Restaurants Use Cash Advances To Grow
How does a business cash advance work for restaurants? Take for example a restaurant with overall receipts of $36,000 a month of which $18,000 are charged on Visa or MasterCard credit cards. US Business Finance looks at the last six months of Visa-MasterCard receipts and, upon approval for the cash advance, wires the cash advance to the restaurant's bank account. The cash advance is then paid back as a percentage of the Visa and MasterCard sales over the next six to nine months. Cash advances do not have fixed payment day or a fixed monthly repayment amount as there are with typical with a traditional business loan.
The cash advance is not a business loan in the sense that the restaurant owner does not provide financial statements, put up equity for collateral, or add a debt on their balance sheet. It is as if US Business Finance prepaid for restaurant visits for patrons over the next six to nine months at a discount. Getting the meals prepaid, so to speak, allows the restaurant owner to invest their cash advance today to pay for extra advertising, equipment to improve productivity or decorations to make the dining experience more memorable. Any increase in sales helps to pay off the cash advance sooner and should improve the restaurant owner's profit margin.
The added benefit for the restaurant owner is that, with no personal guarantee, there is virtually no risk incurred by the owner or the restaurant. US Business Finance has a great history helping restaurant owners weather their down cycles and invest in their infrastructure to profit the most from their busy days and seasons. These small business owners have enjoyed the competitive credit card processing service and the ability to quickly tap into their emergency working capital financing.