Deli Funding

Deli owners need not worry about obtaining working capital in this economy. In a harsh recession, consumers still need to eat. With food being an essential requirement for survival, it's no surprise that supermarkets, restaurants, and delis continue to be the biggest game in town. There has been one shift within the market and that's on the price that consumers are willing to pay. High end restaurants have seen a decline in sales over the past few years. That has lead to increased demand for the low average ticket items offered by fast food restaurants and Delis. The average transaction at a Deli is roughly $10.

The corporate lunch at the downtown cafe is being replaced by meatball subs and a coke. Wherever you're from, that local hoagie, hero, grinder, or sub probably holds a special place in your neighborhood. There's nothing better than getting a homemade lunch and spending less than ten bucks. Interestingly enough, banks and traditional lenders have pulled away from offering credit to such an important part of the food service industry. If there's one thing banks are good at lately, it's bad decisions. Delis and low ticket food shops are a growing sector. Funding is still readily available to Delis but through alternative sources. Perhaps the best option out there is the Merchant Cash Advance. Merchant Cash Advances are a hybrid factoring product. A lump sum deposit is given to the deli and repaid via withholding a percentage of their credit/debit card sales up until the funds are paid back. There is a fee for the service involved but the benefits outweigh all the costs. Merchant Cash Advances are not personally guaranteed, require no collateral, have no time frame to repay, do not require good credit, and take less than week to receive funds. Merchant Cash Advance providers have embraced the demand for capital Deli owners have. As the the low cost food service industry expands, this easy source of liquidity is the spark for success. If that high end restaurant down the street didn't consider the local sub shop a competitor, it's time they did. Consumer spending patterns and Merchant Cash Advances are shifting the market in a whole new direction. Banks have missed out again.