MCAs are one of the most popular funding options for restaurants. Here's why:
Why MCAs Work for Restaurants:
Natural Fit:
- ●Restaurants process high card volume
- ●Revenue fluctuates by day/season
- ●Equipment breaks don't wait
- ●Fast approval matches urgent needs
Payment Flexibility:
- ●Slow Tuesday? Small payment
- ●Busy Saturday? Larger payment
- ●Holidays off? Very low payment
- ●Payments naturally match your cycle
Common Restaurant MCA Uses:
- ●Emergency equipment replacement
- ●Kitchen renovation
- ●Seasonal inventory stock-up
- ●Payroll during slow season
- ●Marketing campaigns
- ●Expansion down payment
What Restaurant Owners Should Know:
Ideal Candidate:
- ●Processing $15K+ monthly in cards
- ●6+ months in current location
- ●Stable or growing sales
- ●Clear use of funds
Typical Terms for Restaurants:
- ●Advance: $25K - $200K
- ●Factor: 1.25 - 1.45
- ●Holdback: 10-18%
- ●Term: 4-12 months
Watch Out For:
- ●Taking too much during slow season
- ●Multiple MCAs stacked
- ●Ignoring total cost
- ●Using for unprofitable ventures
Alternatives to Consider:
- ●Equipment financing for big purchases
- ●Line of credit for ongoing needs
- ●SBA if you can wait and qualify