Australian restaurant owners have new and exciting opportunities for growth as we say goodbye to fiscal year 2014 and once again focus on new opportunities to serve more customers and drive overall sales.
Fortunately, the current economic landscape for the industry is very positive. In the first half of 2014, restaurants reported a 3.17 percent national growth in business revenue.
The new trend of ordering online is also contributing further to the restaurant industry’s favourable results to date, according to the Australian Restaurant and Catering Association.
Encouraged by this news, many restaurant owners are looking to expand and capitalise on the growing industry. Some avenues for growth include opening up new locations or franchises, setting up new food delivery options, hiring more staff, expanding seating areas and operating for longer hours. But this wish list for most business owners cannot be achieved simply by reinvesting profits as those margins can be very tight.
A new way forward
During the last five years, and due to the ongoing effect of the economic downturn, more and more traditional banks have become hesitant to lend to small businesses within the restaurant industry. As a result, many business owners within the industry have started to look elsewhere for financing options that go beyond traditional banks.
These owners have welcomed the emergence of the new world of alternative finance, where loans get processed faster, and often with no security or financials required for approvals.
Alternative lending is any form of business lending not associated with a traditional bank, credit union, or the government. Alternative lenders separate themselves from traditional banks by being forward thinking and utilising technology to the benefit of the customer.
Mainly, most alternative lenders offer funding through a merchant cash advance; a program that provides a business with a sum of capital by purchasing a future amount of said business’ future credit and debit card sales. Restaurants are among the best candidates for this type of funding because many process a high volume of credit card transactions.
What makes alternative lending a winner?
Alternative finance is able to respond to the working capital needs of the restaurant industry, and in fact most other industries ever changing environment by allowing the owners to make quick decisions and capitalise on favourable market conditions. Unlike traditional banks, alternative finance agencies are able to work with the cash flow of their clients and offer greater flexibility.
Restaurants and other businesses within the hospitality industry also have exceptional approval rates. For example, our firm services all of Australia, and approval rates of 95 percent are attained for qualified customers, meaning that business owners can make decisions with confidence.
Alternative lenders are committed to supporting the small to mid-sized enterprise sector in Australia by providing assistance where traditional banks have failed. In addition to these benefits, alternative financing will not require business or personal assets to be placed as collateral and are always approved as unsecured loans.
The time is right for business growth in Australia especially for restaurant owners, so it is a great opportunity to try new ideas in growing your business with great alternative financing options.