Catering Business Loans are not the easiest thing to obtain in this economy. Banks and traditional lenders are proceeding cautiously. Fortunately There are still funding options available like a Merchant Cash Advance which can equip a catering business with the funds they need.
Many catering businesses will have to lay out cash ahead of time to order all the food and preparation materials but don't receive payment for the gig until after services are rendered. While the business model can be quite profitable, it has an inherent issue with cash flow. While we can all agree that the lavish wall street investment bank type catered events have are on a downturn, this just isn't the case with this food service industry as a whole.
A Merchant Cash Advance is a perfect fit for the catering business model. It provides a lump sum of cash that enables the purchase of all ingredients and materials. Once the sale has been paid for with a credit card, a percentage of it is withheld by the funding provider as repayment. They complement each other so well, it's almost as if Merchant Cash Advances were invented specifically for caterers.
SBA Loans have always been a potential option but with the recent end of the stimulus bonuses to banks who offer them, the chances of obtaining an SBA Loan are negligible. If you're a caterer, you should be looking into a Merchant Cash Advances before your competitors do. It's the edge you can't do without.
