Restaurant Finances Unexpected Costs
Merchant Cash Advance Restaurant Finances Unexpected Costs
Author: Valerie Mellema
Date posted: 08.24.22

Based on the east coast, a flourishing seafood restaurant had been treating diners to amazing meals, desserts, and beverages for several years. This led to the concept of opening a second iteration of the restaurant that so many had fallen in love with in the past. Things seemed to be going smoothly and the city was excited about the new construction that was coming soon. It seemed like everything was on the side of the owner. However, things never turn out exactly the way we might want them to.

Unexpected Building Costs Strike

The owner invested his own funds into the restaurant to initiate the project. His partners also contributed to finance the new venture. However, when everything was finalized, the costs of constructing the new property exceeded the budget. Although not a significant amount, it required prompt attention. Getting the new restaurant up and running took some time, but addressing the discrepancy was crucial to a successful start. This situation led to the necessity of exploring various available options.

 

The Cost to Get Things Underway

Although $1 million had been set aside to get the restaurant constructed and running, the owner now required an additional $100,000 to cover the building costs. The circumstance demanded some form of financing to manage it, ensuring the restaurant’s focus on operations. Nevertheless, selecting the appropriate financing can be stressful in certain situations.

Restaurant Finances Unexpected Costs

The Reason for Choosing a Merchant Cash Advance

The owner selected a merchant cash advance after conducting thorough research to ensure it would be a suitable solution. The restaurant’s thriving performance with numerous debit and credit card transactions allowed the owner to repay the merchant cash advance using the business’s incoming funds. This method provided a quick and convenient means of accessing the necessary funds without having a specific payback date.

 

Discovering the Benefits of Choosing a Merchant Cash Advance

Business owners opted for the merchant cash advance as the preferred solution for several reasons. To begin with, they chose it because of its design to handle short-term cash flow problems. Additionally, they favored it due to its distinction from a traditional loan. Business owners repay the money gradually, utilizing a percentage of their credit and debit card payments. Moreover, even if the restaurant’s future monthly earnings decreased, they were not obligated to make a specific payment. The money became quickly accessible, eliminating the need to wait several weeks for a traditional business loan. This appealing offer motivated them to proceed confidently.

What Was the Outcome in the End?

The restaurant promptly submitted payments to the merchant cash advance. The absence of this support might have made it more challenging to keep things afloat when revenue fluctuated from one month to the next. Presently, the second restaurant is thriving, and the community is delighted to have a new place to savor local seafood. Such an opportunity might not have materialized without the assistance of a merchant cash advance.

Restaurant Finances Unexpected Costs
About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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