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.
Pick a state to see whether this program is offered there, and what changes if it is limited.
| 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.
Cost of capital calculator
Working capital payment and total cost, side by side
Working capital is priced on the whole balance for the whole term, whether the money is working or sitting. Run the amount you need against the amount you were offered, or a 12 month term against a 24, and compare total dollars rather than the monthly payment.
Start from a common setup
Load a starting point, then edit any field in either column. Presets are examples, not offers.
Scenario A
Use the rate on a written offer, not an estimate.
Scenario B
Use the rate on a written offer, not an estimate.
Sensitivity: move one driver at a time
| Annual rate | Monthly payment | Change |
|---|---|---|
| 1.0% | $6,283.91 | -$8,828 |
| 15.8% | $6,795.94 | -$2,684 |
| 30.5% | $7,329.99 | +$3,725 |
| 45.3% | $7,885.51 | +$10,391 |
| 60.0% | $8,461.91 | +$17,308 |
| Term length | Monthly payment | Change |
|---|---|---|
| 6 months | $13,314.22 | -$4,350 |
| 9 months | $9,115.72 | -$2,193 |
| 12 months | $7,019.58 | — |
| 18 months | $4,929.65 | +$4,499 |
| 24 months | $3,890.86 | +$9,146 |
| 36 months | $2,864.28 | +$18,879 |
Change is measured against total cost of financing in the scenario the sliders control. Moving a slider edits that column, so the side-by-side updates with it.
Side by side
Scenario A costs $9,146 less on total cost of financing.
The arithmetic
payment = P x i / (1 - (1 + i)^-n), i is the annual rate divided by 12, n is the number of monthly payments. Total cost = (payment x n) - P.
Sources
- 1Amortizing payment formula: P x i / (1 - (1 + i)^-n)Standard time value of money identity. The same closed form used by the PMT function, with i as the monthly rate and n as the number of monthly payments.
- 2Annual percentage rate definition, 12 CFR 1026.22Consumer Financial Protection Bureau, Regulation Z. APR is the nominal annual rate that discounts a payment stream back to the amount advanced. We solve it numerically from the payment schedule and multiply the periodic rate by the number of periods per year.
- 3Bank prime loan rate, the base most business term financing is priced againstFederal Reserve, H.15 Selected Interest Rates. Published daily by the Federal Reserve. Enter the current prime rate when pricing a variable rate offer.
Education only: this calculator runs your own inputs through published arithmetic so you can compare working capital scenarios before you talk to anyone. It is not a quote, a promise to lend, an approval, or an indication of offers to come. Real terms come from a funding partner in writing after underwriting.
Availability: Program availability varies by state, and not every program is offered everywhere we operate.
Compare all 6 programs
How working capital compares against every other program on amount, term, speed, cost structure, and what underwriting expects. Compare total dollars repaid rather than the monthly payment.
| Typical amount | Term | Time to funding | Cost structure | |
|---|---|---|---|---|
| Equipment Financing | 5,000 to 500,000 | 24 to 84 months | 1 to 5 business days | Fixed monthly payment |
| Working Capital | 10,000 to 500,000 | 3 to 18 months | 1 to 3 business days | Fixed daily, weekly, or monthly payment |
| SBA Loans | 50,000 to 5,000,000 | 10 to 25 years | 3 to 12 weeks | Amortized interest, lowest payment of any program |
| Business Line of Credit | 10,000 to 250,000 | Revolving, reviewed periodically | 2 to 7 business days | Interest on the drawn balance only |
| Merchant Cash Advance | 5,000 to 250,000 | Repaid as card volume arrives | 1 to 3 business days | Factor rate, highest total cost |
| Buildout and Expansion | 50,000 to 2,000,000 | 36 to 84 months | 1 to 4 weeks | Fixed payment, often with a draw schedule |
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.
| Time in business | Credit | Revenue | Collateral | |
|---|---|---|---|---|
| Equipment Financing | Month 1 with a down payment, common by month 6 | Options below 600, best terms above 700 | No minimum when the quote and asset are strong | The equipment itself |
| Working Capital | 6 months of deposits | Options below 600, pricing improves above 650 | About 15,000 per month in deposits | General business lien, no specific asset |
| SBA Loans | 2 or more years, exceptions for acquisitions | 660 and above with clean recent history | Documented profit and debt service coverage | Business assets, often real estate, plus a personal guarantee |
| Business Line of Credit | 12 months | 650 and above for most limits | Consistent monthly deposits across 12 months | General business lien |
| Merchant Cash Advance | 4 to 6 months of card processing history | Options in the low 500s | About 10,000 per month in card volume | Future card receivables |
| Buildout and Expansion | 12 months, or a funded project with an executed lease | 650 and above for most structures | Sized to the project and the operator contribution | The project, with 10 to 30 percent operator contribution |
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.
Every request
- /Completed program application with ownership details
- /3 to 6 months of business bank statements
- /Time in business and entity details
Equipment and buildout
- /Vendor quote including delivery, installation, and freight
- /Contractor bids and the draw schedule on construction
- /Executed lease for the space
SBA and conventional term
- /3 years of business and personal tax returns
- /Interim profit and loss statement and balance sheet
- /Debt schedule and personal financial statement
- /Purchase agreement and seller financials on an acquisition
Working Capital by business type
Guides and calculators for working capital
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.