Opening restaurants has always been popular with aspiring business owners, though it can be a uniquely difficult and competitive industry. The cost of starting a new restaurant business can be incredibly high, especially if you live in an area where renting commercial space is expensive. Most people who start a new business don’t have all the money for their expenses saved in cash, which means that they need to find loan and financing options to get their restaurants up and running. With crypto’s popularity rising, many entrepreneurs are interested in using their digital assets to finance their business ventures. Read on to learn more about whether or not you can finance your restaurant with crypto.
Can you use cryptocurrency to finance your restaurant?
Entrepreneurs who are also cryptocurrency enthusiasts may be wondering if they can use their crypto assets to finance their restaurant business. If you’re unfamiliar with cryptocurrency, it’s a digital currency that uses an online ledger with strong cryptography to secure transactions. Cryptocurrencies are usually purchased through crypto exchanges, which allow for the sale and transfer of digital assets. Just make sure you do your research so you can find the best cryptocurrency app to meet your needs.
One significant part of the high start-up costs in the restaurant industry is quality restaurant equipment. This includes both commercial kitchen equipment as well as catering equipment if you plan to offer catering services. Look into restaurant and catering equipment finance if you want the most cost-effective solution. A restaurant equipment lease allows business owners to manage the costs of equipment as a monthly payment rather than paying the full purchase price up front.
Some aspiring restaurant owners may be wondering whether or not they can use their digital currency to finance their restaurants. Paying suppliers or service providers directly with crypto assets may not be possible in most instances. You can still change your profits made through crypto investing back to fiat currency and use them to start your new business. That said, New York recently just saw a bar owner offer to sell his real estate to anyone willing to pay in Bitcoin, so cryptocurrency fans may be able to use their assets for more business expenses in the near future.
How can you use crypto in your restaurant business?
If you do want to incorporate cryptocurrency into your business, you could consider having your business accept cryptocurrency as a form of payment. Many businesses have started to allow cryptocurrencies like Bitcoin to be used in exchange for goods and services.
There are several ways restaurateurs can benefit from accepting cryptocurrency. One driving factor for small business owners is the fact that cryptocurrencies often have lower transaction fees than those that are applied to debit and credit card payments. Bitcoin can reduce their credit card processing fees down to below 1 percent in many instances, whereas traditional payment processors can charge between 2 to 4 percent.
Payment in cryptocurrency also means that you won’t have to deal with chargebacks, which can be a major fiscal headache for many businesses. When a chargeback occurs, the credit card company doesn’t just withdraw the money from the transaction from your merchant account and return it to the customer. In many cases, you will also have to pay a chargeback fee for the transaction.
While cryptocurrency has started to gain more widespread adoption in the restaurant industry as a payment option for diners, most commercial retailers and financial service providers have yet to begin accepting digital currency. There are some exceptions, and many experts expect that crypto will play a much larger role in the financial ecosystem as it becomes more popular with consumers. You may not be able to fully finance your new restaurant with cryptocurrency yet, but incorporating crypto into your business as a way for customers to pay for their meals can help increase your overall profitability.