Restaurant software and payment platform The view launched a new solution that offers cash advances to restaurants.
“It’s frustrating how many restaurateurs don’t qualify for traditional loans despite having a strong track record,” the Lavu CEO said. Saleem Khatri said in the press release. “The same way we’ve helped thousands of restaurants quickly switch to online ordering to survive the pandemic, we’re launching Lavu Capital to help more restaurants keep their doors open during tough times.”
With Lavu Capital, there is no need for a credit application or check, and there are one-time capital charges rather than interest, according to the release.
In practice, restaurants can view their pre-approved advance, select a principal amount and verify their bank details in order to accept the cash advance, the statement said.
After accepting, the restaurant receives the money within a day or two, pays a one-time flat capital fee based on the amount of capital accepted, and makes automated payments based on a percentage of sales on a set payout schedule. according to the version. .
Restaurants can use the cash advance for any business expense, according to the release.
“Our mission at Parafin is to grow small businesses by making it easier and faster to access financial services, starting with capital,” said Parafin’s CEO. Sahill Poddar said in the press release. “We are honored to work with platforms like Lavu who are heavily invested in growing the thousands of restaurants they work with, to fulfill this mission.”
The announcement comes about two months after Parafin, a FinTech launched in 2020 by Robinhood Markets veterans, raised $60 million in a funding round.
Read more: FinTech Parafin raises $60 million
“When we started the business during the pandemic, we noticed that small businesses weren’t getting the help they needed,” the Parafin co-founder said. Vineet Goel said at the time. “We want to be the one-stop-shop for these platforms to offer a variety of financial products.”
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