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Entrepreneurs in Search of the Right Financing
Silvio Beiler, an experienced restaurateur and managing director of L’Osteria in Berlin, had this same experience while planning his expansion. After attending a concert at the packed Mercedes-Benz Arena in Berlin, he and thousands of other attendees streamed out of Germany’s second-largest multipurpose arena. Almost everyone’s stomach was growling, but there were only a few food stands nearby. The entrepreneur, with an eye for an excellent franchise location, immediately recognized the potential of the massive multipurpose arena right on the Spree. Since there was no appealing restaurant to round out the concert evening, the Beilers said goodbye to their friends, and everyone headed home.
Full financing not available from banks
That very same day, Silvio Beiler starts gathering information. There are plans to build a large food court with numerous restaurants right on the adjacent Mercedes-Platz. That’s it! The next day, the franchise executive contacts the people in charge, and shortly thereafter, he has one of the coveted restaurant contracts in his pocket.
So far, everything is going well. The franchisee is already planning to expand his two highly successful restaurants in Berlin and Potsdam to a total of five locations. Armed with these plans and the strong financial results from the two existing restaurants, he schedules meetings with banks… and is turned down every single time. To fund his restaurant expansion plans, the L’Osteria managing director needs a financing mix that traditional banks simply do not offer.
Financing with a Wider Range of Options and Better Service
Frustrated, Silvio Beiler searches for alternatives. He finds what he’s looking for on the financing platform kapilendo. The business financing provider has set itself the goal of processing complex financing requests from small and medium-sized enterprises more quickly, efficiently, and with a greater focus on service. From traditional loans to subordinated loans, the L’Osteria managing director has various financing combinations at his disposal.
The entrepreneur’s initial skepticism toward this financing alternative quickly fades. He experiences a level of appreciation from the kapilendo staff that is completely unfamiliar to him from his dealings with banks. The prepared business plan and the strong financials of his two L’Osteria restaurants point to a quick implementation, and the online platform’s credit analysts give their approval.
Financing mix of debt and equity
A financing package consisting of a loan and a subordinated loan is put together. In an initial funding round, Silvio Beiler raises 100,000 euros from private investors through a traditional loan on kapilendo. The goal of the financing is to prepare the personnel and infrastructure for his expansion plan. In the next step, Beiler needs 750,000 euros in subordinated capital to establish at least three new locations in Berlin. After two weeks, the funds are raised, and financing is secured for the restaurants, which are already in an advanced stage of planning at this point.
Successfully Implementing Growth Plans
That was two years ago. In the meantime, the three planned L’Osteria locations have opened. In addition to a high-revenue location in Berlin-Mahlsdorf and one in a prime location between Alexanderplatz and Hackescher Markt, the group also includes the one right next to the Mercedes-Benz Arena. Before and after every concert and every home game of the Alba basketball team or the Eisbären ice hockey team, 10,000 event attendees flock to the food court, and a large portion of them head to Beiler’s L’Osteria.
Thanks to the high liquidity provided by the subordinated loan, he secured all three restaurant locations, remodeled them in the typical franchise style, and now serves pizza and pasta to the hungry attendees.
A Marketing Boost as a Welcome Side Effect
In addition to the successful implementation of his expansion plans, the path through kapilendo had another welcome side effect for Silvio Beiler: The financing took place with high visibility on the online platform, which supports each project with its own marketing campaign. All investors who were inspired by his concept and invested in his project received a bonus card valid for several years. Many of these investors have since become his loyal regular customers, who use their bonus cards diligently and generate substantial revenue for the restaurant.
Funding in Record Time
The successful restaurateur is completely convinced by the financing platform—from the speedy processing and the respect he receives as an entrepreneur to the additional marketing boost for his restaurants. And one thing is certain: Should he need financing again for additional locations or a short-term loan ranging from 100,000 euros to 2.5 million euros, he will turn to kapilendo once more. That’s because financing projects of this size are funded on the platform in some cases in under 30 minutes.
