Merchant Cash Advances » Restaurant Business Advance

Restaurant Business Funding

Restaurant business owner wearing green apron smiles while confidently holding tablet.

By Richard Wilson

Last Updated on

Estimated read time: 7 minutes

If you need funding to upgrade kitchen equipment, purchase new dining furniture, or simply keep the lights on in your restaurant, MCashAdvance restaurant advances are a fast way to get the funding you need.

We provide restaurant advances ranging from $5,000 to $900,000 to help grow your restaurant. We fund all types of restaurants, including fast food chains, fine dining establishments, casual eateries, and more.

Securing financing from banks for restaurants can be a lengthy and challenging process, often taking weeks or even months to obtain, with strict approval requirements, extensive paperwork, the need for collateral, and a preference for businesses with perfect credit.

An advance from MCashAdvance for restaurants offers simpler approval, no paperwork or collateral, the possibility of receiving funds within 24 hours or up to 3 days, and accepts poor credit scores with no hard credit check that won’t impact your credit score upon application.

Get a Restaurant Loan Alternative Now

Advance Amounts:

$5,000 – $900,000

Factor Rate:

1.1– 1.5

Repayment Terms:

3 – 36 months

Funding Time:

1-3 days

Applying is easy, free, and won’t impact your credit score.

Get the restaurant financing you need today.

What is a Restaurant Advance?

A restaurant advance is a type of merchant cash advance (MCA) created for restaurants, including fast food chains, fine dining establishments, casual eateries, and other businesses in the restaurant industry.

Your restaurant sells a portion of its credit card sales to MCashAdvance in exchange for an upfront lump sum of funds called a cash advance.

In exchange, we will deduct a small percentage of your daily credit card sales revenue until the advance is fully repaid.

Emergency Funding: A Recipe for Restaurant Success

Running a restaurant is full of surprises. Sometimes, you might face a slow season, unexpected costs, or just need a financial boost. That’s where restaurant cash advances shine. They’re like a quick cash helper, often available super fast, within 24 hours to 3 days. And the best part? You can use them for anything that helps your restaurant.

Restaurant Financing for Any Purpose

Here are 13 common ways a cash advance can be utilized in your Restaurant:

  1. Upgrade Your Kitchen: Buy top-notch kitchen gear to cook faster and offer more menu choices.
  2. Redo Your Dining Area: Use the cash to make your eating space look better and feel more modern.
  3. Boost Your Tech: Get a fancy POS system to make orders and payments quicker and more accurate.
  4. Install Security: Protect your place with new security tech against theft.
  5. Go Online: Build a website and set up online ordering or table booking to reach more customers and make takeout smoother.
  6. Market Your Brand: Spend on marketing to make your restaurant known and bring in new customers.
  7. Better Ingredients: Use the money for high-quality, maybe local, ingredients to make your dishes stand out.
  8. Host Food Events: Show off your food and your chef’s skills by hosting or sponsoring culinary events.
  9. Grow Your Catering: Invest in your catering business with better equipment and transport for top-notch dining at events.
  10. Save Energy: Switch to energy-saving kitchen tools and LED lights to be more eco-friendly and save on bills.
  11. Train Your Team: Spend on training for your staff and chefs to make your restaurant run smoother and offer better service.
  12. Improve Dining Ambience: Use the cash to make your restaurant look and feel nicer with better lighting, sound, and decor.
  13. Create Special Menus: Hire a food expert or chef to make new, unique menus, like farm-to-table or special diet dishes.
Restaurant business owner wearing glasses standing in front of bar.

Restaurant Advance Example

Let’s say you need a $22,000 business cash advance to upgrade your commercial kitchen equipment for your restaurant. If you are approved for $22,000 and receive a funding offer with a factor rate of 1.1 and a daily credit card holdback percentage of 15%, your total repayment amount will be $24,200, which means you’ll be paying $2,200 in fees.

DetailsExample
Advance Amount$22,000
Factor Rate1.1
Avg Monthly Credit Card Sales$12,000
Holdback Percentage15% of Daily Credit Card Sales
Daily Credit Card Sales$400 per day (approx.)
Daily Payment Amount$60 per day (approx.)
Repayment Term (in days)Approximately 406.67 days (rounded up)
Repayment Term (in months)Approximately 13.56 months (rounded up)
Total Repaid$22,000 (Advance Amount) + $2,200 (Fees) = $24,200

Restaurant Funding Eligibility

To be eligible for funding from MCashAdvance you must meet these 5 criteria:

  1. Your dining establishment needs to have been in business for at least 6 months
  2. Your restaurant should be earning a minimum of $100,000 per year in revenue
  3. As the restaurant owner, your personal FICO score must be 550 or higher
  4. Your restaurant must use a business checking account
  5. You must be over 18 years of age and a U.S. citizen

How to Get a Restaurant Advance from MCashAdvance

To get an advance for your restaurant business from MCashAdvance, follow these 5 steps:

Step 1: Begin Online Application: Click Apply for an MCA to begin.

Step 2: Fill in Your Details: Provide information about your restaurant and some personal details as the owner of the restaurant.

Step 3: Submit Bank Statements: Upload the last three months’ bank statements of your restaurant.

Step 4: Await Review Process: One of our underwriters will review your cash advance application to decide on funding.

Step 5: Receive Offer and Funding: Once you get a funding offer, review it. If it suits your business needs, accept it, sign the MCA agreement and the funds will be deposited into your business account.

Get a Restaurant Business Advance Now

or learn more about merchant cash advances

Restaurant Funding FAQs

Can restaurants get an SBA loan?

Restaurants can potentially qualify for SBA loans, and they are most likely to be eligible for options like the SBA 7(a) Loan, SBA 504 Loan, and SBA Express Loan, which can provide financial support tailored to their specific industry.

Can restaurants get invoice financing loans?

Restaurants generally don’t issue invoices to patrons, as payment is received at the time of dining. Invoice financing is more common in B2B industries.

Can banks provide loans to restaurants?

Banks generally require restaurants to have a minimum of two years in operation, a FICO credit score of 680 or higher, three years of cash flow records, and a clear business plan detailing fund usage. Meeting these criteria increases the likelihood of bank approval. If you can’t meet these requirements, consider exploring alternative lenders like MCashAdvance, which may offer more favorable eligibility criteria for obtaining financial support for your restaurant.

How does restaurant equipment financing work?

Restaurants can purchase equipment like commercial ovens and use the commercial ovens as collateral to secure financing. At MCashAdvance, you can acquire commercial ovens using our advances without having to use the equipment as collateral.

Can restaurants get business lines of credit?

Absolutely, restaurants can secure a business line of credit when they meet criteria tailored to the restaurant industry. These typically include maintaining a FICO credit score of 660 or higher, operating as a restaurant for at least one year, and consistently generating monthly restaurant revenue exceeding $5,000.

Why would a restaurant owner choose a restaurant advance instead of a loan?

Restaurant advances are often more accessible than traditional loans, especially for those with weak credit or insufficient collateral. They offer flexible repayment terms based on a percentage of daily sales, making them suitable for restaurants with fluctuating income.

Why might restaurant owners not qualify for traditional loans?

Owners might not qualify for traditional loans due to weak credit, lack of collateral, or unstable finances. The restaurant industry’s high failure rate and unpredictable nature make lenders cautious, leading to stricter lending criteria.

Why is the restaurant industry considered high-risk?

The restaurant industry faces challenges like stiff competition, high operational costs, and fluctuating customer preferences, leading to a higher failure rate compared to other sectors.

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