Restaurant Financing: Thawing Credit, Frozen Hiring, and How the MCA Can Get Everything in Synch

On the restaurant financing scene, mixed signals have some stalwart eateries calling it quits while a new generation of lean up-starts jumps in the mix. It finally appears credit is thawing at a slow-but-sure rate. However, it’s the hiring belt that’s freezing-up this time. Perhaps MCAs can get everyone in line.

Credit Drips Slowly Back to Its Former Self
A couple of recent developments have positively affected restaurant financing. According to QSR Magazine’s Operations expert blogger Nick Diulio, the American Recovery and Reinvestment Act includes more than $630 million in funding to improve and strengthen SBA loan programs. Also, the Federal Government is expected to purchase up to $15 billion of loans from the SBA 7(a) and 504 lending program to encourage new small-business lending.

Hiring-timid Owners Stall Initial Progress
But it seems that all of the restaurant loan news isn’t always on the up-and-up. Restaurant News Resource reports that a general aversion to hiring new staff members as the recession slowly recedes is hampering the growth progress. In fact The NPD Group, a leading market research company, all segments of the U.S. restaurant industry experienced traffic declines in the first half of 2009.

Merchant Cash Advance Might Satisfy Everybody
Vendorseek, one of the fastest growing business resources online, reveals that the merchant cash advance financing is still ideal for organizations that depend on receipts--such as restaurants. No APRs and repayment based on monthly volume is an attractive arrangement for these businesses. Plus, immediate access to funds is another critical benefit.