When you think of merchant cash advances you probably picture new businesses struggling to get cash due to a lack of history and high risk merchants like e-cigarettes and debt collection. But have you ever thought of the hospitality industry utilizing this financing tool?
As of late, small and medium-sized companies in the hospitality market are more and more frequently turning to merchant cash advances as an alternative to bank loans. Why? The top reason appears to be that they are quicker to apply for and an increasingly attractive proposition for business owners when it comes to repayment. With a merchant cash advance there are no fixed terms or APR.
Pandemic hits hospitality industry hard
Restaurants, pubs and bars across the globe were hit hard during the initial months of the pandemic and the lockdowns that have followed. The long-term effects are still kicking in. To survive, these business owners – like so many others – scrambled to try to secure funding to keep things running and avoid closing their doors forever.
The merchant cash advance has been a very fast and flexible source of funding. The simple 24 hours it takes to be approved has been a lifeline for so many in this sector. In recent months, the applications have continued to climb across the majority of business sectors.
How the hospitality industry can benefit from MCAs
Having enough cash-on-hand to sustain day-to-day operations and grow is critical for every business, regardless of industry. As a restaurant owner, you need financial options that allow you to keep operations afloat, especially in our economy today. A merchant cash advance allows you to do just that.
A merchant cash advance is not a loan. Essentially, this financing tool provides a lump sum payment to your business in exchange for an agreed-upon percent of future credit card sales. The repayment process is known for being incredibly flexible. If your business is doing well, it pays back more. If your business experiences a slow month, you pay back less. Even businesses with poor credit can be approved for an MCA.
- Quick & easy access to funds. Merchant cash advances involve much less red tape than trying to secure a loan through a bank. These providers understand timing is everything and can help you get cash in your business’ bank account in as little as 24 hours.
- Spend how and when you need to. Unlike other financing options, you can use the funds received through a merchant cash advance for what you need most – no strings attached. If you need new machinery, use it for that. If you need more materials, you can use it for that too.
- Straightforward application process. As mentioned, the application process is known for being simple and hassle-free. A bank loan can take anywhere between 30-90 days after an application is submitted to be approved. An MCA allows you to significantly speed up this process, gaining needed cash in just one day.
- Fund emergencies and the unexpected. If we’ve learned anything during the pandemic, it’s that the unexpected is around every corner and emergencies need cash – lots of it. An MCA provides peace of mind through reliable and fast access to cash when you need it most.
If you’d like to learn more about how to get started with a merchant cash advance or search for a provider that knows your industry, consider the information Best Payment Providers has to offer. Browse countless reviews and keep up with the latest industry updates. Quickly find the reputation your business deserves.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of Best Payment Providers. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.