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- Upgrading outdated dining rooms and repairing seating areas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
Restaurant Financing Process
Mantis Funding offers an efficient process to help restaurant owners secure the necessary capital to grow their businesses. Here’s a brief overview of the steps involved:
- Quick and Easy Application: Our online application process is designed for your convenience. Simply provide basic information about your restaurant, including financial details and funding goals. No lengthy paperwork or complicated procedures are involved.
- Eligibility Check: Once you submit your application, our team will conduct a quick eligibility check to determine if your restaurant meets our basic criteria. We have minimal credit score requirements, so even restaurant owners with less-than-perfect credit may qualify.
- Funding Approval: Our streamlined approval process allows us to provide funding decisions within hours, not days or weeks. This means you can move forward with your plans without delay.
- Tailored Funding Solutions: If approved, we’ll work with you to determine the most suitable funding option based on your specific needs. Our solutions are designed to cater to the unique requirements of the restaurant industry.
- Transparent Agreement: We believe in clear and transparent communication. Before finalizing your funding, you’ll receive a detailed agreement outlining the terms and conditions, ensuring you understand all aspects of your funding arrangement upfront.
- Fast and Secure Funding: Once the agreement is signed, we’ll work diligently to get your funding deposited into your business account quickly and securely.
- Ongoing Support: Our commitment to your success goes beyond funding. Our team is available to provide ongoing support and answer any questions you may have throughout your journey.
Throughout the entire funding process, Mantis Funding focuses on providing a fast, hassle-free experience. We understand the importance of access to capital for restaurant businesses and are here to help you secure the funding you need to thrive.
Minimum Requirements for Restaurant Financing
Mantis Funding strives to make the application process for restaurant funding as seamless as possible. To expedite your application, please be prepared to submit the following documentation:
General Business Information:
- Completed Application Form: This form will gather essential details about your restaurant, including its legal structure, ownership information, and contact details.
Financial Documentation:
- Bank Statements: Through our application page, you’ll be able to connect your business bank account with Plaid to securely share 3-6 months of bank statements, which will provide an overview of your business’s cash flow and financial health.
- Tax Returns: Your most recent federal and state tax returns offer valuable insights into your business’s profitability and tax obligations.
- Financial Statements (if applicable): For established restaurants, audited financial statements like a balance sheet, income statement, and cash flow statement may be required.
Additional Documentation:
- Business Licenses and Permits: Copies of any relevant business licenses or permits required to operate your restaurant in your state.
- Proof of Ownership: Documentation verifying any business assets you may have.
- Merchant Account Statements (if applicable): If your restaurant accepts credit card payments, recent merchant account statements can demonstrate your processing volume and financial activity.
Please Note: Specific requirements may vary depending on the type of restaurant you own and your state’s regulations. Contact Mantis Funding directly if you have any questions about the required documentation or have a unique business situation you wish to share with our team.
Credit Qualifications for Restaurant Financing
At Mantis Funding, we understand that building a strong credit history takes time and dedication. That’s why we take a more holistic approach to evaluating your eligibility for restaurant business funding. Here’s what we consider:
Business Viability:
Our primary focus is on the overall health and future potential of your restaurant. We’ll analyze your business plan, financial history, and cash flow to assess your ability to pay funding. A strong business model with a clear path to profitability can outweigh a less-than-perfect credit score.
Minimum Credit Score Requirement:
We have a minimum credit score requirement to ensure a baseline level of creditworthiness. However, this requirement is significantly lower than traditional lenders, making our funding accessible to a wider range of restaurants.
Alternative Qualifying Factors:
If your business credit score falls below our minimum requirement, we may consider alternative qualifying factors, such as:
- Time in Business: A longer track record of successful operation demonstrates stability and experience.
- Positive Cash Flow: Consistent and positive cash flow indicates your ability to manage your finances effectively.
- Strong Collateral (if applicable): Owning valuable business assets, such as vehicles or equipment, can provide additional security for the funding agreement.
Mantis Funding believes that access to capital shouldn’t be limited by credit score alone. If you have a viable restaurant with a solid plan for growth, we encourage you to apply regardless of your credit history. Our team will work with you to understand your unique situation and determine if our funding solutions are a good fit for your needs.
Why do Restaurants choose Mantis Funding?
Restaurant businesses choose Mantis Funding because of our tailored, flexible financing solutions designed specifically for the unique challenges of the restaurant industry. We prioritize speed and simplicity, ensuring that funds are accessible quickly to keep operations running smoothly. With transparent agreements and dedicated ongoing support, Mantis Funding provides not only the financial resources but also the expertise and partnership required to help restaurants succeed.
How soon can I get Restaurant Financing?
With Mantis Funding, securing the capital you need is quick and easy. Once you complete our simple online application, our team conducts a quick eligibility check and provides funding decisions within hours. Upon signing the agreement, funds are typically deposited into your business account within a few business days.
What are the Pros and Cons of Restaurant Financing?
Before deciding to secure external funding for your business, it’s crucial to research and consider both the benefits and potential drawbacks thoroughly. Here are some key points to help you make an informed decision:
Advantages:
- Quick Access to Capital: Mantis Funding provides fast approval and disbursement, enabling you to address business needs and opportunities swiftly.
- Flexible Funding Solutions: Tailored financing options designed specifically for your industry ensure that you receive funding that aligns with your unique requirements.
- Minimal Credit Score Requirements: Even businesses with less-than-perfect credit can qualify, making funding accessible to a wider range of entrepreneurs.
- Transparent Terms: Clear and upfront terms and conditions help you understand your financial obligations without hidden surprises.
- Ongoing Support: Mantis Funding offers continuous assistance and expert guidance throughout the funding process, supporting your business growth.
Disadvantages:
- Dependency on External Financing: Relying on external funding may lead to dependency, potentially affecting long-term financial independence.
- Qualification Criteria: While Mantis Funding has minimal requirements, not all businesses may meet the eligibility criteria.
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.
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.
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.
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.
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.
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.