Editor's note: Like everything else in this new millenium, funding and loan techniques have been turned on their head by apps and the Internet. Things can be done in a fraction of the time and fuss it used to take the local bank loan officer in the 1980s to get approval. Back in 1982 I opened a third retail location for my business and it took two months to get approval for the loan from Bank of NY, which, due to a period of crazy inflation, was at 24% interest. Today, it's a whole new world!
Mark Verespy is spending less on energy at his restaurant this spring because of equipment he purchased with alternative funding.
Verespy is the owner of The Killarney, an Irish-inspired pub and restaurant located at the base of Okemo Ski Mountain in Ludlow, Vermont. In the past year, he purchased a 10-burner Vulcan range with twin ovens, a Southbend 5-burner stove and a True double-door refrigerator--nearly $12,000 in new equipment. He also replaced his old heating system with a heat-transfer system that provides both heat and AC, something that The Killarney needs to keep turning out the food at what is increasingly becoming a year-round operation.
“We replaced some really antiquated equipment,” says Verespy, who has run his restaurant for more than a decade, “and all the equipment we bought is so much more energy efficient than the equipment we used in the past. We’ve already seen a drastic decrease on our gas, propane and electric bills.”
Service, by contrast, is way up. “The staff can complete their jobs faster and better with the new equipment,” Verespy says. “They all buy us time and, in the restaurant business, time is money. If something takes an extra 10 minutes, you lose an hour real quick.”
Even though The Killarney now attracts customers all year round, Verespy is still cautious about laying out too much cash in the slower months. So he considered going to a bank for some of the equipment financing he needed. “We always do our due diligence and we always think about the banks,” he says, noting that he had options for traditional financing because he owns the building in which his restaurant is located. “I thought about an equity line of credit this time.”
Instead, he returned to an alternative funder that he has used more than a dozen times, Bizfi. “Bizfi is the most convenient option available,” Verespy says. “It takes the least amount of my time, and zero hassles--and that to me is precious. I pick up the phone, call my Bizfi rep and I have the funds in my account almost immediately.”
Verespy says that kind of speed was particularly important for the refrigerator, which wasn’t on his original upgrade list. “The refrigerator went down and it had to be replaced right then. It was critical to get it replaced in two to three days max. Thanks to Bizfi, we did just that.”
“Bizfi,” says Verespy, “gives me peace of mind that if something critical goes down, I don’t have to worry about how I’m going to get the funds to replace it.”
Some quick facts about Bizfi:
1. Number of years Bizfi is in business – 11
2. Founded in 2005, Bizfi has provided 1.6 billion to more than 29,000 merchants
3. Average financing term length: 10.76 months
4. Average interest rate: Not all the alternative financing products on the Bizfi platform charge an interest rate: Some products provide merchants with capital by purchasing the small business’s future revenues. Of the 8 products from 45 different lenders Bizfi provides through the platform, not all of them are interest based and rates vary.
5. Average employee size of borrower: The size of the business varies depending on the industry, but typically ranges from 5-200 employees.
6. Average funding size: $40,000
7. Distribution of companies by sub-industry: construction, restaurant, retail and service
Bizfi, is the premier FinTech company combining aggregation, funding and a participation marketplace on a single platform for small businesses. Bizfi's connected marketplace instantly provides multiple financing options to businesses from a diverse assortment of funding partners and real-time pre-approvals. Bizfi's product suite includes short-term financing, franchise financing, lines of credit, equipment financing, invoice financing, medium-term loans and long-term loans guaranteed by the U.S. Small Business Administration. The Bizfi API provides a turnkey white label or co-branded solution that easily allows strategic partners to access the Bizfi engine and present their clients with financial offers from Bizfi lenders all while maintaining their customer's user experience. Click to visit the Bizfi website.
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