Startup Business Loans May Not Be for the Modern Entrepreneur
Entrepreneurs are searching for economically advantageous means to fund their startup businesses. While startup business loans are an option, they can be difficult to obtain in the current economic climate. While many women are moving away from the support sector in the hospitality industry and embracing their roles as restaurant entrepreneurs, securing restaurant loans or even short term loans for cash infusion is an option that may not be readily obtainable.
SBA loans for women are available. However, the resources to help women entrepreneurs launch new businesses, grow their businesses, and compete in the global marketplace are not necessarily easy to access if their goal is success in the restaurant industry. The plight of women business owners and their challenges, including obtaining startup business loans, has been widely discussed, with reasons as varied as the number of female entrepreneurs wanting to change their lives and enter the marketplace as business owners.
Among the many reasons that business owners, including women business owners, may not be approved for startup business loans include: a lack of experience, a lack of collateral, , and inconsistent or poor cash flow and revenues. Another factor which keeps applicants, including women business owners, from obtaining restaurant loans, or even short term loans, is low or bad personal credit scores. This may be related to the fact that women control the bulk of consumer spending but may not have their names listed as primary on large assets such as home deeds, car titles, and more.
Female entrepreneurs may experience challenges accessing the capital required for the growth and expansion of their business. While SBA loans for women have their place, they may be challenging to secure. The SBA does not make direct loans to small businesses. Rather, the SBA (Small Business Administration) sets the guidelines for loans, which are then made by the SBA’s partners (lenders, community development organizations, and microlending institutions).
When a business applies for a small business loan through the SBA, the business is typically agreeing to fixed monthly payments over a definite term. This may not be the best alternative for a budding restaurant. Fortunately, there are alternatives available for restaurant owners who need financial assistance without the fixed monthly payment structure associated with restaurant loans. Rewards Network offers merchant cash advances as a solution to cash infusion for restaurants, including women-owned restaurants. In doing so, we offer an alternative startup business loans which require fixed monthly payments.
Why Choose a Merchant Cash Advance Over a Restaurant Loan?
Simply put, Rewards Network does not offer Startup Business Loans. Our Merchant Cash Advance program is not a restaurant loan, nor is it a short term loan of any kind. We do not offer SBA loans for women. What Rewards Network does offer is an alternative to loans as a way to get the cash infusion your business needs plus offer the potential to grow your business with marketing and information tools. Whereas startup business loans cover one aspect of the restaurant’s needs, Rewards Network offers a comprehensive program to increase cash flow by providing capital and promoting your restaurant to new customers.
We have established a dining program which attracts new customers, driving traffic — and thus revenue — to your restaurant. The capital from a merchant cash advance as an alternative to a restaurant loan can assist restaurant entrepreneurs with needs such as: expansion projects, equipment upgrades, renovations, and other business. While a restaurant loan may be able to offer cash to address some of these needs, they do not provide marketing designed to bring you a consistent flow of new customers.
Merchant Cash Advance Vs Restaurant Loans
There is a moment that is dear to every restaurant entrepreneur’s heart: Opening Day. However, the honeymoon period is a short one and your first months in business are often focused on keeping the doors open. You initially secured a restaurant loan but want to understand your options. The idea of a short term loan is enticing, but you do not necessarily want to take on more debt. It may not make sense to take on additional restaurant loans so soon after initial startup. The startup business loan will usually require fixed monthly payments over a definite term. This includes SBA loans for women.
The goal of the initial startup period is to build a reputation for your restaurant, not burden yourself with unmanageable debt. While a loan does have its benefits, most restaurant owners have also realized that there are inherent risks associated with startup business loans. The most significant consideration with loans, even short term loans, is that a loan must usually be repaid on a fixed schedule at a specified amount each month. These required payment schedules for loans, including SBA loans for women, do not necessarily align with variances in sales volume or seasonal fluctuations.
At Rewards Network, we do not offer startup business loans. Rather, we provide capital in exchange for purchasing future sales of your business as well as marketing services for your restaurant, as compared to startup business loans that do not offer these attributes.
