Finding the Most Appropriate Funding for a Buckinghamshire Restaurant
Capitalising on growth opportunities has been tricky for many businesses in recent years. Between the global pandemic, shortages of numerous resources creating increased costs, and difficulties in the UK economy as a whole, many businesses have been restricted to concentrating solely on staying afloat, day to day treading water while passing up on prime opportunities that, in normal times, would have given them an opportunity to grow.
One such business, a restaurant and catering company in Buckinghamshire, were in a position to grow their business, expanding to offer further services on a larger scale than they were previously able to. Unfortunately for them, the restaurant and hospitality sector is considered to be a higher risk industry by many lenders, who now only want to deal with the strongest businesses in this space and usually want to see security behind the lending, usually in the form of residential (personal) or commercial (business) property.
Fortunately for this client, they were able to get in touch with Lee Saville, Cheshire based Magna Money commercial finance advisor who specialises in unsecured and cashflow lending. Lee, having dealt with dozens, if not hundreds, of restaurant clients in the past, was well placed to support this client, and based on their situation and needs, was able to quickly narrow down the product options and start looking at Merchant Cash Advance (MCA) lenders.
MCAs, sometimes called Business Cash Advances, stand out as one of the most pioneering products in the realm of alternative business finance. Although this concept is relatively new, it has already gained considerable popularity, especially within the retail and leisure sectors. In simple terms, an MCA utilizes a business’s card terminal as collateral for borrowing – making it an ideal solution for businesses that may lack significant assets but generate a substantial volume of monthly card transactions, such as retailers, pubs, and, in this case, restaurants.
In addition, for the restaurant the MCA facility offered them the added benefit of a straightforward repayment process in which payments are automatically deducted from the card terminal provider, calculated as a percentage of card sales. This feature across the board makes MCAs particularly advantageous for businesses experiencing seasonal or fluctuating income, as the repayment amount aligns with your sales, rather than being a fixed sum, giving flexibility that makes paying down the facility much more manageable.
This business was able to secure £100,000 through their MCA, providing them a great platform to begin the next stage of their company growth, and by using an independent and unbiased broker they were able to secured the lowest cost and most appropriate solution for their situation.
