Business Guides

How Restaurants Can Benefit From Merchant Cash Advance Options

Last updated on May 26, 2021

As a restaurant owner, you need financial options to keep operations afloat. While having enough cash-on-hand to sustain day-to-day operations and grow is the ultimate goal, it’s unfortunately a pipe dream for many. You need flexible and reliable funding opportunities like merchant cash advances to sustain working capital, purchase equipment, and effectively navigate the ebb and flow of restaurant ownership.

If you’re looking to get funding from traditional institutions like banks, you may be swimming upstream. Restaurants and the dining industry as a whole is an incredibly risky business venture, something you know all too well. Even if your profits are sound and you’re not having any major issues — you may find loans or funding options limited. Alternative financing options like merchant cash advances provide a reliable and fast route to cash flow that you can take advantage of right away.

We’re going to show you how your restaurant business can succeed through merchant cash advance financing. Here’s a quick breakdown of what we’ll discuss:

  • A merchant cash advance is a fast way to get the restaurant financing you need
  • You can use funds from a merchant cash advance however you need
  • The application for a merchant cash advance is quick and painless
  • Even if you have poor credit, you can get approved for an MCA
  • Repayment is flexible and easy with MCA financing
  • A merchant cash advance is the perfect financing solution for emergency spending

How Does a Merchant Cash Advance Work?

When confronted with the nearly endless wave of financing opportunities, you may wonder: “why an MCA?” You’re certainly not alone. The most basic answer we could give restaurant owners is that it’s the fastest way to get the cash you need for your business. Unlike loans which have long and somewhat tedious application processes with products based on interest and strict repayment schedules — an MCA takes a different route.

A merchant cash advance uses a payment plan that leverages an agreed upon percentage of your sales for payment. It’s a flexible and fast option that many in the restaurant industry take advantage of. When you need to calculate working capital and prepare for the unknown, you need a flexible solution you can trust.

Why You Should Get a MCA For Your Restaurant

Quick & Easy Access to Funds

One of the primary reasons why so many restaurant owners rely on merchant cash advance options is the accessibility and speed of funds. Whether you’re having a slow month or you’re in an “off-season” — there will be times where immediate spending is necessary. This spending could come in the form of a repair, inventory upkeep, menu redesigns — you name it. Regardless, you’re in a position to get ahead of day-to-day needs and prepare for the incoming high-season. A merchant cash advance allows you to get the cash flow you need in 24 hours so that you can work on immediate needs —fast.

Spend How You Want

While many bank loans and business loans come with lending restrictions that determine how you can utilize funds, a merchant cash advance doesn’t come with strings attached. If you need to use it for new restaurant machinery, that’s great. If you need to work on marketing materials, that’s fine too. The use of funding is completely in your hands with no lending restrictions.

Headache-Free Application Process

Another reason why merchant cash advances can benefit your restaurant operation is through a quick and easy application process. This restaurant business world never slows down, which means you’re constantly moving at break-neck speeds to keep up. Bank loans and other funding opportunities will leave your head spinning with tedious and time-consuming loan applications. A loan from the bank can take anywhere between 30-90 days after an application is submitted. From there, you’ll need to supply mountains of documentation, undergo review processes, sign complex agreements, and deal with a possibly drawn out back-and-forth with the lending institution.

You need to focus on your small business. That means you need a streamlined financing option that doesn’t take months to process. A merchant cash advance provides you with a seamless application process that can get you the cash you need in just one day.

Bad Credit, No Problem

Unlike most loan options and traditional funding products, a merchant cash advance doesn’t require a high credit score for approval. Additionally, you won’t need to risk your credit score by borrowing capital. Many small business owners in the restaurant industry struggle to find funding due to a less than stellar credit history. When times get tough and you need cash on hand to purchase food, upgrade POS systems, dining equipment, and other restaurant needs — a merchant cash advance offers a way to leverage credit card sales for instant capital.

Flexible Repayment

If we were to line up all of the funding options you have available, a merchant cash advance would certainly win the award for being most limber. It’s a flexible solution that allows you to repay the advance while maintaining day-to-day operations. You can choose between:

  • Fixed daily rates
  • Fixed weekly rates
  • Percentage of daily credit card sales

The restaurant business lives and breathes credit card sales, which means you can take full advantage of ongoing operations to fulfill your funding needs. This credit card split allows you to easily navigate cash flow projections and maintain operations to grow effectively.

Fund Emergencies

If there’s one industry that requires emergency spending, it’s the restaurant industry.  Unpredictable seasons, malfunctioning equipment, inventory management, changing trends, and sometimes high turnover rate are just a few of the many reasons why emergency capital is needed. However, this cash can also go into expanding or improving operations. You need peace of mind through reliable and fast access to cash when you need it most.

As we’ve mentioned, other business loans lack the key advantages that a merchant cash advance offers. Primarily: speed, ease, and flexibility.

Merchant Cash Advances For Your Restaurant

If you’re looking for reliable and fast merchant cash advance options for your restaurant, AdvancePoint Capital can help. We offer straightforward and quick access to the cash you need for your restaurant. Whether you’ve been denied for a loan, you’re tired of looking for a loan, or you know you won’t qualify for a loan — there’s always other options. With AdvancePoint Capital, you will get approved in minutes and be well on your way to the cash flow you need.

Contact us today or get a quote through our easy quote-finder. We’ll get you approved and put your restaurant in a position to succeed. We also offer a wide range of business loans for restaurants to help with other ventures or avenues for funding, including equipment loan options.

* All loans made by either WebBank, an FDIC-insured Utah industrial bank, or Bank of the Internet Federal Bank, an FDIC-insured federally chartered thrift located in California. In connection with the loans, the Banks' underwriting conditions and terms apply.