Why a Merchant Cash Advance Could Be The Perfect Funding Solution
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Why a Merchant Cash Advance Could Be The Perfect Funding Solution for Your Food Truck Business

The Growing Popularity of Food Truck Businesses

In the last ten years, food trucks and mobile businesses in general have grown tremendously in popularity. Whether your food truck business is seasonal, operates during special events and festivals, or serves as an additional mobile location for your home base, it is a great source of income and promotion and advertising. This is all great, however, operating a food truck comes with many tasks and stresses for business owners which often times can be rectified with working capital and funding. Let’s take a look at why an alternative funding solution such as the Merchant Cash Advance may be the right option for your food truck business to get the working capital it needs!

 

Funding for Food Truck Business Owners

Food truck businesses face many hurdles that could be made much easier with additional capital. For example, a food truck itself, on average, can cost up to $90,000, and the necessary equipment needed to operate one can reach up to $100,000. Additionally, special regulations require food truck business owners to following zoning and parking laws, and they must obtain all of the necessary health permits, as well as food and business licenses every year. On top of that, since food trucks are basically restaurants on wheels, they still face strict health and safety inspections. Lastly, to keep new business coming in and to continue generating revenue, food truck business owners must have strong marketing and advertising campaigns put in place. With more and more food trucks of all kinds popping up virtually everywhere, competition is stiff meaning many of these business owners must reach out to social media, marketing, and advertising professionals for help – this kind of help can be costly. All of these issues make access to working capital a must!

Majority of business owners, let alone food truck business owners, know how hard it is to obtain working capital through a traditional bank loan. Just take a look at our recent blog, “3 Reasons Why Business Loan Applications Get Declined By Traditional Lenders and Alternative Financing Solutions” The tedious process of filling out a lengthy application, providing various documents, and personally guaranteeing one is something many business owners just don’t have the time for. Then, waiting weeks just to receive an approval, or an unfortunately decline can be a major setback, but there is an alternative. Introducing, the Merchant Cash Advance.

A Merchant Cash Advance is a short-term financing transactions that are collected through a set percentage of your Visa and MasterCard sales  that are accepted at your place of business. Probably the most common term used in the industry. These do not have a set repayment schedule and are based on the volume of your businesses credit card processing sales. These are usually only guaranteed by the future sales of your business. What are the perks? A Merchant Cash Advance has no set repayment schedule, so you can pay at your business’ own pace without strict penalties for late payments. Additionally, there are no minimum or maximum funding amounts, no personal guarantee, collateral or credit requirements, an approval can be offered in 24-48 hours, and funding can occur in as little as two days! What’s needed to qualify? All a Merchant Cash Advance lender usually needs to present your business with an offer is a simple one-page application, four months of recent bank or credit card statements, at least $7,500 in gross monthly sales and at least $35,000 in gross monthly credit card sales, and no open bankruptcies or legal issues. Far much less than a traditional bank loan requirements!

A Merchant Cash Advance could be just the answer to your food truck’s working capital prayers! For more information on Merchant Cash Advances and other alternative funding options, click here.

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