Revenue-Based Financing For Restaurants
At Mantis Funding, we provide restaurant business financing so you can stay focused on serving delicious food, covering your payroll expenses, and growing your customer base. Keep your restaurant thriving with the funds you need.
What You Need To Know About Funding Your Restaurant Business
From supply chain issues to high staff turnover rates, the restaurant industry is notoriously challenging. Not only are restaurant owners pulled in a million different directions daily, but they face pressure to handle equipment failure, seasonal cash flow problems, and high operating costs. With only so many hours in a day, owners must also manage a team while attracting new customers and tending to their current ones. The overwhelming nature of the restaurant industry creates stress and tight profit margins.
If a worldwide pandemic that affected over 70,000 restaurants wasn’t enough, the inconsistencies in seasonal cash flow can push restaurants to their financial edge. This is why restaurant funding can be an ideal solution for providing a financial cushion.
How Restaurant Business Financing Can Help Your Business
Financing your restaurant can fill any cash flow gaps you might be experiencing. As inflation continues to increase, your business model may even have to change to keep up with rising inventory costs. Many restaurants have chosen to close their dining rooms additional days of the week while finding creative ways to cut expenses. Restaurant business financing can solve a myriad of both short and long-term financial problems. Funding can be put toward:
- Training and hiring new staff
- Purchasing new ovens, fryers, dishwashers, and more
- Upgrading outdated dining rooms and repairing seating areas
- Covering payroll
- Purchasing new inventory like ingredients or plates
- Expanding your marketing efforts
- Testing new vendors
Frequently Asked Questions About Financing a Restaurant Business
Finding funds to grow your restaurant business might seem like an uphill battle. Mantis Funding is ready to provide answers to all of your questions along with personalized revenue-based financing solutions.
What is restaurant revenue-based financing?
Restaurant revenue-based financing is the purchase and sale of your business’s future revenue. This can be especially convenient for those in the restaurant business who may have slower months, but still need to upgrade their equipment or cover payroll costs.
Funding can be put toward any area of your business and terms are typically more flexible than pursuing funding through traditional lenders. Cash is provided to you upfront so you can tackle any unexpected expenses and continue running operations without hiccups.
How does revenue-based financing for a restaurant business work?
Revenue-based financing is an agreement that exchanges working capital (cash) for a set amount of your business’s future revenue streams. Revenue-based financing allows you to compensate for inclement weather, slow months, rent, and other factors that can all impact your bottom line. You are not required to give up any equity or control, and you can spend this financing on any part of your business. Repayment is made on a daily or weekly basis until the total amount is recouped within a specified repayment term.
While traditional lenders may have longer repayment terms with lower interest rates, revenue-based financing takes on a higher amount of risk, as it does not need restaurant business owners to have high credit score requirements to qualify for financing. Funding typically requires higher repayment amounts within a shorter repayment term.
How to qualify for restaurant business revenue-based financing?
When it comes to securing restaurant funding, most lenders have a list of requirements you’ll need to meet. They may require a good credit score, yearly revenue, the age of the company, business plans for funds, and tax returns.
At Mantis Funding, our eligibility requirements are simple:
- Your business has been operational in the U.S. for at least 6 months.
- You own at least 50% or more of the business.
- You can pass a minimal credit score check — low credit scores are ok!
If you meet these basic requirements, then we invite you to fill out an application for funding so our representatives can get started on the approval process.
Why choose Mantis Funding for restaurant business funding?
Mantis Funding understands the unique challenges facing restaurant owners in the industry today. With years of experience and a focus on providing exceptional customer support, we look forward to partnering with you and providing customized revenue-based financing solutions.
Our repayment structures are flexible and our system is designed to get funds in your bank account within one business day after terms have been established and you sign the financing agreement.
What’s the difference between loans and revenue-based financing?
Revenue-based financing is an alternative form of financing that exchanges working capital for a set amount of the business’s future revenue streams. Restaurants can benefit from revenue-based financing when they need to hire and train new staff or upgrade expensive restaurant equipment in their kitchen — all with fewer regulations than are commonly associated with traditional lenders. Companies don’t have to give up any equity either, as is typical with venture fundraising.
The amount of financing that a business qualifies for will ultimately be based on the total monthly revenue that it generates. Repayment structures are either daily or weekly, and they are directly debited from the business’ bank account.
View our How it Works page to learn about the three main differences between a traditional business loan and revenue-based financing.
Other Industries We Service
We service a wide variety of industries, including the retail, liquor, construction, and automotive sectors. Industries range from trucking businesses to nightclubs and new franchises. We also service other industries that are not included on this list and invite you to fill out an application for funding so our representatives can reach out to you. We understand the challenges of the marketplace and the cash flow needs for business owners and will be able to guide you through every step of the way.
Get in Touch
Want to learn more about our application process or still have other questions?
Our qualified representatives are standing by to lend a hand.