Working Capital for Restaurants
Food cost inflation, a broken walk-in, or a slow month can strain a restaurant's cash flow fast — and margins are already thin. MCA advances against your POS/deposit history so you're not waiting weeks on a bank while perishables spoil and payroll comes due.
Restaurants with 6+ months of operating history, $4,000–$6,000+/month in deposits, and a 500+ FICO qualify for MCA. Daily POS deposits (Toast, Square, Clover) create the consistent deposit pattern underwriters evaluate. Most restaurants qualify for $8,000–$100,000, funded in 24–48 hours.
Restaurant tip: Make sure all POS deposits (Toast, Square, Clover, Aloha) flow into one dedicated business bank account — not split across a personal account or multiple accounts — to maximize your qualifying deposit average.
A restaurant comparing a bank/SBA term loan to a merchant cash advance is weighing speed and thin-margin accessibility against lower headline cost. Here is how they compare when a walk-in fails or food costs spike overnight.
At a Glance
Need capital in days for an equipment failure or cost spike: MCA. Have strong financials and 2+ years to plan a renovation: a term loan is the lower-cost path.
| Feature | Merchant Cash Advance (MCA) | Traditional Term Loan |
|---|---|---|
| Approval basis | Average monthly POS/deposit history, 500+ FICO, 6+ months in business | Credit history, financials, collateral, 2+ years in business |
| Time to funding | 24–48 hours | 2–8 weeks depending on lender |
| Repayment | Daily/weekly holdback as a % of POS deposits — scales with sales volume | Fixed monthly payment regardless of a slow week |
| Collateral | None — a UCC-1 is filed against future receivables | Often required (equipment or real estate lien) |
| Best fit | Equipment failures, cost spikes, thin-margin operators needing speed | Established restaurants planning a renovation or expansion months out |
Yes. MCA has no minimum credit score cutoff beyond a 500+ FICO floor — revenue and deposit consistency matter more than credit score. A restaurant with a 530 FICO and strong, consistent POS deposits often qualifies for better terms than one with a higher score but inconsistent deposits.
Most restaurants qualify for 75%–150% of average monthly deposits. A restaurant averaging $20,000/month in POS deposits typically qualifies for $15,000–$30,000. Amounts scale with deposit volume, time in business, and FICO.
The 6-consecutive-month window captures both peak and slower months, giving underwriters a realistic full-cycle average rather than only your best month. If your restaurant has a genuine seasonal pattern, apply right after your strongest stretch so those deposits are part of the window.
Yes. MCA proceeds have no restriction on use within the business — covering a temporary spike in food costs, a bulk buy-in before a price increase, or a supplier deposit are all common uses.
No. Ghost kitchens, food trucks, and delivery-only concepts qualify the same way as a sit-down restaurant — underwriting looks at business bank deposit history, not physical format.
Three items: (1) most recent 6 consecutive months of business bank statements — all pages; (2) one-page application with business name, EIN or SSN, monthly revenue estimate, and ownership info; (3) government-issued ID. No tax returns, no menu review, no collateral.
One-page application, 6 consecutive months of bank statements, funded in 24–48 hours. No collateral required.
Or call/text: 330-238-3003
T.A.G. Business Funding
500 FICO minimum. Bank declines OK. Revenue matters more than credit score. Most decisions in 24 hours.
500 FICO minimum · $4K–$6K+/month revenue · Funded in 1–3 days
