In Merchant Cash Advance, Pubs and Restaurants

There are many ways to fund a restaurant business, it maybe a start-up loan for those businesses that are pre-revenue and in the planning stages, it maybe development finance for large scale operations or perhaps a traditional business loan which may require security in the form of your home or commercial business.  In this article ‘Alternative finance for restaurants’ we take a look at non bank lines of funding.

A business cash advance is considered by many to be the perfect solution for restaurants looking to grow.  It works by advancing a similar amount of cash to that of your monthly debit and credit card takings and repaying as and when you make sales.

This offers your restaurant business the flexibility it needs without meeting set monthly repayments.  So, when sales in the restaurant are low for the month you will pay back less, and, when sales are good for the month you’d pay back quicker, in line with those sales.

Things to consider when applying for alternative finance for restaurants

We’ve helped many restaurants find fast funding restaurant loan they need.  To obtain a quote you go through a simple application form which is quick and straightforward.  There is no lengthy paperwork, business plan or projections required, just a calculation of monthly card turnover.

The lender will then give you one single repayment figure – this is calculated by them using a factor rate.  There are no other hidden charges, late or early repayment penalties, just a transparent figure that is repaid only when you make sales.

So how much is taken per transaction?

When you make a sale at the restaurant on card for meals, drinks at the bar and so on you will repay a percentage back to the lender in real-time as the sale goes through the merchant gateway.  This can range but usually starts around 10% of each transaction – this is agreed at the beginning and should offer your business a comfortable repayment plan.  Discuss with the lender an amount that your business would be able to accommodate.  The initial lender discussions are a good time to discuss your options.

We’re helping more and more restaurants on a week to week basis who are finding this type of alternative lending the best solution for their business.  Staycations and the rise in hospitality around leisure and tourism are driving sales in the sector with some businesses needing to grow quickly.  A business cash advance can fund quickly in as little as one or two days after the quote has been obtained.  It has the backing of The British Business Bank Investments who are backed by the UK government.

Restaurant funding is one of the largest hospitality sectors we help.  We’ve also created more information to help restaurants grow and compete such as hints and tips for restaurant owners

We’ve also produced articles on social media for restaurants looking to maximise their online marketing such as on Twitter and Facebook.  We hope you find these related articles useful and if you have please share the content on the links above, Thanks.