As the banks retain a tight grip on high street credit, seeking an alternative funding arrangement could give you the capital you need to stand out. Rich Wilcock, director of alternative finance company www.capalona.co.uk, explains how a highly flexible Merchant Cash Advance could give you a cash boost to help you thrive during the most challenging times.
Running a successful restaurant business can be tough even in the most buoyant of financial climates. Restaurateurs are typically tasked with long working hours, difficult customers and a fluctuating workforce yet what amplifies these issues and more is a lack of working capital.
There comes a time when every restaurant owner must invest in the business without impacting cashflow. Upgrading kitchen equipment, refreshing the décor, taking on more staff or investing in marketing and training requires working capital. Traditional forms of credit, such as conventional bank loans, can be difficult to obtain, especially in times of financial uncertainty. Few banks are willing to support high street ventures and, with strict qualifying requirements and rigid repayment terms, many business owners struggle to acquire the funds they need to stay afloat. A Merchant Cash Advance is an alternative business finance arrangement that is widely available to restaurateurs who use card machines to process payments. An advance can be requested quickly online; once approved, funds can be made available within a matter of hours and flexibly repaid in line with your seasonal takings.
A Merchant Cash Advance is short-term, unsecured loan that provides a host of exciting benefits for restaurant owners who accept card payments. The amount you can borrow is based on a percentage of your monthly card sales. The funds are usually transferred within hours of approval – there are no upfront fees nor fixed terms – and repayments are made via future card payments. A small percentage of each sale is repaid to the lender via your card terminal; you only repay the loan as and when a card transaction is processed. This is particularly attractive during seasonal fluctuations and offers far greater flexibility than traditional loans.
To ensure you can repay the loan, a manageable pricing structure is tailored to the needs and typical performance of your business. A larger proportion is paid off when business is booming and less when it’s quiet. Merchant Cash Advances are typically repaid within nine to twelve months.
For busy restaurateurs, making repayments automatically at the time of sale is a huge benefit. You won’t have to process additional paperwork or change your card terminal. As loan repayments are processed solely via your card machine, you retain 100% of your cash transactions. A Merchant Cash Advance is a completely unique lending proposition and probably the most advantageous form of finance available to UK restaurant owners today.
For more information or to get your free no obligation quote, please visit www.merchantloanadvance.co.uk or www.capalona.co.uk. You can also call us on 0800 133 7868.
