As recession still has an impact on our economy, banks are reluctant to offer financial assistance to some people. People who are in urgent requirement of finances for meeting their daily business expenses get disappointed when they do not receive a helping hand from financial institutions and banks.
Restaurant owners face many denials, particularly when they approach conventional sources of finances to get some monetary assistance. This generally happens because financial institutions and banks consider restaurant industry as a risky option. They believe that restaurants cannot generate enough income to repay the loan.
In spite of being aware of the fact that restaurants are earning more nowadays, banks show a lack of interest in lending funds to such kinds of business establishments. As there are so many issues associated with acquiring restaurant loan, you must be wondering about the best sources from where you can get the ideal monetary support for dining establishments.
Here comes the role of Merchant Cash Advance (MCA). You can be freed from all the disappointment and frustration that you experience when you apply for a loan from traditional sources if you take MCA from MCA providers. Here are some of the advantages of taking Merchant Cash Advance as a restaurant loan.
1) The quick and easy application process
You are well aware of the lengthy application procedure of the bank loan, which involves a lot of documentation and formalities. Completion of those formalities can be very time-consuming. Once the submission of the paperwork is made, then you are required to wait for days and sometimes even months to get an approval.
Time is a very important factor, especially when it comes to acquiring a restaurant loan for meeting out daily requirements of the business. Rather than waiting for days to obtain approval from the bank, you should fill out an online application form and take assistance from the MCA providers. It hardly takes 2 minutes to fill out the application form.
The best thing about applying for an MCA is that it gets approved within hours only. This quick approval process offered by the MCA providers enables a restaurant owner to obtain finances quickly and easily. Plus, the time that gets wasted by waiting around for getting restaurant loan approval from the banks can now be used for productive purposes.
2) Chances for Approval are Higher
The most disheartening thing to hear after waiting for days after the completion of the application procedure is that your restaurant loan has not been sanctioned. It is better to go for a Merchant Cash Advance as MCA providers offer you the loan that you need for running your dining establishment.
MCA as an option of financing is very non-similar to banks as their criteria of collateral and credit is completely different. When you apply for a Merchant Cash Advance, you are not required to give any collateral security for securing a restaurant loan.
Instead, the MCA providers purchase a fixed proportion of your future revenue sales based on the loan that you have taken. If you take an MCA, then the chances of its approval are way higher as compared to the lending procedures of the traditional financial institutions.
3) Affordable payments
Money lent by the banks have a fixed rate of interest and principal amount. If your restaurant fails to generate adequate funds in a particular month and fails to repay the amount within the stipulated period, then the bank will not cooperate with you nor will they lessen the restaurant loan amount to be repaid.
Nevertheless, in case of MCA, the loan amount to be repaid is based on the restaurant’s daily credit card income purchased by MCA providers. If the number of customers that visit your restaurant is less and you could not earn more in a particular month, then the amount to be repaid will be according to the revenue generated in that month.
MCA providers offer you a flexible system of payment. You will not be forced to repay a fixed restaurant loan amount every month, and you will be left with sufficient money to perform your day to day operations.
If your dining establishment is earning well in a particular month, then you can pay a higher amount and repay the loan quickly. The providers of Merchant Cash Advance offer a flexible system in which they buy the revenue sales of your dining establishment.
4) Flexibility in utilizing the money
Banks and financial institutions are very particular about the purpose for which the loan is going to be used. You are also required to give the documentation related to the bids and prices before taking financial aid from them. They may only lend you a restaurant loan for purchasing essentials for your business. That means you will not be able to use that loan for some other purpose.
On the other hand, if you take a Merchant Cash Advance, then you can use the money for several purposes without giving much explanation to the providers. If you wish to purchase more kitchen equipment, then you can do that without any worries.
Additionally, you can utilize the funds for expanding your business and for making new branches. You can also create a bigger menu by using the restaurant loan. The traditional banking systems do not favor these purposes as they don’t offer tangible collateral, which can be confiscated if you turn out to be a defaulter. Therefore, an MCA enables you to perform a variety of tasks by using the loan that they provide you.
Even, now the banks are reluctant to offer financial aid to restaurant owners. Therefore, it is advisable to take a cash advance from the MCA providers. You can get so many benefits by acquiring restaurant loan from MCA providers.
These benefits include quick approval, affordable payments, flexibility in using the loan amount obtained, and an easy application procedure. So, if you are a restaurant owner and you need a restaurant loan immediately, then MCA lenders are the people that you need to approach.