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If you are a restaurateur you may like to know how to raise funding for a restaurant or restaurant growth. Managing day to day expenses and tracking your the businesses inventory and sales with POS system are important components of running a successful restaurant. Simple mistakes in bookkeeping and purchasing can cost you and the business thousands of pounds. In the long run or worse still get the business closed down. Inevitably, problems will arise. The key to an outstanding restaurant is how you handle those problems as and when they happen.

If the business is running short on cash, you can take proactive steps. These steps maybe such as cutting back on food ordering or payroll. You can also speak with creditors about having an extension and buying food on a monthly credit account. Some common mistakes small business owners make are not paying taxes or running up credit cards can finish a business. 

How to get Funding for the Restaurant

Restaurants owners know only too well how difficult it is to get business funding and running a restaurant business at the same time. This is down to the banks risk on restaurants due to a notoriously high failure rate. The restaurant business isn’t an area that many bankers jump to finance. Solid business plan and cash flow projections will show the bank that you know your business and that you are worth the investment.

Creating a restaurant business plan forces you to learn about all the different parts of your business.  Get to know local competition and the local market. A business plan is essential for most businesses seeking any kind of bank financing a kinda blueprint of the business.

Learn how to market a restaurant, this will also be required in the business plan. Marketing will come in helpful in the future while funds are short until the venture takes off then employ a professional. 

Business loans from the bank are great for restaurants as the term time can be up to five years. The down side it can take up to a year to get the restaurant business funding from the bank. The risk is after you have spend £1000’s on an accountant to put together a business plan and cash flow forecasts for the business you may get rejected for a loan. At that point it has only made the situation get worse financially as you now have another creditor who wants paying.

There is a new product that has started to land on the door steps of restaurants and the hospitality industry of late. The concept is simple and easy to use, it allows funding from £5,000 – £200,000 in 48 hours for anyone using a card payment terminal. The funding solutions is known as a Merchant Cash Advance for Restaurants. The principle behind the financial product is so simple.  A pre-agreed percentage of the future card transactions for the business is agreed up from. The average amount for this is usually about 7%. Every time a sale is made this percentage will go towards paying the cash advance back.

Due to the payments only being made when you make a sale there’s no such thing as a late payment. This product is ideal for seasonal business such as restaurants as your cash flow isn’t as strong in the quieter months. The Merchant Cash Advance funding does not require any business plans or personal guarantees making it a perfect way to raise funding for a restaurant!

Funding Criteria for a Restaurant

  • £5,000 – £200,000 in minutes
  • Must take card payments of £5,000 or more per month
  • Been trading for 6 months or more
  • Limited Company, Partnership or Sole Trader
  • 85% of restaurant businesses are approved for cash advances.

If your feel we can support your business with a Merchant Account Cash Advance for Restaurants, and raise funding for your business please complete the online enquiry form. Once we receive it a cash advance specialist will make contact with you.

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