Hospitality financing needs met by cash advances from merchants
- The annual demand of Restaurants for merchant cash advances up to 30%
- Pubs and bars advances have increased 37.5% over the past 12 months
Lender 365 Business Finance has supported the financing needs of the country’s hospitality industry, with restaurant demand for merchant cash advances increasing 30% year-over-year. Meanwhile, pubs and bars have shown an even greater need for flexible financing with 37.5% * growth in the number of advances taken by these companies.
SMEs in the UK hospitality market are now turning to merchant cash advances as an alternative to bank loans more frequently, mainly because they are quicker to apply and are a growing proposition. more attractive to business owners in terms of repayment, with no fixed terms or APR.
While some restaurants, pubs and bars are still recovering from the negative impacts of the COVID-19 pandemic, flexible funding that may take as little as 24 hours to be approved is proving to be a lifeline for many in this world. sector.
However, it is not just the hospitality industry that is making the most of merchant cash advances, as 365 Business Finance saw a staggering 109% increase in funded transactions over the summer, compared to the spring. .
365 Business Finance Managing Director Andrew Raphaely said: “Although our main customers are food retail stores during the closures, caused by the pandemic, since the spring there has been a noticeable increase in the number of restaurants. , pubs and bars taking cash advances to traders. – because they aim to renovate and expand now that restrictions on social distancing have been relaxed.
“Over the past three to four months, we have clearly seen an increase in most lines of business, in terms of funding requests from us. We blame this on UK SMEs who are now realizing and fully exploring the benefits of merchant cash advances over traditional bank loans. “
This latest comprehensive guide from 365 Business Finance provides additional information for restaurants, pubs, and bars about merchant cash advances vs. bank loans, and why a merchant cash advance might be the best financing option available. now that government grants and loans end: