If you are the owner of a restaurant than you know how difficult restaurant loans can be to come by. This is especially true if you lack viable collateral or have less than stellar credit. The loan process can be long and stressful and represents a huge delay in your business gaining access to some much needed cash. Fortunately for you and other like you, there is an alternative to loans that is fast growing in popularity.
Merchant cash advance providers have been up and coming in the past ten years or so. They are making a new name for themselves however as the current credit situation makes it necessary for small business owner to seek out new options. These providers have a high reputation for offering easy access to much needed cash while making it relatively hassle free to repay.
There are quite a few advantages that merchant cash advances have over the typical business loan, namely those intended for restaurants. They are a quick source of funding that can be had even when the merchant has no real collateral. They are easy to get and require far less documentation and footwork than the usual loan process.
In exchange for a small percentage of your future sales your restaurant will get a nice lump payment. These work best for restaurants that really don’t have collateral to back up the loan they need, or who may have a bad credit history. Because of the repayment options, businesses can stay on top of payments even during seasons when profits come in slower than usual.
Usually with loans there is a strict repayment schedule. The payment amount is set as is the duration of payments. With the merchant cash advance the company has no set monthly payment, instead they simply use a percentage of their total sales for that period as repayment. For companies that do not boom year round this is great news. During slow months the payment will be naturally lower, while in busier months it will rise proportionately.
Merchant cash advances are really not like loans. They are not highly regulated as of yet and the repayment schedule is certainly far more flexible. They should however be treated as loans, as restaurant owners will ultimately have to pay these back plus interest. This makes it necessary for interested parties to research the best providers of these advance to get the best possible deal. This can be accomplished by searching online and reading the reviews and ratings of providers that spark interest.
Are you really in dire need of takeaway or restaurant financing? Get the ultimate inside scoop now in our restaurant loans overview.