Restaurant owners are one of those entrepreneurs who often need fast money for business development. That is why merchant cash advances are the second most commonly sought form of business lending for restaurants, only next to traditional bank loans. However, as financial experts often say, traditional bank credit is not always the best way for restaurants. It is at this point that cash advance services come to the rescue and are often the main source of money for each restaurant owner. Here are top 5 reasons why restaurants are the biggest consumers of cash advances.
- Time for Obtaining a Loan and a Cash Advance
A restaurant or a cafe is not a business that is designed and prepared for one year. If the owner does not have enough money to start a business, then he needs them right now. When a restaurant owner needs money, they need it yesterday. They need cash to keep open their venture, pay their personnel, or even just buy more ingredients during a hot season. Asking them not to hurry means telling them to declare bankruptcy. Hence, cash advance services is the best option in terms of timeliness at least because most advance companies need 48 to 72 hours to approve a loan.
- Credit Approval
Bitter truth, but most businessmen who run restaurants have poor credit history. The vast majority of bank institutions wait for brilliant credit score and want to see a restaurateur on the long road of success. And of course, it is simply impossible in most cases. Many entrepreneurs are aware of this fact and they prefer to use the same day cash advance.
- Flexible Credit Conditions
The fact is that restaurant industry really does not work properly with regular loan payments. A bunch of various factors make your target audience decide to go or not go to a restaurant (for example, weather, economic situation, general mood, and more. Restaurant entrepreneurs need accurate payment schedules that work with their cash flow, but bank loans do not offer that. Instant cash advance services, in turn, do.
- The Loan Size
Banks do not like the hospitality industry and not every bank is ready to provide the restaurant with a large loan amount. This is connected with risks, and as we know, this business industry is risky and few want to finance restaurants even if they do qualify. Even if you can prove your solvency, banks can be wary of what you are doing. That is why cash advances for restaurants is the best and most rational solution.
The time has passed when cash advances were unreliable and nameless and today everyone uses instant cash advance online. When it comes to cash advance in Canada, you can easily contact agents and get cash within a few hours or days, depending on the terms. It’s easy and simple, that’s why a small business loves cash advances.
Basically, restaurants love cash advance companies because cash advances work with them. They are what they need and work with a restaurant business model. That’s why they go to CMCA, to get the best terms out there.
Be sure to check www.canadianmerchantcashadvance.com