The Entrepreneur’s Guide to Restaurant Funding

One of the most common industries that comes to mind when you think of small businesses are restaurants. It always seems that new restaurants are being built in our neighborhoods and communities and that these are all soon replaced by other restaurants. So why is it that the turnover rate for new restaurants is so high? It turns out the reason why nearly 20% of new eating establishments fail within the first year is lack of restaurant funding. Banks are usually unwilling to offer traditional business loans to restaurants due to the high risk of the industry. So where else can business owners go for restaurant funding or business loan alternatives? Jet Capital has you covered with a few different options for restaurant working capital.

Jet Capital offers a merchant cash advance, which is considered a business loan alternative. With a merchant cash advance from Jet Capital, a restaurant is selling a percentage of its future sales to Jet Capital at a discount. Jet Capital then advances the restaurant an amount based on many factors such as credit score, business revenue and unique business situation. Jet Capital can get you restaurant funding in just a few days, much quicker than a traditional business loan.

Restaurant Funding for Newer Businesses

Jet Capital offers a few different merchant cash advance products, including one that can help newer restaurants receive restaurant funding. The Boost Merchant Cash Advance is a perfect funding tool for newer restaurants.

We’re small business owners ourselves, so we understand that the beginning of a business can be tough. This product is designed for restaurants and all businesses that have been operational for at least three months and have a monthly revenue of $5,000 or more. Eligible small businesses could receive between $2,500 and $5,000 in working capital in as soon as the same day of application.*

Restaurant Funding for Established Businesses

For well-established businesses, Jet Capital offers two different options for restaurant funding: the Pre-Fund Program and the Core Merchant Cash Advance Program. For extremely well-qualified businesses, the Pre-Fund program could get you up to 20% of your approved amount, up to a maximum of $10,000, on the same day your application is submitted.* To qualify for this program, a business must have been operational for at least two years and have $10,000 or more in monthly revenues.

If your restaurant or other small business doesn’t quite meet the qualifications above, but you’ve been operating for more than nine months, the Core Merchant Cash Advance product is a perfect business loan alternative.

Reasons for Restaurant Funding

Between capitalizing on a near-term opportunity or requiring an emergency repair, there are many reasons a small business owner might need working capital for a restaurant. At Jet Capital, we understand that what it takes to grow your business can differ depending on your unique situation. Traditional bank loans can take weeks before you ever see the money, which is why a merchant cash advance is a great business loan alternative for small businesses like restaurants. Here are a few of the reasons your business might need restaurant funding:

  • Expand your current location or open a new location
  • Add heaters and/or fans to outdoor seating areas for various weather conditions
  • Replace stoves, fridges, freezers, etc. in an emergency
  • Stock up on inventory before a busy season
  • Hire seasonal employees or interns
  • Launch a marketing campaign

Because of the risks associated with this industry, finding restaurant funding can be a challenge for small business owners. Jet Capital is here to help. Apply online or give us a call at 866-845-9674 today!

*Same-day funding up to $5,000 is available for Boost MCA customers, and for well-qualified customers, 20% of conditionally approved advance amount (Net Deposit) up to $10,000 is available through the Pre-Fund Program. For Boost MCA and Pre-Fund Program customers, assumes same-day application, initial approval, submission and verification of certain underwriting documentation and Jet Capital initiation of wire transfer before 5 p.m. Eastern Time, which, subject to your financial institution’s processing policies, could be available the same business banking day. For Core MCA customers, upon receipt of additional underwriting documents and final approval, Jet Capital initiates a wire transfer for the final approved amount (Net Deposit) less any advance received in the Pre-Fund program, which could be available as early as the following business banking day.

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