Using the TouchBistro cloud portal, Canadian restaurateurs who have been operating for more than six months, will be able to apply for a loan of $5,000 or more.

“We thought it was a natural fit for our companies to work together to alleviate some of the stress or paperwork in facilitating a loan,” said Alex Barrotti, CEO and founder of TouchBistro.

He added the partnership is the iPad-based POS system’s way of integrating services often required by restaurant owners. TouchBistro previously partnered with Shogo to integrate accounting software with its POS as well as 7shifts for staff scheduling.

“The point of sale is at the centre of the nervous system of the restaurant, everything has to flow through it,” said Barrotti. “We see it as the hub of the spokes of the wheel. This is just one of the many spokes we will come out with that are complementary.”

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While the partnership launched a referral-based lending program, the second phase will use sales data captured by TouchBistro to determine the feasibility of the loan.

“Based on the six-month business history, we can adjudicate the health of the business and provide them with the appropriate level of working capital,” said Anthony Lipschitz, chief strategy officer at Thinking Capital. “It’s really cash flow-based lending versus an asset-based approach.”

Barrotti added sharing data with Thinking Capital would require consent from the financing applicant. That data, however, provides valuable insight into whether or not the business is loan-worthy.

“When a restaurant tells you their cash flow or how they work, you have to rely on external verification,” Barrotti said. “This will let Thinking Capital make a better decision as to whether or not this is a good decision for an operating loan.”

Thinking Capital uses proprietary data and algorithms to make lending decisions based on how well a business is run and its resulting cash flow. Its technology-driven approach means restaurant owners have an increased chance of securing financing through Thinking Capital as decisions are based on a more holistic picture of how they manage their business rather than on personal financial and credit information.

“It’s more of an assessment of the health of the business, which is why we work with a ton of restaurateurs. A partnership with TouchBistro was such a natural fit for us,” Lipschitz said.

The interest rate starts at 7.99 per cent and increases based on individual performance and risk.

“There are no restrictions on how the loan is used by the restaurant.