To run a successful restaurant business, you have to face various challenges. A large number of restaurateurs in the US face financial shortage for running their food businesses. One of the best funding options for your restaurant business is merchant cash advance. It can help you in starting as well as expanding your food business. Merchant cash advances are quite different from the traditional bank funding programs. These are a purchase of future credit card sales. Unlike traditional bank loans, merchant cash advances are comparatively easy to obtain. Besides, you do not have to wait for a longer period of time to secure a merchant cash advance. Today, many restaurants across the United States are witnessing decent success by securing merchant cash advances. The merchant cash advance industry is growing rapidly because the traditional banks are not meeting the needs of small restaurant businesses.
Restaurant Business Expansion
Merchant cash advances can help you in expanding your food business. It can help you remodel your eatery and attract more customers.
Purchase Restaurant Equipment
This type of funding can help you in both purchasing as well as equipment for your restaurant kitchen. It can also help you develop a better POS (Point of Sales) system for enhancing your business efficiency.
Advertising and Promotion
In case you are short for cash for advertising and promoting your food business, a merchant cash advance can be a viable funding option for you. You can a merchant cash advance loan for rigorously advertising your food business to attract more customers as well as for promotion events in your restaurant.
Most importantly, this type of loan can boost your business cash flow and can help you deal with unexpected business expenses.
Advantages of Merchant Cash Advances
There are certain advantages of business or merchant cash advances. A business cash advance lender provides restaurant-owners a sum of cash advance up front. It is a convenient source of funding for restaurateurs. A restaurateur needs to agree to repay the principal amount along-with a fee, by giving the lender a daily percentage of their visa and master card sales till the time the payback is completed. The daily repaying percentage usually does not exceed 10% of your daily gross sales. Your daily percentage is calculated on the basis of monthly credit card sales volume and the amount of cash advance required. The stipulated period of time for the repayment is around 6-9 months. However, it is not fixed and you do not have to face any penalty if you take a longer duration.
Unsecured merchant cash advances are ideal for retail and restaurant businesses because of the instant liquidity and easy application process.
Author: Robin Clark
Robin Clark holds advanced degrees in financial management and corporate finance. He is very well-versed with the nuances of modern day business financing including SBA restaurant loans. He holds immense expertise in writing articles and blogs on restaurant business loans