About Restaurant Business Loans
Accessing the right form of finance when needed is often critical for businesses, with restaurants being no exclusion. However, lending criteria from high street banks has tightened significantly since 2008 and many restaurants may find themselves unable to access necessary funding.
Quote Goat works with a panel of finance brokers and alternative lenders that are able to arrange finance & loans for restaurants that would not meet eligibility criteria imposed by high street lenders, as well as those restaurants that would meet the criteria.
By completing the short application form, you will be contacted by experienced business funding specialists who can talk you through the funding process and help you decide on a suitable funding method. Financing options available range from asset finance, secured and unsecured restaurant business loans through to merchant cash advances.
It takes less than a minute to apply and does not affect your credit score. Below we take a look at a newer form of finance that is particularly suited to restaurants affected by seasonal sales increases and decreases – merchant cash advances.
How Can A Restaurant Cash Advance Help?
As a restaurant owner you may be looking for finance to fund expansion, new equipment purchases or more. A merchant cash advance gives you access to fast financing with funds available in as little as 24 hours. One of the main benefits of this type of lending compared to a traditional loan is that the amount you repay each day is aligned to the amount of card sales you take. On a quieter day your card sales will be less and therefore you pay back less, equally on a busy day you will pay back more to reduce the amount you borrowed.
There is absolutely no interest charged and there are never any late payment fees or charges. The amount your restaurant will pay back is decided at the beginning and is based on a factor rate which takes your restaurant’s performance into account. A typical factor rate is between 1.05 and 1.15. If you were to borrow £10,000 at a pre-agreed factor rate of 1.10 then you will repay £11,000. The repayment period is typically 6 months to 1 year but if your card sales are less than anticipated you will never have to pay late charges.
Merchant cash advances have been praised by the government as an alternative funding option for UK businesses and have already helped thousands of restaurant owners secure the funding they need for expansion, new equipment, staffing costs and more.
Will Your Restaurant Qualify?
If you have been trading for more than 6 months, have monthly card sales of £5,000 or more, are a UK resident and over 18, you can qualify for a merchant cash advance. All credit histories are welcome, so even if you have bad credit we can still accept you for funding.
The application process takes no time at all and requires no paperwork.
Advantages Of A Restaurant Merchant Cash Advance
Fast Funding: Receive funds in as little as 48 hours from the time of application.
Flexible Payments: Repayments are based on a percentage of monthly card sales, adjusting inline with your cash flow.
Unsecured Borrowing: Merchant Cash Advances are unsecured, leaving your business assets safe.
Card Only: Repayments are based solely on card sales, keep 100% of company’s cash transactions.
No Hidden Costs: There is no interest to pay, no fees and no hidden costs. Money is borrowed with a typical factor rate of 1.10-1.25.
No Paperwork or Business Plan: No business plan or paperwork is required. Simply apply online in under 30 seconds and we’ll be in contact.
What Does A Typical Merchant Cash Advance Look Like?
A restaurant owner has average card sales of £10,000 per month and wants to borrow £10,000 to cover the cost of new equipment. The owner agrees to pay back £12,000 using 10% of card sales each month. The repayment will last approximately 12 months. If the restaurant’s card sales are less than the average over the 12 month period, there are no additional charges or fees to pay.
More Information and FAQs
What business types are suitable for a merchant cash advance?
Any business that takes card payment as their primary form of payment. Typical clients are restaurants, bars, nightclubs, hotels, b and b’s, hair and beauty salons, retail businesses and more.
Do I qualify for a merchant cash advance?
To qualify you need to have been trading for 6 months, have monthly card sales of £5,000 or more, be a UK resident and be over 18.
Are applicants with poor credit accepted?
Unlike traditional funding methods, poor credit is not a barrier to accessing a merchant cash advance when your business needs it.
How much can I borrow?
Funding starts from £2,500 and is based upon your business’ cash flow up to a maximum amount of £500,000
How long does it take for the funds to be available?
Funds can be available in your account from as little as 48 hours from the time of application.
Is the loan secured?
Merchant Cash Advances are an unsecured borrowing product and therefore both your business and personal are safe when accessing finance using this route.
How much will I have to repay?
The amount you repay is decided by a factor rate which is set by the lender when you apply. This is typically between 1.1 and 1.25. If, for example, a lender sets a factor rate of 1.15 and you borrow £10,000 you would repay £11,500. There is no interest and no other charges to pay.