Restaurants are taking advantage of merchant cash advances
Independent restaurants are increasingly using merchant cash advances in an attempt to keep ahead of the competition posed by chains and franchises, according to working capital solutions provider LendrzHub.
The fin-tech company revealed a 37% rise in demand for its services this year to date, as restaurants and bars seek cash advances to expand, refurbish, redevelop, and invest. Gone are the days when restaurant closures were the norm.
The need for business funding has increased due to rising costs and a requirement to take expand or invest in human resources. Such financing allows the independents to get a stronger foothold in the sector.
Independent restaurants could gain an advantage because their customers value the personal approach, knowing that their food is locally sourced and that their favorite restaurants are part of the community.
The real problem is that many restaurants are turned down by banks or are required to secure loans against their property.
Conversely, a merchant cash advance is designed to match businesses’ cash flows, with repayments taken as a small percentage of debt and credit card sales, so they only pay back the funding when customers pay them.
Cash is vital in the restaurant business. On any given day, there are considerable amounts of cash flow. Keeping on top of finances be hard. There are times when you need help, and merchant cash advances keep businesses moving forward.
LendrzHub can help.
Being denied a loan does not mean the end of the world. It just means that you probably have to look elsewhere, somewhere where your business is worthy of credit. With over one hundred lending partners, we can help get you the money that your business needs and deserves.
Visit us for a fast, no-compromise pre-approval.