Rewards Network Does More than a Business Funding Group
The business funding group is the lender’s financial partner that offers to match up their clients with verified and trusted lending sources. They also offer a network of lenders, investors, and private lending sources which offer business loans. Many restaurateurs seek direct business lending as a means to obtain financing for their businesses. However, the business funding group does not offer direct business loans. They are an intermediary to a network of lending sources. Traditional banks are in the business of direct business lending, the business funding group is not.
The business funding group offers access to a network of lenders. It does not offer direct business loans. They act as an agent to bring two parties together. Like any company, they are in the business to make money. What is not often said is that the lending institutions they partner with are also in the business of making money. They make their money off of the interest in writing business loans. What this means to the restaurant entrepreneur is that essentially you have two parties making money from a single business loan. How this impacts the modern entrepreneur is that two parties are now taking money that should go directly back into growing your restaurant.
This begs a few questions, namely: why go through an intermediary when you can apply for a direct business loan? It makes no sense to double down on money going out of your restaurant, when that capital is needed to grow your business. The question the modern restauranteur also asks is whether or not there is an alternative to the traditional business loan available on the market?
Rewards Network Has the Better Alternative to the Business Loan
The modern entrepreneur is the vanguard of the restaurant industry and, in keeping with their unique characteristics, they tend to search for funding opportunities beyond the more traditional direct business lending. Rewards Network does not offer business loans, but instead offers merchant cash advances as a solution for the modern restaurateur. Our services go beyond the business loan as an alternative that improves your future cash flow and offers innovative marketing and information tools. Again, we are not in the market of direct business lending.
We offer restaurants merchant cash advances as a way to get the cash infusion you need plus improve your future cash flow with marketing and information tools. Whereas startup business loans only cover one aspect of the restaurant’s start up, Rewards Network offers a comprehensive program that increases cash flow by focusing on funding business improvements, and promotes your restaurant to a wealth of new customers. We offer an established dining program which attracts new customers, bringing traffic, and thus revenue, to your restaurant.
The capital from merchant cash advance can assist restaurant entrepreneurs with flexible financial solutions to cover expansion projects, equipment upgrades, renovations, and other business expenditures. While business loans may be able to offer cash infusion for similar purposes, they do not provide future revenue opportunities from a flow of newer customers. More importantly, many services offered by a business funding group put the borrower in the position of mortgaging their future for the immediate present quick-fix solution.
Manage Your Financial Future without Mortgaging it
The business funding group offers a wide variety of financing programs which are meant to make their business money. What they do not offer is the opportunity to grow the business of the borrower. While many products offer cash infusion, entrepreneurs often fail to inquire about charged interest rates. Financial resources used to pay interest could go directly back into your business, but don’t. Some products even offer the client the ability to mortgage their future financial stability for a short term fix. The idea of “investing in yourself” seems to paint a rosy picture of financial empowerment, when in fact what’s offered requires the client to invest their retirement account into your business.
It is your money, not a business loan. It is not even a cash advance on future sales and revenue. It is the client’s own retirement savings. If that is the direction a restaurateur wishes to go, it requires the liquidation of one’s retirement accounts, plus the taxes applied in doing so. But mortgaging your hard-earned retirement plan is simply not sound business. What Rewards Network focuses on is the future and offering opportunities to grow your business.
How the Rewards Network Merchant Cash Advance Works
It is actually very simple. Every time a diner swipes a credit card with a merchant, a portion of that sale is delivered to Rewards Network in recognition of the receivables purchased through our merchant cash advance. This process provides additional working capital with the guarantee that the monthly payments are always affordable, because the payments are based on actual sales, not forecasted sales and services. There are no fixed payment schedules as there are with business loans. There are also no punitive interest rates that exhaust much needed capital which comes with direct business lending. Rewards Network does not encourage you to mortgage your retirement plan in the way a business funding group may offer its clients as a solution to finance their businesses.
Our Easy to Access Merchant Cash Advance Options
It is important to stress that Rewards Network does not offer business loans, and is not in the market of providing direct business lending. What Rewards Network does offer are two easy-access merchant cash advance options:
Premier Restaurant Funding, which gives you faster access than most business loans to large quantities of capital. The amount of the advance is based on the pre-purchase of a portion of your total future credit card receivables.
