Financing program
Working Capital
Working capital covers the gap between money going out and money coming in. Food service runs that gap constantly: food cost is paid up front, labor is paid weekly, and revenue arrives one ticket at a time.
What is working capital for a food business?
Working capital is unrestricted funding used for payroll, inventory, rent, and repairs when money goes out before it comes in. Terms typically run 3 to 18 months, funding lands in days, and approval is based mostly on recent business bank statements rather than tax returns.
Estimates, not offers: Amounts, terms, and funding times are estimates based on programs commonly available in food service. Actual terms vary by program, lender underwriting, time in business, revenue, and credit profile. Nothing here is an offer of credit or a guarantee of approval. See source and method.
| Detail | |
|---|---|
| Typical amount | 10,000 to 500,000 |
| Term | 3 to 18 months |
| Time to funding | 1 to 3 business days |
| Documents | Application, 3 to 6 months of bank statements |
| Cost structure | Fixed daily, weekly, or monthly payment |
Estimates, not offers: Amounts, terms, and funding times are estimates based on programs commonly available in food service. Actual terms vary by program, lender underwriting, time in business, revenue, and credit profile. Nothing here is an offer of credit or a guarantee of approval. See source and method.
Where it fits
- /Payroll gaps
- /Bulk inventory buys
- /Seasonal slowdowns
- /Unplanned repairs
How the program works
- /Funds are unrestricted and can be used across payroll, vendors, rent, and repairs.
- /Terms are shorter than real estate or SBA financing and priced accordingly.
- /Approval leans on recent deposit history rather than long financial statements.
What it looks like in practice
A bar covers 6 weeks of reduced revenue during a street reconstruction project.
A distributor buys inventory at a volume discount and repays as it sells through.
Working Capital by business type
Working Capital questions
What can I use working capital for?
Anything the business needs: payroll, food and beverage inventory, rent, repairs, marketing, or covering a slow month. The funds are unrestricted.
How much working capital can a restaurant get?
Most offers land between 50 and 150 percent of an average month of deposits, so a restaurant depositing 80,000 monthly commonly sees offers between 40,000 and 120,000.
How long does approval take?
Most working capital decisions come back within 1 business day of receiving bank statements, with funding in 1 to 3 business days.
What credit score do I need?
Requirements vary by program. Options exist below 600, though pricing improves substantially above 650.
Will taking working capital hurt my chances at an SBA loan later?
Existing short term debt is counted in SBA debt service coverage, and it can often be refinanced into the SBA facility. Tell the lender about it up front.
Can I pay it off early?
Most programs allow early payoff, and some discount the remaining balance. Confirm the early payoff terms in writing before signing.