Latest / Cash Flow Conversations with Fexingo: Working Capital, Receivables, and Small Business Finance
How a Restaurant Used Prepaid Cards to Fix Cash Flow
When customers pay with credit cards, restaurants wait days for funds and lose 2-5% in fees. This episode examines how a Chicago ramen shop flipped the script by launching its own prepaid loyalty card program, collecting cash upfront and cutting processing costs to near zero. Lucas and Luna walk through the economics: how $200,000 in prepaid balances became interest-free working capital, how the card reduced the payment float from seven days to zero, and why the model works best for businesses with repeat customers and predictable margins. They also discuss the operational risks — regulatory…
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