Dining Credits, which functions differently than our Premier Restaurant Funding program in that only the future credit card receivables from Rewards Network members are purchased with the cash advance.
Regardless of which program you choose, the funding for either program is based on your current and projected sales.
No Fixed Repayment Schedules as with Business Loans
While a business loan does have its benefits, most restaurant owners have also realized that there are inherent risks associated with starting their business venture in debt. The most considerable issue with business loans is that the loan must be repaid on a fixed schedule at a specified amount each month. If it is not, the loan will default. These rigid payment schedules do not allow for variances in sales volume or seasonal fluctuations. The interest rates on these loans, even those secured through direct business lending institutions, can be punitive.
Since Rewards Network does not operate with the same structure as those who provide direct business loans, we are able to offer immediate opportunities to improve both your top and bottom line. We also do not create repayment schedules associated with direct business lending institutions. What we do offer is an opportunity to assist the restaurant entrepreneur with a comprehensive success plan to bring about substantive changes beyond cash infusion. While it goes without saying that every entrepreneur needs capital to get off the ground, it is what happens after initial launch that makes the difference in a restaurant’s success or failure.
Our cash advance program takes the ebb and flow of the economy into consideration. The business funding group and it group of lending partners do not. Business loans do offer the ability for a restaurant to open its doors, but they don’t offer much to support and grow the business. Although every business loan brings money to the table, it does not benefit the budding restaurateur beyond cash infusion. Rewards Network adds innovative marketing and analytics tools to every merchant cash advance. It is our belief that capital must go back into the growth of the restaurant, but that money alone can’t get the job done. Many of the services offered through a business funding group’s network of lenders do nothing to give the restaurant the opportunity to grow.
Rewards Network believes that your success is our success. This is why in addition to our two merchant cash advance programs, we offer easy access to our consumer survey tools, mobile websites, and online marketing options that come with your Rewards Network membership.
A Suite of Business Resources in Addition to Cash Advances
Clearly, cash advance programs are a more attractive alternative than direct business lending, but what else does Rewards Network offer its clients? The modern entrepreneur has taken the bull by the horns in terms of seeking new ways to market their restaurants. Social media has become a useful tool for businesses to communicate with the public. And it would be a gross underestimation to assume that without a strong mobile web presence, a restaurant could succeed in today’s market. Always remaining ahead of the curve, Rewards Network offers more than a cash advance program. In partnering with supported businesses, we provide an entire suite of marketing tools and feedback systems that bridge the communication gap between restaurants and their customers.
Our multi-marketing platform includes customized email messaging, social sharing, website advertisements, and mobile web exposure, as well as customized feedback, a comment management system, and customer insight media interface. Word of mouth is powerful. Imagine the power of six million strong enthusiastic economic influencer’s word of mouth viz-a-viz social media. The value is incalculable.
Fortune 500 Companies Partner with Rewards Network
Like any business, the restaurant entrepreneur depends on developing relationships which will grow their customer base, extending it beyond the locality of the establishment. Rewards Network takes pride in the business relationships we have developed throughout our thirty-year history. Among the influential network of companies are prominent brands such as Delta Air Lines, American Airlines, JetBlue Airways, Hilton Hotels, and Orbitz. These relationships offer a different type of consumer, unlike a business funding group. Rewards Network diners are sophisticated consumers who spend 25% more per check on average than other consumers.
While our cash advance programs offer a cash infusion alternative to a loan, Rewards Network knows this is only one facet of a successful business. Due to our extensive connections, we offer the opportunity to attract future customers who have a proven track record in stimulating the food and beverage industries. These customers are not just limited to frequent diners, but other economic stimulators such as frequent flyers, corporate cardholders, and highly motivated spenders.
While many of our competitors, like business funding groups, offer the opportunity for financial partnerships, Rewards Network offers cash advance programs coupled with the opportunity to grow your business. Do not mortgage Your future. Succeed in the future.
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Restaurant funding from Rewards Network is flexible, cash-flow friendly, and can be approved in as little as 24 hours. Go from surviving — to thriving — today.