Working Capital / Restaurants

Working Capital for Restaurants

Restaurants pay for food before they sell it and pay labor weekly while revenue arrives one ticket at a time. That gap is structural, not a sign of a failing business.

How does working capital work for restaurants?

Restaurant working capital is unrestricted funding for payroll, inventory, rent, and repairs, sized at roughly 50 to 150 percent of one month of deposits. Approval runs on 3 to 6 months of business bank statements, decisions usually come back within 1 business day, and funding lands in 1 to 3 business days.

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.

What this covers

/Funds are unrestricted across payroll, vendors, rent, repairs, and marketing.
/Sizing follows monthly deposits rather than profit on a tax return.
/Terms run 3 to 18 months with fixed daily, weekly, or monthly payments.
/Available to operators with 6 or more months of deposit history.
/Can be refinanced into longer term debt once the business qualifies.

Working Capital at a glance
	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

What it looks like in practice

A restaurant covers 7 weeks of reduced revenue during adjacent street construction.

An operator funds payroll through a delayed insurance settlement after a kitchen fire.

Other financing for restaurants

Equipment Financing for RestaurantsFinance ovens, walk-ins, hoods, dish machines, and POS systems for your restaurant. Funding in 1 to 5 days, no hard credit pull to see options.SBA Loans for RestaurantsSBA 7(a) and 504 financing for restaurant acquisitions, real estate, refinancing, and large buildouts. 10 to 25 year terms.Restaurant Buildout and Expansion FinancingFund construction, permits, hoods, furniture, and opening payroll for a remodel or a second restaurant location.Restaurants overviewFull service, fast casual, and quick service operators nationwide.Working Capital program detailsCover payroll, inventory, and slow months without stalling the operation.

Questions operators ask

How much working capital can a restaurant get?

Commonly 50 to 150 percent of an average month of deposits, so 80,000 in monthly deposits often supports 40,000 to 120,000.

How fast does restaurant working capital fund?

Decisions typically within 1 business day of receiving statements, funding in 1 to 3 business days.

What credit score is required?

Options exist below 600, with materially better pricing above 650.

Are tax returns required?

Not for most short term working capital. Bank statements and an application usually suffice.

Can I use it for payroll?

Yes. Payroll is the single most common use of restaurant working capital.