If your restaurant needs upgrades, such as expanding its kitchen or adding outdoor seating, a merchant cash advance (MCA) could provide the funds. Unlike business loans which usually impose restrictive lending arrangements and limit how you spend them, an MCA grants more freedom in how it’s spent; making it ideal financing solution for restaurants which often experience high employee turnover rates that make finding qualified personnel challenging.
Merchant cash advances provide short-term financing that allows businesses to borrow against future credit card sales. Their rates depend on your transaction volumes and what amount is made. Unlike some forms of lending, this one does not require collateral such as inventory or equipment and often even those without excellent personal or business credit can qualify for it.
Merchant cash advances provide seasonal businesses that experience fluctuations in revenue a great way to manage fluctuation with monthly repayment amounts that adjust during slow months, meaning you pay less overall than with fixed payment amounts each month. Some providers even allow prepaying your merchant cash advance which could save on administration fees; however, prepayment won’t lower your factor rate.
Merchant cash advances may be more convenient and faster than traditional loans for short-term financial issues in your business, since their lending process is quicker and simpler; additionally, even those with poor personal or business credit could qualify.
Apply for a merchant cash advance online or in person and receive the funds in just days! Lenders typically review your company’s credit, bank statements and other documents before approving a loan; most will also require you to sign a personal guarantee agreement to protect their interests in case your business cannot repay their debts.
Fast funding can help your business manage unexpected expenses such as when your supplier goes out of business. Furthermore, fast funding allows your company to take advantage of growth opportunities such as opening a new location or hiring additional staff members. But without proper caution in managing fast funding arrangements you could quickly fall into debt.
When considering a merchant cash advance, it is crucial that you understand its processes and any potential complications. A knowledgeable attorney can explain all aspects of this form of financing and help determine whether it suits your business needs.
Merchant cash advances are an affordable solution for financing small businesses, offering unsecure loans without needing collateral as security. They’re often cheaper than loans since you won’t be paying interest on any balance you owe.