Funding FAQ

Card volume is the primary driver of advance size in restaurant MCA. Funders typically look at your average monthly card settlements — debit and credit card sales processed through your POS — over the past three to six months. A higher, more consistent monthly card volume generally supports a larger advance. Multi-unit operators who can aggregate card volume across locations often qualify for proportionally more than a single location with the same revenue mix.

Yes — that's one of the structural differences between an MCA and a fixed-payment loan. Because repayment is collected as a percentage of your daily card settlements, a January slowdown or a soft stretch after a holiday rush produces smaller daily repayment amounts automatically. You're not locked into a fixed obligation that was sized for your busiest month.

For a genuine emergency, speed depends on how quickly you can supply your most recent three months of business bank statements and any card-processing statements. Many restaurant operators report decisions within 24–48 hours of submitting complete documents, with funds arriving shortly after. The exact timeline varies by funder and application complexity — but restaurant equipment emergencies are a common use case and funders understand the urgency.

Possibly, yes. MCA funders assess restaurants primarily on card volume and bank deposit history rather than credit score alone. Consistent monthly card settlements over three to six months can carry more weight than a FICO number. Many restaurant owners with scores in the low-to-mid 500s may still qualify when the deposit record is strong. An advisor can give you a realistic read once they see your statements.

The mechanics are the same — an advance sized against your card volume, repaid as a share of card settlements — but multi-unit operators often qualify for larger advances because funders can look at aggregated card volume across locations. A single-location café might qualify for a smaller advance sized to its own monthly card sales, while an operator running three concepts in two markets may have a meaningfully higher qualifying ceiling. Some funders underwrite each location separately; others consider the operating entity's combined volume.

To pre-qualify, just the short form — no documents required at that stage. To finalize an offer, most restaurant funders ask for three months of business bank statements, three months of card-processing or POS batch reports (if available), a government-issued ID, and a voided business check. Your advisor will confirm exactly what applies to your situation. Some funders request a copy of your business license if the concept is newer.

A merchant cash advance (MCA) is not a loan — it's the purchase of a portion of your future card sales, repaid as a percentage of your daily card settlements rather than a fixed monthly payment. A traditional bank or SBA loan carries a fixed payment schedule and generally lower financing costs, but a slower, more document-heavy approval process. An MCA trades a higher cost of capital for speed and flexibility: approval leans primarily on card volume and deposit history rather than credit score or collateral, and funds can arrive in as little as 24–48 hours. Which is the better fit depends on how quickly you need funds and whether your credit profile and timeline allow you to pursue a bank product instead.

No. Checking your options through this pre-qualification form does not affect your credit score. If you move forward with a specific funder after an advisor reviews your bank statements, that funder will explain their own credit-check process before asking you to authorize anything further. Many restaurant MCA funders rely primarily on card volume and bank deposit history rather than a hard credit pull.

Yes. Bars, cafés, coffee shops, food trucks, and quick-service concepts all fall within the same funding category as full-service restaurants — funders look at card volume and bank deposit history regardless of format. A food truck or counter-service café with lower average tickets but consistent daily transaction volume can still present a strong application. The main difference across formats is typically the size of advance a given card-volume level supports, not whether you qualify at all.

A factor rate is a decimal multiplier — commonly in the 1.1 to 1.5 range depending on the funder and the specific application — applied to the advance amount to calculate total repayment, rather than accruing daily or monthly the way an interest rate does. As an illustration only: a factor rate of 1.30 on a $30,000 advance means $39,000 in total repayment. Because a factor rate doesn't change based on how quickly you repay, it isn't directly comparable to an APR — our factor-rate calculator can help you see what a given rate means in dollar terms before comparing offers.

It depends on the funder. Some MCA agreements include a prepayment or early-payoff discount that reduces the total amount owed if you retire the balance ahead of schedule — often useful if a strong season lets you clear the advance faster than planned. Others charge the full factor-rate amount regardless of timing. Ask your funding advisor whether early-payoff terms apply before you sign, since it's one of the more meaningful cost variables between offers.

Some funders offer a renewal once a meaningful share of an existing advance — often around 50–75% — has been repaid, sized against your current card volume. Taking on a second, separate advance while one is still largely outstanding (sometimes called stacking) is generally not advisable: it combines multiple daily holdback percentages and can compress the cash available to run the restaurant. If you have an existing advance, mention it on your application so an advisor can walk through what's realistically available.

Most funders look for a minimum operating history, often around six months, though requirements vary by funder. A newer restaurant with strong, consistent card volume in its first few months can still present a qualifying case — funders weigh the trend and consistency of deposits, not just time on the calendar. If you're inside that window, an advisor can give you a realistic read once they see your bank statements rather than ruling it out on time in business alone.

Most funders want to see business bank statements for an account held in the restaurant's legal entity name, separate from personal accounts. An account that mixes personal and business activity, or doesn't match the entity name on the application, typically slows underwriting because the funder can't cleanly verify business card volume and deposits. If you're currently running the business through a personal account, opening a dedicated business account before you apply generally speeds up the process.

Yes. Card volume, deposits, and time in business all change month to month, and a restaurant that doesn't qualify today — coming out of a slow season, for example — may present very differently a few months later. There's no penalty for reapplying, and pre-qualifying again won't affect your credit score. Many operators check back after a strong month or two of card volume.