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June 30th, 2014

by Total Food Service

Finding Money for Improvements Fast

How Venture Cash Advance provides capital advances to help restaurants reach their business goals.


Many foodservice operators are faced with the constant challenge of finding the money to replace equipment, update their interior space, buy inventory, and expand or hire additional staff. Since a lot of restaurant owners already got loans from banks just to start up their business, going “back to the well” through a second mortgage, isn’t usually the best option. What’s more, traditional banks can take from three to five months just to get a loan approved. “Restaurant owners are great at moving the sand around the sandbox to make ends meet,” asserts Randy Boyd, COO of Venture Cash Advance. "But when restaurants go through a bad winter of slow business, they don’t have the luxury of applying for a loan in April and then wait in order to upgrade their outdoor patios so they can capture business during the summer months starting in May,” he adds.

That’s where Venture Cash Advance comes in. “The mission of our business is to offer alternative financing solutions to companies that aren’t based on their credit rating, but on their past performance,” says Boyd. Launched in January 2014 of this year, Venture Cash Advance was five years in the making. The company’s product offerings range from the traditional merchant cash advance, to bridge, equity, and asset financing. “Our team is dedicated to making the process as easy and streamlined as possible. Venture Cash Advance focuses on each clients’ individual circumstances and needs to provide flexible, creative solutions to get a business the capital it needs, when needed,” says Boyd. “Further, once the application is completed, the cash advance can be processed in as little as three days,” he adds.

Knowing that, how does a foodservice operator go about getting a cash advance? First, the business needs to be up and running for at least six months to a year. Once that criteria is established, a food service operator can simply go online and fill out the application. There are two ways the company processes cash advances, depending upon whether a restaurant uses credit cards or just takes cash. “If a foodservice operator processes credit cards, all we need is the restaurant’s four most recent months merchant processing statements and four most recent months business checking statements,” states Boyd. “If the restaurant only does cash transactions, we need the restaurant’s most recent months business checking statements and last year’s business tax returns.” Once the loan is approved, Venture Cash Advance purchases a small portion of the restaurant operator’s future revenue for a discount, upfront.

Unlike a bank, Venture Cash Advance does not base its approval process on credit ratings and collateral. “The other benefits to our service is that it’s fast and easy,” points out Boyd. So once the cash advance is approved, how does a restaurant pay the cash advance back? “Payback is automatically withdrawn, in small amounts, from the restaurant business’s checking via ACH or a percentage of credit card processing each day,” Boyd answers. “This method helps get the cash advance paid back within six to nine months.

Even though Venture Cash Advance services a variety of industries, Boyd estimates 50 to 60 percent of its clients are from the foodservice industry. “Once a company first uses our services, 80 percent of them come back to use our service again,” points out Boyd. “It’s stressful enough managing the cash flow of a restaurant business. We take care of that aspect of the business for them so foodservice operators can focus on what they do best: running a successful restaurant.” 

For more information or to apply for a cash advance, simply go to www.venturecashadvance.com. Call John Mutchko, National Sales Manager at 201-300-8200 ext. 2011 or E-Mail: jmutchko@venturecashadvance.com

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