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Why Restaurants Should Consider Merchant Cash Advances as Working Capital Solutions

The restaurant industry is fiercely competitive and often unpredictable. With ever-changing customer demands and the need to stay ahead of the curve, it can be difficult for restaurants to find the financial flexibility required to make urgent changes. Leveraging merchant cash advances is one reliable way to gain fast access to the required capital that lets you make necessary adjustments to your approach.

Merchant cash advances (MCAs) offer an alternative to traditional small business loans, providing restaurants like yours with expedient working capital solutions. When you secure a lump sum of money, as in a cash advance, you can finance your operations without waiting months for your customers to pay their invoices.

New Jersey Merchant cash advances let restaurants make necessary improvements and upgrades, purchase new equipment, and hire additional staff to support their expanding operations. The repayment process is flexible and tailored to your business. The custom solution ensures that the merchant cash advance is manageable enough for your restaurant and you don’t take on too much debt.

In this article, we’ll cover why restaurant businesses like yours should consider a merchant cash advance as a dependable working capital solution.

What are merchant cash advances (MCAs)?

If you’re a restaurant owner exploring alternative financing options for your business, a merchant cash advance (MCA) is always an effective solution. A merchant cash advance is a type of financing that allows you to access capital quickly in exchange for a fixed percentage of your future credit card sales.

When you opt for a New Jersey merchant cash advance, you will receive a lump sum of cash upfront. This money can be used to reinvest in your business and cover unexpected financial shortfalls that are outside of your control. To repay the advance, you’ll pay back a pre-determined percentage of your future credit card sales. This repayment method is beneficial because it lets you make payments as your business grows. You won’t be tied to a steep fixed monthly payment.

In addition to this, a merchant cash advance requires no hard-asset collateral. For businesses that lack the necessary assets to secure a loan, MCAs are always a good option. The MCA approval process eliminates the need for lengthy paperwork or credit checks and is typically much faster than what you’ll experience at a traditional bank.

A popular alternative financing option for restaurants, MCAs come with a fast approval process, flexible repayment structure, and lack of collateral requirements, a merchant cash advance presents an effective means of accessing the capital you need to grow your business.

What are the pros and cons of unsecured small business financing?

What are the benefits of merchant cash advances for restaurants?

Merchant cash loans give restaurant businesses the ability to receive a lump sum of cash quickly and without waiting weeks or months for your loan to be approved. This is especially beneficial in times of economic uncertainty, when traditional lenders may not be willing to lend to smaller companies with limited holdings. Merchant cash loans are, furthermore, used for diverse applications, including facility upgrades, funding marketing and advertising campaigns, and covering real estate costs.

Unlike traditional bank loans, merchant cash loans do not depend on your borrower risk profile. Instead, lenders evaluate your creditworthiness based on your credit card receipts, meaning that companies with poor payment histories can find funding with a merchant cash advance.

MCA repayment terms are flexible, with the payments taken directly from the anticipated credit card sales. This is especially valuable for restaurant businesses because it means you can remit payments regularly as you make sales and keep your business cash flow positive.

The advances provide an invaluable financing solution for low-credit businesses. With quick access to funds, flexible repayment terms, and no need for perfect credit, merchant cash loans are a reliable solution for any company that needs to overcome an unexpected shortfall, quickly. If your restaurant needs a fast cash injection, consider a merchant cash loan from New Bridge Merchant Capital to help shore up your long-term financial success.

Merchant cash loans for low-credit restaurant owners

As a restaurant owner with a low credit score, it’s easy to feel like you’re perpetually stuck between a rock and a hard place. You realize you need additional funding to help your business succeed, but your challenged credit prevents you from accessing conventional loans that are notoriously difficult to qualify for. Fortunately, merchant cash advances offer a way of escaping this misfortunate quandary and can help you reestablish your personal and business credit profiles.

You can use merchant cash advances for quick access to working capital that allows you to modernize your kitchen and hire additional staff. Unlike traditional loans, merchant cash advances are not dependent on credit scores. Instead, lenders establish your limits based on the volume of credit card receipts your business collects. This financing option lets restaurant owners with low credit scores secure the financing necessary to keep their businesses afloat.

The advance payments factor themselves against a percentage of your credit card sales. This way, restaurant owners can repay the loan over time, while simultaneously improving their credit situation. The benefits of merchant capital advance loans certainly outweigh their drawbacks because they are an effective solution for low-credit restaurant owners who need to establish a business banking partnership.

Merchant cash advances offer more flexible repayment terms than traditional loans. This makes it easier for restaurant owners to manage their cash flow and pay back the advance on their own terms. Merchant cash advances give you the immediate financial support you need to let your restaurant thrive while, at the same time, they can help develop your business credit profile.

Explore your MCA lending options with New Bridge Merchant Capital

To sum it up, restaurant owners with low credit scores can benefit immensely from merchant cash advances because they give them fast access to working capital. MCAs can help establish or reestablish your business credit. Meanwhile, you’ll build a relationship with a trusted business banking partner and continue funding your restaurant operations.

To find out your eligibility for an MCA loan or restaurant line of credit, fill out our online application or dial New Bridge Merchant Capital at 844-228-0593 to connect with a business lending consultant now.

Work With a Leading Commercial Lender

At NewBridge Capital Solutions, our loan products can help businesses of all sizes. With our exceptional customer service and reputable funding, we have become a trusted leader in the commercial finance industry. If you want to apply for a term loan that can provide working capital for your business, make sure to contact us.
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