Starting a restaurant seems like a nice business idea until you learn to appreciate that their owners face difficult financial periods like almost any other business. Looking for extra funding for restaurants could be motivated by a number of factors such as modernizing it, expanding it or adding new delicacies, just to keep up with the rising demands and preferences of your clients. A restaurant owner might also need funding to get more employees or even raise the remuneration of  employees.

Merchant cash advance providers are a good source of alternative funding for restaurants due to a number of factors that will be outlined in the article. Merchant cash advance companies normally provide a business owner with a lump sum which is supposed to be repaid using a percentage of their daily credit sales. The rates charged are fixed is based on the daily credit transactions of your business. This implies that you will part with relatively large amounts on days with high sales volumes. On the other hand, you will be left with enough cash to run your restaurant on days with fewer sales.

Here are a couple of reasons as to why you should consider approaching MCA providers to fund your restaurant:

  •    Their prompt nature

The application and approval of a merchant cash advance might need a couple of days. This is in comparison to traditional lenders who might require you to undergo long application procedures besides them taking weeks to months to approve your loan application. For this reason relying on a merchant cash advance for funding for your restaurant is better in terms of its promptness and reliability.

  •    You will enjoy high approval rates

Traditional lenders normally burden one with long application procedures and many requirements and they could even decline your loan at the end. This is quite unreliable for a business owner with pressing needs. It is reported that traditional lenders decline close to 60% of the loan applications they get. A Merchant cash advance provider is likely to provide you with the funding for restaurants that you need due to their high approval rates.

  •    A repayment schedule that is convenient and sustainable

Although it is considered to be an expensive option, merchant cash advance charges depend on how much you make in a day. By deducting a fixed percentage of your credit sales you will be left with enough cash to meet your daily expenses as restaurant.

  •    You don’t need to have any form of collateral

To qualify for a merchant cash advance, you don’t need to provide any form of collateral. This is quite an add-on to their services since you will get funding without bothering about the collateral. It is good to mention that if you have a bad debt history, you can still qualify for a merchant cash advance loan.

The above reason explains why many people think of MCA companies for the provision of funding for restaurants. They are prompt, convenient and simple in the application process. Try them out to better your restaurant or keep it afloat.