Embedded Finance for Restaurants: A Win-Win for Software Providers and Merchants
This blog discusses how embedded finance is revolutionizing the way restaurants access funding and how RMS providers can benefit from offering embedded finance products.Return to blog posts
Imagine being able to provide funding as an extra service to your customers with just a few clicks, without them ever leaving your platform. Embedded finance is emerging as a significant trend within the restaurant industry, as more Restaurant Management Software (RMS) platforms are now integrating lending solutions. This is revolutionising how restaurants access funding as restaurants can now apply for and receive funding directly from within their RMS platform, without having to go through a long, document heavy, ambiguous process through a traditional finance provider (e.g. high street bank).
A lifeline for underserved restaurants
Now imagine you’re a restaurant owner that has been seeking bank funding for months to open a new restaurant location or buy new machinery. You’ve spent hours filling out forms, providing additional information and waiting weeks between updates. Worst of all, you don’t even know if your application will be approved. One day, you log into your restaurant management platform and are presented with a fully pre-approved funding offer. 4 clicks and 5 minutes later, the money is in your account. It’s as simple as that! Thanks to the funding, your plans to open another restaurant become a reality. You’re able to attract more customers and generate more revenue. You’re also able to create new jobs and invest in your community.
Restaurants are increasingly reliant on RMS platforms like Toast and Lightspeed, to manage their businesses. These platforms can be used to track everything from inventory and sales to customer orders and employee scheduling. According to a 2022 survey by the National Restaurant Association, restaurant owners spend an average of 15-20 hours per week on their RMS. Restaurants are also often underserved by traditional financial institutions. This is because they may have high risk profiles, limited credit history and a desire to only focus their attentions on larger businesses. The beauty about embedded finance offered by alternative lending providers is that funding approval criteria isn’t as rigid as it is with traditional banks. It’s based on historical transaction data that informs the forecasted performance of the business.
What’s in it for software providers?
By offering embedded finance products through their RMS platforms, software providers can make it easier for their customers to access the financial products they need, while also allowing them to retain loyalty, generate new revenue streams, and stay ahead of the curve vs their competitors.
By partnering with Liberis, you can expect a significant boost to your bottom line. For every 10,000 customers you have, we can potentially add up to £1 million in additional revenue. Additionally, our data indicates that customers who receive funding from Liberis through are 12.5% less likely to churn as well as a 40% increase in transaction volumes, fostering long-lasting customer relationships and increased revenue streams.
Liberis is the leading embedded finance platform in the world. We offer a variety of benefits to both restaurants and RMS providers, including:
- Best customer experience in the world: We have a 4-click application journey with funding hitting the customer’s account in a matter of minutes if approved, and our customers love us with 67% of them coming back for more funding.
- Holistic service to partners: We provide partners with a holistic service, including speed to market and support. This product shouldn’t distract from your core business. Preventing disruption at all stages from onboarding to BAU is key.
- Speed to market: We can have you integrated with our platform in a matter of days or weeks rather than months.
- We know this space better than anyone in the market: We have a deep understanding of the market with 16 years of rich historical data that minimises risk during periods of market turbulence and volatility.
Embedded finance is a win-win for restaurants and RMS providers. It offers restaurants a convenient, fast, and trustworthy way to access the funding they need to grow and thrive. It offers RMS providers a way to reduce churn, generate incremental revenue, and stay ahead of the competition.
Don’t waste time, get in touch with us
If you would like to learn more about our embedded finance platform, please feel free to contact us by filling out the form below.
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