Unexpected Building Costs Strike

The owner had his own investment into the restaurant to get things underway. His partners also chipped in to help finance the new endeavor. However, when all was said and done, the costs of building the new property had gone over budget. It wasn’t a substantial amount but it was something that needed to be handled sooner rather than later. It took some time to get the new restaurant going and in the swing of things, but the discrepancy needed to be considered and dealt with to get things off on the right foot. This led to a need to explore all of the options out there.


The Cost to Get Things Underway

While there had been $1 million set aside to get the restaurant constructed and running, the owner now needed another $100,000 to take care of the building costs. It was clear that some kind of financing was needed to handle the situation. This would ensure the restaurant could focus on operations. However, choosing the right financing can be stressful in some situations.

The Reason for Choosing a Merchant Cash Advance

There were several options for the owner but when it came down to it, a merchant cash advance was chosen. Research went into the process to be sure it would be a good solution. Since the restaurant was doing well with tons of debit and credit card transactions, the merchant cash advance could be paid off using the money moving the business. It was a quick and easy method of accessing the needed money without having a specific date for payback.


The Benefits of Choosing a Merchant Cash Advance

There were several reasons the merchant cash advance was the top solution. For one, it’s made to handle short-term cash flow problems. It’s also not the same as a traditional loan. With a merchant cash advance, business owners pay the money back over time using a percentage of their credit and debit card payments. Even if the restaurant wasn’t making as much in future months, there would be no specific payment required. The money was available quickly, rather than needing to wait several weeks for a traditional business loan. It seemed like a good deal so things went forward.

What Happened in the End?

Since the restaurant was hopping, payments were quickly made to the merchant cash advance. Without the advance, it might have been more challenging to keep things afloat when revenue was down one month and up the next. As of today, the second restaurant is doing great. The community loves having a new place to enjoy local seafood. That may not have been possible without a merchant cash advance.

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