It requires capital funding in order to successfully expand any business. Restaurants are no exception. Without a business loan or cash advance to build out and add dining capacity, potential profits for restaurant owners are simply limited.
In the past, restaurants looking to expand would seek traditional business loans or financing from banks. While these expansion loans from big banks are still a viable solution, the lengthy approval process and generally inflexible terms are a turnoff for some merchants.
The good news is that there is now an alternative to a traditional business loan that allows restaurants to receive the financing they need fast and easy! This solution is known as a merchant cash advance.
Merchant cash advances are ideal for businesses like restaurants because funding is based on monthly credit card sales, and not backed by the business’s assets.
Traditional business loans have fixed monthly payments. With a merchant cash advance, monthly payments are determined by a set percentage of monthly credit card sales volume. This fluctuating repayment schedule is preferable for restaurants, as it does not eat up all cash on hand during slow months or seasonal sales droughts.
Unlike loans or financing from banks with strict terms, merchant cash advances offer flexibility in use of funding. Restaurant owners can use the cash for any purpose; whether that be building a new location, expanding an existing restaurant or purchasing new equipment.
Approvals and funding for merchant cash advances for restaurants is quick. After an approval, cash advance financing can be received in as little 3 business days.
If you’re interested in learning more about a merchant cash advance for your restaurant or other services such as credit card processing, give us a call!
At The Transaction Group, we’re dedicated to helping businesses of all types with business financial services. We look forward to helping your business succeed.