Thirty-nine percent more restaurant owners have sought capital for their businesses this year compared to last year, according to a new analysis from Capital Access Network (CAN), a provider of alternative financial products for restaurants and other Main Street businesses. The company analyzed its use of funds data from a sample of more than 13,000 loan and Merchant Cash Advance applications from restaurants over the past two years.
This data determined:
- Thirty-four percent of the applications were requests for general working capital. Units in this category increased 53 percent this year compared to last year.
- A total of 32 percent of the requests were for capital to buy either equipment or inventory.
- Unit requests for inventory purchase capital are up 15 percent this year and unit requests for equipment purchase capital are up 4 percent.
- Eleven percent of the requests were for capital for remodeling projects and facilities upgrades. Units within this category are up 6 percent from last year.
"Restaurants are serving up growth again," said Capital Access Network CEO Daniel DeMeo. "Upgrading and replacing equipment, stocking up on inventory, renovating facilities, opening new locations and advertising were the reasons cited for half of our restaurant funding requests over the past two years. We're seeing increased interest in alternative financial products that can help restaurant owners capitalize on these business growth opportunities."
CAN has provided access to more than $1.5 billion to more than 22,000 restaurants, bars and coffee shops across the country throughout the past 15 years. CAN's new data reflects the general feedback from this year's National Restaurant Association Show in May.
Read more about industry trends.