How Rewards Network Merchant Advance Functions
It is very simple. Every time a diner swipes a credit card with one of our merchant cash advance restaurant clients, an agreed percentage of that sale goes to pay the receivables purchased through our merchant cash advance. Your payment is based on a proportion of actual sales, rather than forecasts. There are no fixed payment schedules as there are with startup business loans or short term loans.
Two Easy-to-Access Merchant Cash Advance Options
Rewards Network does not offer startup business loans, or short term loan. What Rewards Network offers are two easy-access merchant cash advance options:
First is our Premier Restaurant Funding program, which gives your restaurant access to capital through a streamlined due diligence process as compared to the underwriting process for most restaurant loans. We advance money to your restaurant and purchase of a portion of your restaurant’s future credit card receipts. The second option is our Dining Credits program. This program is similar to our Premier Restaurant Funding Program, except that only the credit card sales to Rewards Network members are used to pay us the receivables purchased with the cash advance. Regardless of which program you choose, your payment is based on actual credit card sales.
With SBA loans for women, an applicant may need to engage in a lengthy application process. Rewards Network offers a streamlined due diligence process, as well as marketing services focused on helping a restaurant grow its business. So, whichever program you choose, our restaurant funding is fast and simple, to offer the capital you need as an alternative to either a short term loan or an SBA loans for women.
Comprehensive Marketing Is Not Offered with Short Term Loans
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. Yes, it is true that startup business loans, as well as restaurant loans, may provide assistance to a restaurant opening its doors.
However, a loan does not offer more comprehensive support such as marketing to facilitate the growth of the business. A short term loan does not benefit the budding restaurateur beyond the initial cash infusion. 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 opportunities that come with being a Rewards Network client. Restaurant loans do not offer these features.
High Spending Customer Traffic
In addition to the benefits mentioned, Rewards Network also offer our clients an extensive array of marketing opportunities to a clientele of customers who exhibit high spending habits, driving traffic to the restaurants that join our network. We have longstanding relationships to power dining rewards programs for some of the most recognizable consumer brands. These customers are not just limited to frequent diners, but as also include frequent flyers, corporate cardholders, and other highly motivated spenders. A restaurant loan does not offer the exposure to millions of engaged consumers provided by Rewards Network’s marketing services.
Most importantly, we have the marketing expertise that will help grow your business. When you become a Rewards Network client, we help you market to customers in your local area and drive more business towards your restaurant. A startup business loan does not offer this same comprehensive approach to creating opportunities for a successful restaurant.
Our Partnership Network
Like any business, a restaurant depends on developing relationships to grow its customer base, extending it beyond the immediacy of their word of mouth. At Rewards Network, we have longstanding relationships with the nation’s leading airline, loyalty, charitable, and hotel companies to power their dining rewards programs.
We power dining rewards programs for brands such as Delta Air Lines, American Airlines, JetBlue Airways, Hilton Hotels, and Orbitz. These programs offer diners rewards for choosing your restaurant — and provide rewards to return to your location. They also offer a different type of consumer. Rewards Network diners are sophisticated consumers who spend 25% more on average per check than most consumers.
Six Million Strong Economic Influencers
Without social media, a business could easily fold due to lack of exposure. Conversely, positive online presence can establish a restaurant and drive its success. Rewards Network offers a comment management system; a multi-marketing platform that includes customized email messaging, social sharing, website advertisements, and mobile web exposure; and customized data and insights.
We have discovered that over 76% of consumers research online reviews prior to making their dining decisions. What this translates to, in terms of a strong community with over six million economic influencers, is a high media profile where tastes and expectations are expressed by sophisticated diners through high traffic restaurant reviews. Word of mouth is powerful. The power of a six million-strong enthusiastic, economic influencers is incalculable.
Short Term Loans Do Not Necessarily Contribute to Long Term Success
The climate for success, including women restaurant owners, in the restaurant business is on the rise. Rewards Network offers merchant cash advances, which can be a more favorable alternative for restaurant owners than SBA loans for women. So, before deciding to obtain a startup business loan, consider a merchant advance program through Rewards Network that will assist in growing your restaurant business for the long term.
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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.