Maybe you’re seeing a spike in outdoor dining requests and want to build out that perfect patio. Maybe your POS system is out of date — and really starting to hit a nerve with frustrated staff. Or maybe you just want to bring your food and hospitality to a broader audience by participating in local dining events.
Regardless of your reasons, one thing is clear: sometimes you just need a cash infusion to jumpstart the changes you want to see for your business. Unfortunately, a small business loan can often be difficult to obtain for many business owners — and aren’t always a perfect fit even for those who are eligible. And many other alternatives don’t account for the fluctuating business often experienced in the restaurant industry.
As a cash-flow friendly source of funding, our merchant cash advance may be a better fit for many businesses — and Rewards Network offers two options for restaurants to get the cash they need: Premier Restaurant Funding and Dining Credits. But which one is right for you?
Your Cash, Your Way
Before we get into the differences, however, we should first mention the many similarities — and benefits — our programs share.
The first and most important thing to understand is that merchant cash advance is not a loan. Instead, Rewards Network is actually pre-purchasing future receivables from your business. Precisely how this works differs between programs, but no matter which you choose, your repayment will be based on the ebb and flow of your business — not a fixed amount determined by a lender.
But the real Rewards Network difference is our comprehensive Marketing Services program, advertising your business to millions of dining rewards program members nationwide through social media, digital ads, and targeted emails to our members. We don’t just bring the cash, but also drive a motivated customer base through your doors again and again. Rewards Network is the only company that can do that.
In addition to the marketing that drives more customers to your restaurant, you’ll also get unparalleled customer data, helping you make smart business decisions, and access to our Comment Management System, allowing you to read and respond to reviews. These tools help you track trends happening in your restaurant and interact with your customers at any time, from anywhere — even after they’ve left your restaurant.
Are you looking to purchase expensive kitchen equipment? Undergo a renovation? Build out your dining area to accommodate more guests — or even open another location? The possibilities are endless. If your plans for your business require cash upfront, Premier Restaurant Funding or Dining Credits may be just the ticket.
With our Dining Credits program, Rewards Network is actually pre-purchasing receivables for just our dining rewards program members. Payment is forwarded to Rewards Network as a percentage of the total check generated by our members — meaning you’re only paying for the traffic we drive to your business.
Typically, under Dining Credits, the amount of pre-purchased receivables equals about 1.5 to 10 percent of your total credit card sales. Your business may receive a smaller cash infusion, but will also get the benefit of a pay-for-performance structure. It’s our challenge to drive members through your doors.
If you need more money upfront, however, our other program may be right for you.
Premier Restaurant Funding
With this program, Rewards Network purchases a percentage of your restaurant’s total future credit card sales. This generally amounts to approximately 5 to 9 percent of your total credit card sales, often allowing for a larger cash infusion.
With Premier Restaurant Funding, your business pays Rewards Network when it generates any credit card sale. However, like with Dining Credits, payment fluctuates with your business’s sales trend — unlike a small business loan, that has no variation for ebb and flow. Rewards Network is only paid when you are.
Want more ideas for how you can use a merchant cash advance for your business? Check out our four-part series on using a cash infusion for:
Or learn more about our programs — and which one is right for you.