Worried About Expanding your Catering Business or Even your Coffee Shop? Try Out Merchant Cash Advance
Being in business has its own share of uncertainties. Especially, any business related to catering or the food industry. A lot goes into estimating the right quantities. There may be days when business is extremely fast and then again, days when business is a trickle. In these situations, the right estimation on your part ensures that the food does not get wasted and there is no wastage of raw materials. After all, in the food business, serving fresh and tasty food is very important.
So, if you are a small business owner with a food catering business, how would you be able to expand your business, without worrying about the monthly payments? Are there any business funding options available for Catering, Food Services, Coffee Shops, Franchises and Fast Food Restaurants?
Fortunately, yes. There are different options available apart from the regular commercial bank loans. One of them is a business cash advance and/or Merchant cash advance.
How is Merchant cash advance different from other forms of business funding?
When you have a small business and are looking to expand it, the easiest option available to you is in the form of a business cash advance.
Your catering business is doing great and you have confidence that you will experience profits by expanding it. But the profits could be seasonal, initially. And your credit history is not all that good. And so, going in for commercial loans at higher interest rates and stricter pay back terms is completely out of question. It is here that business funding in the form of Merchant cash advance (MCA) comes into picture.
MCA is different from commercial loans as it is not a loan in the first place. It is an advance given to the business in exchange for the future revenues or sales, through the future credit card or debit card sales. If your business has good sales through card transactions, then you should easily qualify for a Merchant cash Advance from a Merchant cash provider.
MCA also gives you the flexibility to pay back in easier terms. If the sales are good, then the amount that you can pay to your MCA provider can be increased. Otherwise, it stays at a fixed percentage of the daily debit and credit card revenue.
Here in MCA, the small businesses need not have any collateral. Even bad credit is okay. Merchants havingNSFs also qualify for these forms of Cash advance from Merchant cash advance companies.
How it Works?
This kind of business funding is an alternative funding solution. It is mainly beneficial for small businesses like yours, especially in the catering and food industry, fast food restaurants and also coffee shops and franchises.
The process is very simple and easy to follow. Based on your past revenue, you get Cash Advance from the Merchant cash advance company. The amount that you will have to pay and the other payment terms are mutually agreed upon by you and the merchant cash advance provider.
The approval process is fairly simple and easy. Once the cash advance is approved, you get the business funding for the expansion of your business. You then remit a percentage of the sales to the company. You end up paying the same amount for the agreed time period. You will not have fixed monthly payments.
With this kind of funding, you have a chance at expanding your business, increasing the cash flow and profit, without worrying about the payback amounts.
Uses of MCA
Unlike other forms of business funding, the cash advance that you get from a MCA provider can be used for many things. The foremost thing that you will use it for, is expanding your catering business. But at the same time, if you have multiple things lined up for expansion, you can use the amount for the same.
For example, Merchant cash advance can be used for the following:
Repairs and renovation
Purchasing new equipment required for your catering business
Purchasing stock and inventory
Hiring new staff
Apart from this, if you want to clear off a previous debt, you can use this advance to clear the debt. You can also get a 2nd position or 3rd position funding from MCA providers.
However, you should remember that MCA is generally a short term kind of funding and not a long term. The interest rates are on the higher side. But they give you good flexibility, giving you time to increase your business cash flow.
Get in touch with us
Our company will give you all the above-mentioned benefits and that extra push for your business expansion. Our services also include 2nd Position, 3rd Position, 4th and 5th Position funding. Our terms are flexible and approval rates are very high.
Get in touch with us today, and see your business expand to greater horizons.