Managing cash flow is one of the most difficult parts of running a restaurant. Whether you are trying to open a new location, cover expenses during a slow season, or deal with unexpected costs, it’s always important to have access to working capital. For many restaurants, it can be difficult to obtain a traditional bank loan, and the process of applying for a bank loan can take too long. For these reasons, alternative financing is a great choice for many restaurants, and a merchant cash advance may be the best option to give your restaurant’s cash flow the boost that it needs.
Should you explore a merchant cash advance for your restaurant?
A merchant cash advance (MCA) is an alternative to a traditional bank loan that can be a great option for a restaurant owner to manage cash flow. With an MCA, a restaurant will receive a cash advance to help their business. This advance will be paid back through an agreed-upon, reasonable percentage of daily credit card sales. You can be approved for an MCA without a perfect credit history or collateral to offer, making it far more available than a bank loan. Applying for an MCA is quick and easy. With CFG Merchant Solutions, you can be approved within 24 hours, and receive funds soon after! A merchant cash advance is a great way to get funds fast; now, let’s take a look at some of the ways that an MCA can help your restaurant.
Managing Cash Flow Fluctuations
For restaurants, cash flow fluctuates seasonally. Business can be strong during the summer or holiday season, and slow down at other times of the year. Unfortunately, restaurants still have expenses during the slow seasons, such as food, electricity, and wages. An MCA can improve your cash flow and allow your restaurant to cover these costs even business is slow. A merchant cash advance is a good option for a business that experiences seasonal cash flow fluctuations. Due to the flexible payment schedules and no fixed maturity date.
Merchant Cash Advances Can Provide a Financial Safety Net for Unplanned Expenses
Unexpected expenses, such as a broken oven or refrigerator, unfortunately do occur and can be catastrophic for a restaurant. Not only are they expensive to repair, but broken equipment hurts cash flow. When they are not working, your restaurant is not making money, so they need to be fixed fast! You can get approval and receive funds by an MCA much faster than through a traditional funding source. Meaning your restaurant can get back on track as soon as possible. With a merchant cash advance, your restaurant can quickly recover from an unexpected cost.