The restaurant business is a tricky industry where the sales keep changing with the change in the season. If you are into the restaurant business, then you should be aware of highs and lows of the business and arrange the finances for the business to run smoothly in every season. The company should be prepared to handle the peak sales period. Stock the inventory, hiring temporary employees and expanding the seating, etc. may be required which needs more working capital.

Funding For Restaurants – Several Funding Options Available

There are several funding options available for the restaurant business owners the funds from which can be used for various reasons which include

  •    Paying unexpected expenses such as buying new equipment or a license fee
  •    Expansion of the restaurant with added features
  •    Hire temporary employees for the peak sales period
  •    Meet the expenditure of payroll and other things during peak sales period
  •    Creation of website for online ordering and advertising the restaurant
  •    Launch of the second restaurant in different location to meet the customers increasing demand
  •    Update and maintain restaurant interiors and furniture

The restaurant business is a dynamic industry and has particular needs.

The nature of the food industry is different from that of others, and these companies can provide dining to few people to more than hundred people. The restaurant businesses are often turned down by the traditional lending sources due to the uncertainty of sales. However, with the changing market conditions, many lending institutions and non-bank lenders are interested in lending to restaurant owners at competitive interest rates.

Today there are various finance options available restaurant owners with products such as traditional bank loans, unsecured loans, merchant cash advance and other capital infusion options. The traditional bank lending for restaurant business has their limitations such as cost involved, lengthy approval and time-consuming process which are turning away restaurant owners from applying for these loans.

The funding options available for restaurant owners help rescue restaurant business from the financial crunch. Unsecured loan advances provide restaurant owners fast funds in little time as possible at competitive interest rates.Traditional bank loans are time-consuming and involve long procedure of filling lengthy applications, weeks of waiting to know the approval of loan and weeks of months time for the funds to be received by the borrower. Whereas non-bank lenders note that restaurant owners do not have time to wait long to avail funds and the loans offered by them can be availed easily in just a few steps.

Merchant cash advance is a viable option for restaurant owners

Merchant cash advance is a viable option for restaurant owners as they can be easily availed based on the sales history and future sales through debit/credit card. The business receives a lump sum amount as an advance for the future receivable sales. The future sales are sold to the lender at a discounted price and needs to repay in a stipulated time as a percentage of daily merchant debit/credit card sales. The owner gets to decide what to do the funds that are advanced by the lenders.

If you are wondering whether Merchant cash advance is the best option for your restaurant business, then it is advisable to know how cash advance from lenders is different from traditional bank loans and how can a business benefit from these unsecured loans. Although there are several funding options available for restaurant owners, it is advisable to evaluate and analyze your finance requirements before you consider to apply for one.