Is it cold enough for you out there? Here’s hoping that the winter hasn’t completely cooled things off at your restaurant. Winter can be a challenging season for many Canadian eateries. The combination of harsh weather, reduced foot traffic and post-holiday slowdowns can put a strain on cash flow. There are ways, however, to get business to pick up.
You may have considered applying for a loan at your bank. But have you thought about a merchant cash advance? An MCA provides you with a more flexible and accessible option. It’s a funding solution that gets you the working capital your restaurant needs via its future credit and debit card sales. How can a merchant cash advance help your restaurant thrive throughout winter?
It can cover seasonal slowdowns.
Winter often causes a decrease in customers. This is especially true for restaurants that rely on patio seating or tourism. An MCA provides you with fast access to funds that can help cover rent, utilities, payroll and inventory costs during your slower months. Traditional loans require fixed monthly payments. A merchant cash advance, however, allows you to repay the advance as a percentage of your daily sales. This means that payments are determined by your revenue.
“The borrower agrees to repay the advanced amount over time, directly out of their credit and debit card sales on a daily or weekly basis until the full amount is repaid,” informs Helen Burnett-Nichols of NerdWallet, “The payments accelerate or slow down, based on sales volume, and there is generally no penalty for paying the cash advance off early.”
It can help you to launch a winter marketing campaign.
When business slows down, marketing becomes even more important. With an MCA, you can fund seasonal promotions. Think of such ideas as a “Winter Warm-Up” discount or a “Beat The Cold” sale. You may also want to consider launching a new loyalty program to keep your regulars coming back. A well-planned marketing push can drive more traffic to your restaurant, helping you maintain revenue during the winter months.
“You could also host winter-themed events that resonate with your audience’s seasonal interests,” suggests Symetric Productions, “If you’re in the food industry, organize a winter food festival featuring hearty, comfort dishes.”
It can enable you to upgrade your equipment or make repairs.
Is the cold weather tough on your restaurant equipment? An MCA can help cover the cost of repairs or upgrades for essential kitchen appliances and heating systems. By investing in new equipment now, you can significantly improve efficiency and prevent costly breakdowns during peak times. Vortex Restaurant Equipment also points out that upgrading your equipment can help to improve the quality of your food.
“Another reason why you may want to purchase new restaurant equipment is that – in general – newer equipment will typically yield a much higher quality product,” says their website, “When older machines begin to break down (and even accumulate contaminants over time), newer machines are much more likely to perform exactly as they were designed.”
Get in touch with Divvia today!
Divvia is proud to offer Canadian restaurateurs access to funding through our unique merchant cash advance program. In fact, we can offer you the funds your business needs in less than 24 hours! To learn more, please don’t hesitate to call us at 1-877-748-2884 or send us a message on our Contact Us page.
