When encountering a shortfall in cash flow many restaurant businesses look into obtaining a loan to cover their business expenses. Unfortunately, obtaining regular restaurant loans isn’t easy. Since restaurants are generally considered to be high risk businesses by the finance and banking industry a large part of loan applications get denied. Fortunately for restaurant owners there are more attractive alternatives to traditional restaurant loans.
One of the best alternatives to traditional restaurant loans is merchant cash advances. Merchant cash advances differ from ordinary restaurant loans in numerous ways. Since no collateral and credit history check are required approval rates for merchant cash advances are much higher than that of regular restaurant loans. Money from merchant cash advances is usually available within a week of getting approval. The approval process itself takes no more than a few days.
Another advantage offered by merchant cash advances is the lack of fixed monthly payments. Repayment of the merchant cash advance is made by the lender taking out an agreed percentage of future credit card sales until the principal and lending fee is paid for. This means that on slow months where cash flow is limited payback of the cash advance is also limited to the same degree. This makes it a lot easier for a restaurant to get back on track and establish a strong financial position.
While the fee that comes with merchant cash advances may initially seem high when compared to ordinary restaurant loans, the fact that repayment is variable depending on monthly cash flow coupled with easy eligibility makes merchant cash advances a more attractive solution than ordinary restaurant loans. Consider getting a merchant cash advance for your restaurant business today!