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When you’re running a restaurant, having enough cash on hand is critical. Whether you need extra income to get you through the slow season or an expensive piece of equipment suddenly fails, there’s bound to be a time when you need money right away.
If you’re looking for a simple, flexible solution for your restaurant funding needs, a merchant cash advance (MCA) is an excellent option. MCAs offer business owners a fast, easy way to get money when you need it — without the hassle.
What exactly is an MCA, and how can it help your restaurant thrive? Here’s what you need to know.
What Is a Merchant Cash Advance?
A merchant cash advance is an arrangement that allows a borrower to receive an advance on their businesses’ future credit or debit card sales. Since an MCA is not a traditional loan, you won’t have to worry about spending restrictions or rigid payment structures. Instead, an MCA offers a fast and flexible option for getting you the cash you need to cover your restaurant expenses.
5 Reasons Restaurant Owners Love MCAs
An MCA is structured in a way that makes it extremely convenient for borrowers. This structure is perfectly suited to the restaurant industry. Following are just a few of the benefits you’ll enjoy when you choose an MCA for your restaurant funding.
1. Fast Approval and Deposit
While traditional loans often have a long and complex approval process, merchant cash advances are designed for speed.
There’s no need to spend hours slaving over your application. Since an MCA is based on your business sales, rather than your personal credit, you won’t have to provide a ton of background information. As long as your restaurant has been in business for a minimum of six months and you have at least $10,000 per month in sales, you’ll qualify.
You also won’t have to wait forever for your money. When you apply for a merchant cash advance through Zinch, in most cases, you’ll receive your approval within 24 hours. Once approved, you can expect to have the cash in your bank account in as little as two to three days.
2. No Use Restrictions
Certain types of business loans place restrictions on how you can use the money. In the restaurant industry, flexibility is critical. Once you’re approved for a merchant cash advance, you’re free to spend your restaurant funding however you need to. Want to buy a fancy piece of equipment, give a key employee a bonus, or use the money to pay off other creditors? The choice is yours.
3. Flexible Repayment Options
The obligation to make fixed monthly payments is one of the biggest drawbacks of traditional restaurant funding. When you take out a traditional loan, a dip in sales can quickly put you in hot water.
With a merchant cash advance, there’s no set payment amount. Instead, your repayment is calculated as a percentage of your credit or debit card sales. If your sales happen to decrease, your payment will go down as well. This gives many restaurant owners the peace of mind they need to apply for funding when they need it the most.
At Zinch, we know how busy restaurant owners are. That’s why we make repayment easy by collecting the amount owed directly via Automated Clearing House (ACH) or from your credit card processor. This ensures you’ll never inadvertently miss a payment.
4. Lump-Sum Funding
When you take out an MCA, you’ll receive the entire amount in one lump sum. This gives you the flexibility of making large purchases as needed. At Zinch, we offer merchant cash advances ranging from $10,000 to $250,000.
You also don’t have to fully repay your cash advance to get more funds. Once you’re already a client, the process is even easier and faster since there’s an existing relationship, meaning you’ll need fewer documents to get approved.
5. No Impact on Your Assets or Credit Score
Many business loans require the borrower to provide a personal guarantee. As a restaurant owner, you’ve already taken on enough risk. Since an MCA from Zinch is based on your restaurant’s future sales, it doesn’t have any impact on your credit score. You also won’t have to worry about putting up your personal assets as collateral.
Take Control of Your Restaurant Funding Today!
Zinch is the go-to provider of merchant cash advances for restaurant owners. Contact us today at (714) 500-6622 to learn more about this popular restaurant funding option!
