Food business owners especially restaurant owners really need urgent financing so that they can respond to market changes, stay ahead of the game and continue invest in the growth of their food business. But even if new restaurant owners have a good idea and laid out profitable restaurant business plan, many banks are hesitant to grant business loans. Why? Unlike other non-food businesses or retail businesses, restaurant business has high failure rate. This is a big reason why many banks don’t like doing restaurant financing especially those who have low credit scores.
Getting funding from a bank can be difficult for restaurant owners because of the strict requirements they impose upon potential borrowers. Banks require that restaurant businesses pledge serious collateral or have a high credit score in order to be approved for a loan.
Best Alternative Financing Solution
Small business owners who are in dire need of financial help but can’t get business loans from the banks can apply for financing assistance from merchant cash advance companies. These companies are willing to extend merchant cash advance that can be used at your discretion. It can be used to quickly open a restaurant business, finance business cash flow, buy new kitchen equipment, dining utensils and appliances, expand restaurant area and others, as long as it will help in growing the business.
Applying for a restaurant advance from mechant cash advance company is a guaranteed way to see restaurant business grow and to provide cash needed to take the business to the next level.
Cash advances (also known as credit card factoring) can really help restaurant business. If food service business already has been open for at least 6 months and accepted credit cards, they are already qualified to apply to receive this type of funding for their business. They can still be approved even if they have bad credit. The cash can be given usually between 4 and 7 business days but sometimes even less.
Restaurant advance is easier to obtain compared to a restaurant loan because restaurant owners can substantiate their ability to pay back the advance by handing over their credit card sales history as essential collateral to their future transactions. They will need to have a decent credit score, but not nearly as perfect as it must be for a bank loan. Repayment will be tied directly to their restaurant’s future merchant account transactions as a percentage of credit card sales brought in each month.
Easier, quicker and more suitable for a new business, a merchant cash advance may be the ticket to help restaurant business down the road to success. Gone are the days of waiting weeks for the bank to tell you your applications was rejected. With merchant cash advance, you can get the capital you need easily, quickly and without the hassle.
With these, restaurant owners need to start using their merchant credit card account to start building credit card transactions so that the credit card machine will become a tool to easily get quick money for any financial need that may arise in growing the restaurant business.
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