Whether you’re gearing up for the busy season, preparing for the slow season, looking to add a new location or to increase your efficiency with new equipment, having cash on hand is critical to the success of your restaurant.  The quickest way to get that cash is through a merchant cash advance, or an “MCA”.  Unlike a loan, which is based on interest and has rigid repayment requirements, an MCA is based upon a payment plan determined as a specified percentage of your sales. An MCA offers a fast and flexible alternative for getting the funds you need to run your restaurant. 

The application process for a traditional loan can be complicated and time-consuming, taking weeks or even months to sort through seemingly endless red tape and uncertainty. But an MCA can provide you with funding as quickly as the day you submit your application.

Top 6 Advantages of an MCA Over Other Funding Alternatives

1) Immediate Deposit of Funds Directly into Your Bank Account

Consider the following scenario: Last month was a little slower than usual, and you’re heading into the holiday season. You have solid cash flow, but are in need of a bathroom repair, a new cooler, a menu redesign and printing, a hood and grease trap cleaning…the list is long.  You just need to get ahead, now. With a merchant cash advance, funds can be deposited into your checking account within 24 hours, giving you access to the resources you need, right away.

Cash in your bank account within 24 hours.

2) Easy Application Process

The average bank loan takes 30-90 days to process from the time the application is submitted to the funding is received. You will have to provide a tremendous amount of documentation, then review and sign complicated agreements in a long and drawn out back-and-forth with the bank before ever seeing a dime (or even knowing whether the loan will be approved). The process of gathering documents alone can take weeks and can be a frustrating experience for you and your CPA or bookkeeper. Unlike a traditional loan, the process of applying for an MCA is simple and streamlined. After speaking with one of our expert team members, your merchant cash advance application will be processed in about 8 minutes. Boom– in, out, done!

Takes about 8 minutes, start to finish, boom– done! 

3) You Decide How to Use Your Funding

As a business owner, people are always telling you how to spend your money.  ‘Hey, you know what you should do with your restaurant?’  And you’re probably also tired of the constant loan offer solicitations.  Small Business Association loans and local economic development loan programs often come with lending restrictions that prevent you from determining how to apply the money you borrowed to best run your business. We, on the other hand, offer merchant cash advances for $10,000, $250,000, up to millions of dollars, and how you use that funding is totally up to you! 

Use the money however you decide!

4) Does Not Impact Your Assets or Your Credit Score

You have taken on enough risk in starting your own business. With an MCA, you won’t have to place your assets or credit at risk in order to obtain the funding you need to operate successfully. Unlike a traditional loan, you don’t need a high credit score to be approved for an MCA, and your assets will not be used as collateral. Rather, an MCA is an advance on your business’ future sales.

No risk to your assets or credit!

5) You Control Your Repayment 

We know that it takes a village to run your restaurant. Your village includes chefs, bartenders, general managers, front of house staff and back of house staff. You need the flexibility to repay your cash advance while keeping all of the components of your business running smoothly. An MCA allows you the freedom to choose from the following repayment formulas:

  • Fixed daily or weekly rate; or
  • Percentage of daily credit card sales

On average, over 80% of a restaurant’s revenue comes from credit card sales. As a result, the “credit card split” is the optimal repayment formula for most restaurants.

You choose your repayment formula!

6) Funds Provided in One Lump Sum 

As a restaurant owner, you’ve taken your fair share of lumps. Sleeping in the chef’s office between shifts, covering for the dishwasher who called in sick, handling an irate customer complaining about the temperature of a steak– you’ve been there for your business. Well, now it’s time for you to take another lump–a lump sum of money. A merchant cash advance is paid all at once, into your bank account, providing you with all of the funding you need, right when you need it. Can you imagine what you could do for your restaurant if you had $250,000 deposited in your business bank account tomorrow?

Now it’s time for you to take another type of lump, a lump sum of money.

Now you are well on your way to making an informed decision about applying for an MCA.  We are available to answer any additional questions you might have about merchant cash advances.  One of our team members will guide you through the application process, determine whether you qualify, and provide you with the funds you need to finally add that wine list you’ve always dreamed about!