Merchant cash advance has become popular among small businesses, including the restauranteurs, due to its quick funding, easy application, minimum requirements and paperwork to get the loan. Hence why merchant cash advance is very popular for restaurants who need a quick, flexible and reliable source of capital.

With this growing trend of getting merchant cash advance for the restaurant business, one would wonder, should their restaurants get merchant cash advance loans too? If so, when is the right time to get them?

Here are a few situations where it would be the right time for a restaurant to get a merchant cash advance:

When You Are Short on Liquidity & Available Capital
The availability of liquid assets on the early stage of the business is necessary for restaurants. Based on studies conducted on the restaurant industry, it was found that many restaurants failed within the first year of their business due to lack of liquid assets and capital.

Hence why getting a merchant cash advance in the initial stage of your restaurant business will help to grow your restaurant. You can use merchant cash advance loan for many purposes such as upgrading your cooking equipment, renovating the kitchen, purchasing new utensils, or hiring qualified cooks, with the end goal of growing the sales and profit of your restaurant.

When You Need Emergency Capital
In the restaurant business, sometimes you cannot avoid major catastrophe or accidents, such as fire, gas leaking, or equipment failures. These type of conditions might put your restaurant in a quick need for emergency short-term capital from a reliable source. Traditional banks will not be able to help your business. Hence why seeking capital from merchant cash advance would be the ideal solution for restaurants in this type of situation.

The flexibility nature of a merchant cash advance makes it easier for restaurants to get emergency capital, as long as your restaurants can guarantee to have steady cash and remittance revenue.

When You Need a Reliable Lending Partner
Having an access to capital would be great for a restaurant. More capital will give your restaurant business the ability to respond to industry trends, consumer taste, or any type of improvements which will help you to compete with the other restaurants. However, if your restaurant is within the category of small sized businesses, it will be difficult for you to get funding from traditional financial institutions. Getting a reliable lending partner for your restaurant is almost impossible nowadays if you are relying on traditional banks.

Here is where getting merchant cash advance would be beneficial for your restaurants. With merchant cash advance as your lending partner, the institution will work together with you to ensure that your restaurants will grow sustainably because they need to ensure that your business will be able to repay the loan.

So the next time you think you need merchant cash advance for your restaurant, or considering to get a merchant cash advance loan, analyze first exactly why you need to pursue one, to ensure your loan will be effective and profitable for the future of your restaurant.