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Business funding for restaurants using a cash advance

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Whether it is a small eatery, a catering truck or a large chain of restaurants, opening and running a  successful restaurant can be a very rewarding yet challenging task. From picking the perfect location and  creating a distinct ambiance to the recruitment of the right staff and the conception of a savory menu, an  extravagant amount of time and dedication goes into serving people. In a recent industry survey of  restaurant owners, although many restaurant operators continue to do well, only 38 percent described  their financial situation as ‘good to excellent.’

And if you are a restaurant owner, chances are that you need funding to launch or to expand/ remodel  your restaurant in order to bring in more customers. Whether you are purchasing new equipment for the kitchen to keep up with demand, a POS system to improve efficiency, or spending on advertising to attract more customers and to promote special events, or boosting your cash flow to help with unexpected business expenses, merchant services can provide the required working capital and resources for your business to flourish and get back on track even though you might have had trouble getting your loan approved by a traditional bank.

A merchant cash advance, one of the most popular forms of financing for small business owners is at its very basic, a direct cash advance with repayments factored from the future sales of your establishment. Unlike banks, merchant cash advances don’t require you to pay collateral or dig up financial documents, even though you suffer from poor credit. They also come without limitations on how you use your capital, with a high approval rate, fast funding, easy renewals and flexible payment options based on revenues to ensure optimal cash flow. However, merchant cash advances are often tied to a merchant account or credit card processing since the repayments are deducted automatically from the restaurant’s daily card sales via an affiliated credit card processor, based on an small fixed percentage, until the balance is fully paid.

A more viable option is to go for an ACH merchant advance funding that works in sync with your business plan, as the repayment does not solely rely on the processing of cards but also takes all of your cash sales and gross deposits, into account. The many benefits of an ACH cash advance include your ability to retain an existing relationship with their credit card providers and faster access to the requested advance funds, since a change in credit card processing need not take place. The ACH merchant advance funding program allows merchant services daily access to the business’s bank account in order to deduct the required percentage via ACH (automatic clearing house) transactions, thus helping them retain the privacy of their customers. If you wish you to maintain your privacy, there’s also a lock box version of the ACH advance which uses a third-party bank account, but this might mean a three-day delay accessing for you to access your own funds.

In the end, it is important that you set up a merchant account with a provider who can process all forms of payment and have the lowest processing fees for your business and if your business doesn’t have a merchant account, 1st American merchant services can still fund you a cash advance with our ACH program where we approve your business based on the total gross deposits into your business bank account. Our goal is to provide you with easy access to business financing so that you can focus on what you do best – growing your restaurant, your way