In September 2013, QSR wrote, “in the quick-service industry, the path to success is straightforward: offering good-tasting, quality food prepared quickly in a clean and courteous environment.” That seems clear enough; quick-service and fast-casual restaurants got into business with this objective at the top of their lists.

In September 2013, QSR wrote, “in the quick-service industry, the path to success is straightforward: offering good-tasting, quality food prepared quickly in a clean and courteous environment.” That seems clear enough; quick-service and fast-casual restaurants got into business with this objective at the top of their lists.

The writers go on to say, however, that a solid financial plan is just as important as the food the restaurant serves. Specifically, QSR says, “Businesses that have a sound and detailed financial plan grow more quickly and are better able to deal with potential issues or setbacks without losing forward momentum.”

Diversity of Restaurant Financing Strategies Helps Achieve Sustainable Growth

In order to maintain that forward momentum and create sustainable growth, restaurant operators will need both short-term and long-term plans for managing:

• Restaurant cash flow
• Day-to-day operations
• Inventory
• Employee payroll
• Restaurant franchise expenses

Tried-and-true strategies, like securing small business loans are harder to come by today than they were even five years ago. Banks have been limiting their risk by lending less (check out our August blog posts to read more!), and when they do lend, their criteria are more strict than ever. Still, traditional restaurant financing plays an important role, and small business owners should consider keeping  a variety of lines of credit open for when unexpected issues arise.

Restaurant cash advances are another way to meet cash flow, operational, inventory, payroll, and restaurant franchise costs. By diversifying your financing strategy with restaurant cash advances, also called merchant cash advances, restaurant owners are finding they’re better able to:

• Focus on the business – Rather than spending weeks with your accountant and providing paperwork in a near-constant stream, restaurant cash advances often require a simple one-page application. This quick and streamlined process frees up restaurant owners to focus on profit-driving activities, like customer service, quality food preparation, and employee training.
• Secure credit, even when credit isn’t perfect – Whereas the traditional path to restaurant financing may require perfect credit, merchant cash advances consider your credit card sales history and projected credit card sales. These financing arrangements aren’t loans and don’t require collateral, but are just as effective at solving short-term cash flow problems.
• Make restaurant improvements – Today’s successful restaurants are finding new ways to attract and keep more customers. A restaurant cash advance gives you the right amount of leeway to make the restaurant improvements you think are necessary to continue growing your business.

Diversifying your financing strategies is just as important to growing your restaurant as serving up quality food in a clean, courteous environment. You wouldn’t limit your menu to a single item; don’ t limit your growth potential by relying on a single cash flow strategy.