- The annual demand for Restaurants for merchant cash advances up to 30%
- pubs and bars advances increased by 37.5% in the last 12 months
Lender 365 Business Financing supported the financing needs of the nation’s hospitality industry, as restaurant demand for merchant cash advances increased 30% year-over-year. Meanwhile, pubs and bars showed an even greater need for flexible financing with a 37.5%* growth in the number of advances made by these businesses.
SMEs in the UK hospitality market are now turning more frequently to merchant cash advances as an alternative to bank loans, mainly because they are quicker to apply for and an increasingly attractive proposition for business owners on reimbursement, 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 just 24 hours to be approved is proving to be a lifeline for many in this sector. .
However, it’s not just the hospitality industry that’s benefiting the most from merchant cash advances, as 365 Business Finance saw a staggering 109% increase in transactions funded over the summer, compared to the spring. .
365 Business Finance managing director Andrew Raphaely said: “While our main customers have been food retail outlets during the pandemic-caused shutdowns since the spring, there has been a noticeable increase the number of restaurants, pubs and bars that accept merchant cash advances. – as they aim to renovate and expand now that social distancing restrictions have been eased.
“Over the past three to four months we have certainly seen an increase across the majority of business sectors, in terms of requests for funding from us. We attribute this to SMEs in the UK who are now making 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 on merchant cash advances versus bank loans, and why a merchant cash advance might be the best financing option available now that government grants and loans end: