Business Cash Advances Help Restaurants Facing Tight Credit

When the holiday or vacation season coincides with economic contractions and tight credit, no one feels it more than restaurant owners. By using merchant cash advances, US Business Finance Corp finds restaurateurs are able to keep the doors open and avoid the tight credit markets. Many restaurants have turned to alternative business financing when their lines of credit have been reduced or closed. They also find that a bank loan is as realistic as the Treasury Department giving them the same sweet deal as Wall Street.

Using their track record of sales, restaurants can use the promise of future sales to land a merchant cash advance. The cash advance can be used for any of the restaurant’s cash flow needs: payroll, payroll taxes, extra inventory or seasonal advertising to boost business. When future Visa and MasterCard sales are made, a portion, usually 15%, goes to repaying the business cash advance. In a normal economy the cash advance is paid off in six months, but, note many merchants, this year the normal time period is seven to nine months. However, there are never any late fees, so the ability to  automatically lengthen of the pay-back period benefits the restaurant owners.

Like many businesses whose success rides on seasonal business, restaurants find the timeliness of landing a merchant cash advance a great asset. Since traditional loans, even if they were possible can not be obtained in time to help with a timely financial need, often take months to gather and process the paperwork and risk analysis. With first time cash advances, the time from application to funding takes less than ten business days.

Tight credit and uneven cash flow problems affecting your restaurant business? Call the merchant cash advance alternative financing specialists at US Business Finance Corp to get an idea of how high a cash advance your restaurant may qualify for based on your past sales.

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Filed under: Alternative Capital, Business Cash Advance, MasterCard/VISA, National Economy