Lavu launches Lavu Capital to provide accessible financing for restaurants
ALBUQUERQUE, New Mexico–(BUSINESS WIRE)–Lavu, a leading global provider of restaurant software and payment solutions built by restaurant owners, today announces Lavu Capital, offering restaurant owners cash advances to provide financing that can be used to manage and grow their activities. Powered by Parafin, a full-stack integrated fintech company, Lavu Capital offers restaurants, primarily small businesses, easy access to quick capital not typically available through traditional bank financing.
Unlike a loan that charges interest, merchants agree to pay a portion of future sales in exchange for fast, efficient funding, all for a low, fixed capital fee based on the cash advance amount. With Lavu Capital, pre-approved merchants who demonstrate consistent or increasing sales have access to a cash advance that can be used for any business expense such as equipment, staff, marketing, and rental costs. . This eliminates application and credit check requirements that often prevent small businesses from receiving bank financing.
Here’s how it works:
Eligible merchants view their pre-approved advance offers in their Lavu dashboard, toggle the slider to select the principal amount that best suits their business, and verify bank account details to accept the advance from funds.
After acceptance, the merchant receives the funds directly into their bank account within 1-2 business days. This requires no additional paperwork and has no impact on credit rating.
The trader will pay a fixed, one-time capital fee, which depends on the amount of capital accepted.
Payout is automated on a set payout schedule and is based on a percentage of sales through Lavu determined prior to capital acceptance. There is no interest, no minimum payment and there are no late fees.
“It’s frustrating how many restaurant owners don’t qualify for traditional loans despite having strong track records,” said Saleem Khatri, CEO of Lavu. “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.”
“Our mission at Parafin is to grow small businesses by making it easier and faster to access financial services, starting with capital,” said Sahill Poddar, CEO of Parafin. “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.”
New and existing restaurateurs can learn more at https://lavu.com/newsroom/lavu-launches-lavu-capital-accessible-funding-restaurants or contact Lavu Customer Success.
Lavu is the world’s leading restaurant management platform for small and medium-sized restaurants. The Company’s products include an award-winning mobile point of sale, online ordering, payment processing and an accounts payable suite. Embodying the values of hospitality in its 24/7 support to restaurant partners in more than 65 countries, Lavu helps businesses grow with solutions designed for restaurants by restaurateurs. Based in Albuquerque, New Mexico, Lavu was the first iPad outlet in the Apple App Store and continues to deliver the latest features and restoration features. Learn more at Lavu.com.
Parafin is a complete integrated financial infrastructure that serves small businesses better, faster and at lower cost. Parafin works with the platforms that small businesses already use – such as marketplaces, payment processors and software providers – to help small businesses meet their cash flow needs, invest in their growth and run their business. Parafin was founded in 2020 by Sahill Poddar, Ralph Furman and Vineet Goel, three of Robinhood’s first employees. Together, they served as Head of Machine Learning, Senior Data Scientist, and Head of Risk and Fraud, respectively.