this is that you will remit higher amounts on days characterized by high sales volumes while those days with fewer credit sales will leave you with enough cash to run your restaurant. Based on this, you will agree with me that this is a more sustainable form of repayment as consideration is given to the performance of a business in a given time period.
To qualify for a loan, you will need to provide a few details of your restaurant business. A financial statement of your business should be provided together with a summary of your credit sales in the past as well as an estimation of your future credit sales. You won’t need to provide any form of collateral to get funding for restaurants from the MCA providers and having a bad debt history shouldn’t deter you from making a loan application.
Merchant cash advances are a suitable source of urgent funding for restaurants. The application process is simple and less tedious and you will enjoy higher approval rates. You can thus approach them when you want to capitalize on a new business opportunity or for purposes of expanding your business to meet higher demands. The repayment schedule is sustainable and you will be left with enough cash to run your business during the repayment time.