Business Funding: Merchant Cash Advance
Location –Bristol
Finance Amount: £65,000
Background
A well-known restaurant in Bristol approached Pinnacle Business Finance for cash flow funding which they required quickly. This was because they needed to invest in the business to pay weekly pay roll due to continual recruitment. Recently they experienced a change of kitchen staff and had to replace these key members of staff through a recruitment agency. This meant they had a temporary dip in cash-flow and required funding to pay weekly pay roll along with supplier costs.
Solution
When the client initially got in touch with us at Pinnacle Business Finance we spoke around his future projections for the restaurant, along with the circumstances which led to the cash-flow pressures. It was prevalent that short term cash flow loan was required to boost the businesses cash flow. As they were an B2C business which took a lot of card payments, merchant cash-advance was a feasible funding solution for them. This was because turnover increased and decreased each month dependent on the level of trade. It was difficult for them to forecast the cash-flow each month and merchant cash advance was a low-risk finance solution for them. During the busier times of the year, they made higher repayments towards the cash flow loan and when it was quitter they paid back less. This maintained cash-flow and allowed them to hit the weekly pay roll as the merchant cash advance loan was implemented in under 2 working days.
The client has gone onto top up their merchant cash advance funding 4 more times because they have found it to be a quick and easy cash flow solution for their business.
