Merchant Cash Advance: An Excellent Choice for Restaurant Owners

At Merchant Cash Advance Nation, we understand that all small businesses must be able to compete in an increasingly cutthroat market. While we extend cash advances to many types of businesses, we have found that restaurants are a particularly good match for our products.

 

Why are restaurant owners the perfect merchant cash advance customers? The easiest reason is the simple fact that everyone needs to eat. While the case could be argued that not everyone needs to eat out, a significant number of people go out once or twice a week, either because they are working long hours and don't have the time or energy to cook, because they're not inclined to bring a lunch to work, or because going to a restaurant is a way to combine basic nourishment with socialization.

 

Restaurant owners, on the other hand, must constantly be able to balance the need to keep regular customers happy with the need to attract more diners. They know the ebb and flow of seasonal business more intimately than any other customer driven retail establishment, and they must be able to adapt to new trends in order to maintain and grow their businesses. 

It is this combination of things that make easy access to working capital essential. It is the accompanying high risk of failure that makes banks averse to offering business loans to restaurant owners.

 

 

It's easy to see why restaurants need the liquid capital cash advances can provide, but why does this type of financing work so well for these types of businesses? Here are four reasons:

 

1.      High Approval Rates:  At Merchant Cash Advance Nation, roughly 90% of applications are approved for funding, and other providers tout similar approval rates. When banks are quick to say no to restaurants because of the inherent risks, cash advance providers are apt to give a fast yes, instead.

 

2.      Minimal Documentation: Merchant cash advances don't typically require credit scores or stacks of paperwork. The application forms are simple, and the restaurant owners must simply demonstrate that his or her business is doing a significant volume of credit card sales. As well, merchant cash advances providers don't ask for collateral, because non-payment is not an option.

 

3.      Fast Turnaround Times: The average merchant cash advance is approved within 72 hours, with funds disbursed within seven business days. There's no extended time in limbo waiting to find out if you'll have the money to do what your business needs.

 

4.      Payments are Based on Actual Sales: Restaurants, more than any other business, have sales flow that continually rises and falls. Because merchant cash advance payments are based on a percentage of daily credit card sales, a slow week won't mean straining to make a fixed payment. Because those payments are taken automatically, skimmed off the top of credit card sales during the processing period, there is no way for restaurant owners to ever miss a payment. If the business is running, payments are being made.

From these points, it should be obvious that a restaurant owners who needs funds to update new equipment or appliances, remodel or modernize the décor, open an additional location, increase their marketing reach, or even just meet payroll during a particularly slow period, should consider a merchant cash advance for their working capital needs.

 

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