With cutthroat competition sustaining in the restaurant business, it is not everybody’s piece of cake. The strict market regulations and an ongoing fast-paced trend of innovation and modernization; it gets difficult for restaurateurs to run their businesses. However, for any business, there is nothing more satisfying than a satisfied clientele that comes time and again to savor the culinary delights.
While many businessmen get excited by the glitz and growth potential of this industry, it is not simple to own and operate a restaurant. The industry is constantly evolving, expanding, and is likely to remain a competitive extension market. Thus, experiencing everyday struggles and difficulties to get restaurant financing is extremely overwhelming for the business owner.
In order to succeed and thrive in this industry, restaurateurs need to be social, patient and work hard to pave their way to the top. A food business is a direct connection with the soul, by doing it right, you can make a profound mark on your patrons.
However, everyone who is either associated or running a restaurant know how tricky the industry is. According to a report published by Ohio State University, “60 percent close or change ownership in the first year of business, 80 percent fail within five years.” This is an alarming number – and even after failing, many restauranteurs do not know the reasons behind it. Nonetheless, the industry has grown at a rampant pace in the past few years. There are now nearly 700,000 restaurant owners in the U.S. Despite the success these businesses have; restaurant financing is a challenge for all of them.
Many restaurants have gained immense traction and have become favorites. They also have a packed reservation list at all time. But, there comes a time when they require renovation and replacement to modernize the setup. When you are in the eatery business, there are no guarantees that your restaurant would not require funding from external sources.
Competition is not the only thing that would hamper the progress of your restaurant business. A financial turmoil also has a huge impact on your working capital. The economy also plays a vital role in a successful business might take a hit if it takes away consumers from spending on restaurants. As a smart businessman, you should not only rely on the money coming in from customers because sometimes it is not enough. You have to think about alternative restaurant financing options at some point to cover your day to day activities and expenses.
An immediate funding can save your operations, consequently, help your business grow and expand. Recently, Merchant Cash Advance (MCA) has proved to be a perfect solution for many restauranteurs due to several reasons. One of the biggest advantages of MCA is that you get quick access to funding without having to go through much hassle. MCAs help you eliminate the lengthy procedures of conventional loaning options that you needed to get approval. It also removes the trouble of completing lots of paperwork.
Why Merchant Cash Advance For Restaurant Financing?
Are you skeptical about why you should not go for a small business loan for your restaurant? Why cash merchant advance a better solution? Will it help you and your business in the long run? It is safe to say MCA is the better option as the funding amount that you can get for your restaurant business is higher than what conventional loan providers would offer. The process is also easier thus restauranteurs prefer MCA over small business loans. Merchant Cash Advance lenders offer an amount that is as much as 1.25-1.5 times the credit card sales over a specific time period.
When it comes to repayment, MCA also provides flexibility as you will repay the lender in accordance with the future credit sales that have occurred. This eliminates the need to be concerned about monthly payments and last due dates.
Benefits of MCA for your restaurant financing needs
Many MCA lenders state that restaurants take advantage of merchant cash advance financing more than any other business. Why? These businesses are well positioned to take utmost benefit of MCA product as owners sometimes have to get quick access to working capital to be able to keep up with the sudden market shifts. The funds are used to grow and improve the business.
With MCA, you are guaranteed to get fast cash easily in exchange for a share of future sales. You do not have to worry about going through long procedures. Even if you have a bad debt or credit history, MCA will allow you a lump sum payment for your business.
Are you interested in knowing more MCA benefits? Keep reading!
- Streamlined Application Process: Did you get tired filing paperwork and collaterals to get approval for your loan? With Merchant Cash Advance, you do not have to worry about going through a tedious process. MCA providers do not go into any financial details to approve your application such as financial statements, tax returns, and more. Only your future credit card sales, monthly credit card returns, and the number of months/years you have been in the industry is evaluated – it has become that simple!
- High Rate of Approvals: Merchant Cash Advance providers do not make decisions on your credit score or debt history. They evaluate your business performance which is why there is a high approval rate for restaurant financing if you choose MCA. Any solid business is guaranteed to get 1.5 times more funds than conventional loaning options.
- Collections Based On Revenues: MCA offers the most flexible repayment terms – they collect the dues based on the percentage. You do not have to pay a fixed amount every month. This way, if the season is slow and your restaurant has a slower month in sales, you will repay less than during a high sales month. You will have peace of mind as MVA lenders give you time and space to build up your business.
- Base Entry Bar Kept Low: Your restaurant financing application is more likely to be accepted by an MCA provider. Conventional loan providers are reluctant in offering funding options to those who operate a high-risk business in a high-risk industry. Restaurant owners will have to demonstrate strong credit if they want to get approval for a small business loan. This option is more difficult for those who are new and recently entered the eatery business. They usually do not meet commercial lender credit qualifications. Thus, MCA is the perfect solution as there are no such qualification criteria.
- Fast Turnaround Time: Keep in mind that small business loans take weeks and months to clear if your application is approved. With MCA, there is a fast turnaround time as it takes a week or so to clear the funds.
It is the best financing solution available in the market for your restaurant using which you can take care of the following:
SUSTAIN YOUR EMPLOYEES
The quality of food you serve to your customers is important. However, excellent customer service is something that will differentiate you from your competitors. You can maintain your employees so that they can provide an excellent dine-in experience whenever they visit your restaurant. Due to cutthroat competition, the need to employ and sustain best managers, servers, staff, and chefs is more than ever. And, MCA will provide the needed working capital to help you cover such expenses.
MAINTAIN, PURCHASE, REPAIR, OR UPGRADE YOUR ASSETS
There are instances where there is a need to make necessary changes in your business. It could be to upgrade your restaurant’s theme, maintain your equipment such as stoves, purchase new cutlery set, or repair the roof. All of these will have a positive impact that will boost the quality and efficiency your business. A sufficient working capital in the form restaurant financing will help you stay ahead of the curve.
KEEP YOUR INVENTORY WELL STOCKED
It is important that your restaurant business has a well-stocked inventory. It creates a negative impression if one of your favorite customers need something that is not available due to a limited budget. Merchant Cash Advance allows restaurant owners to keep their inventory well stocked at all times. They certainly would not want to feel embarrassed by refusing a customer their favorite meal. Thus, a better inventory will help you run your business efficiently.
ENHANCE YOUR MENU
Every restaurant has a signature dish that drives the majority of the customers. But, there is a need to keep enhancing and improving the menu after a while. Do not rely on a couple of signature dishes only. Maintain a diverse menu so that you can offer more options to your customers. Enhancing a menu could mean hiring a new chef(s), purchasing new equipment, or acquiring extra inventory. MCA restaurant financing will cover the costs involved to revamp your menu selection.
Merchant Cash Advance – A Restaurant’s financing Solution!
In order to process your restaurant’s day to day operations, you need working capital which can be acquired from Merchant Cash Advance. As compared to other alternative lending and conventional loaning options, MCAs offer convenience and reliability to businesses at the time of need.