Most likely, your restaurant receives many payments through credit card transactions. Once you apply for restaurant merchant funding, your business will get a lump sum advance in your bank account. Then, you’ll remit a percentage of your credit card transactions going forward to satisfy your obligations. It’s that simple.
So, if you’re contemplating how restaurant business capital could improve your operations, you might benefit from a merchant cash advance
. In this post, we’ll detail why restaurants prosper after receiving merchant funding, and provide guidance on how your business can attain one.
Why Restaurants Benefit from Receiving a Merchant Cash Advance:
1. The Application Process is Simple
If you’re applying for a merchant cash advance from a trusted alternative lender, there will be certain standards. For instance, they’ll want to see your most recent credit card statements. This is to ensure that your business receives enough credit card transactions to successfully utilize and remit this product.
Overall, the application process shouldn’t be too complex. If your business frequently receives credit card transactions, and you run your business in a responsible manner, you’ll likely be a viable candidate!
2. There's A High Approval Rate
If you’re concerned about whether you’ll get approved for restaurant financing, don’t fret. Merchant cash advances have a high approval rate. While getting approved for some financing products is difficult if you have a low credit score, this typically isn’t the case for merchant funding. So, if you’re not confident that you’ll get approved for other financing options, you should consider restaurant cash advances.
3. You'll Have Money to Grow Your Business
Once you receive a restaurant cash advance, you’ll have money to use for whatever your restaurant is currently lacking. For instance, maybe your restaurant’s interior could use some TLC, or you’re frequently understaffed. Ultimately, getting a restaurant cash advance will allow you to invest in areas of your business that need to be enhanced.
4. You Can Use the Funds for Emergencies
Perhaps you don’t have any major ideas for improving your restaurant. Still, you can’t predict the future! What if your restaurant experiences an unforeseen emergency, such as having an oven break
or running out of required inventory? If you receive a merchant cash advance, you’ll have peace of mind and can navigate unexpected twists and turns that come with running a restaurant.
5. There's Flexibility Based on Your Business’s Sales
With restaurant merchant funding, remittance is based on your business’s future receivables from credit card sales. Therefore, if your restaurant goes through a lull in sales, you won’t be expected to remit a set amount. Having a product that works with the pace of your business is a huge plus – and will save you unnecessary stress!
Having a merchant cash advance can help your restaurant thrive. You’ll have financing to put towards achieving your restaurant’s goals
, and can remit your advance at the pace of your restaurant’s sales.
Conclusion: Pursue Additional Working Capital to Grow Your Restaurant
Hopefully, after reading this post, you understand the benefits of a restaurant cash advance, and can start the process of applying for this product. As a restaurant owner, it's crucial that you consider your business's cash flow. If you don't have enough funds to run your business, its future could be in high risk. Due to this, consider a restaurant cash advance, so that you can keep your business afloat!
Editor’s Note: This post was updated for accuracy and comprehensiveness in September 2019.