Merchant Capital throws embattled restaurants a lifeline through short-term finance
CAPE TOWN – Alternative lender Merchant Capital announced on Thursday that it had launched an innovative short-term finance product to give the hard hit restaurant sector a much-needed injection of working capital to help ease the economic impact of the national lockdown regulations.
Merchant Capital co-founder and chief relationship officer, Ryan Cohen said on Thursday that the product, RE-BOOT, would allow successful applicants to buy stock, pay wages, boost deliveries, deep clean and any other necessities in the weeks to come.
This product will be available to restaurant businesses with an average pre-Covid-19 monthly card turnover of R300 000 or more, and will provide capital at regular intervals, based on an assessment of the restaurant’s delivery/take-away revenue growth week by week. To qualify, businesses will either have had to offer delivery pre-Covid-19, or have added a delivery offering since the relaxing of lockdown.
“A lot of our merchants are in the restaurant industry, which has been among the worst impacted by the lockdown regulations. With so many restaurant owners fighting for their lives, we’re trying to help where we can, to keep their businesses afloat through the crisis,” said Cohen.
Merchant Capital founder and chief executive Dov Girnun said while the focus remained on being a responsible credit provider, Merchant Capital’s founding principle was to support small business in good times and bad. “Without working capital, many restaurants will not be able to re-open even for deliveries, pay their debts or support their staff.”
The Coronavirus pandemic has had a tremendous impact on business, and as a result, it has created significant uncertainty about what lies ahead.
This “unknown” was crippling business leaders from making decisions or taking strategic action. However, according to Sandra Beswick, director at financial and strategic advisory firm Fluence Capital, taking action and planning now, in the midst of the crisis, is vital for survival.
Beswick said this crisis had highlighted the need for more future-focused thinking, and while the unprecedented circumstances make it difficult to prepare, having a plan for various potential scenarios helps businesses to create strong future-proof strategies, and ensure longevity.