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✓ Funded in 24 hours✓ 500+ credit OK✓ $25K–$5M✓ Soft credit pull✓ Apply in 1 minute
Compare · 2026

Merchant Cash Advance vs Term Loan for Restaurants

Fast cash tied to card sales, or a cheaper fixed loan? Here's the trade-off for restaurants.

$25K–$5Mfunding range
24 hrstypical funding
500+credit scores OK
Restaurantsany POS
No collateralfor working capital

See how much your restaurant qualifies for

$25K to $5M on any POS — approved on your revenue, funded in as little as 24 hours. Higher limits than processor-tied lenders.

  • ✓ 500+ credit
  • ✓ 6+ months open
  • ✓ $10K+/mo revenue
1-Minute Application

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Start your application in about a minute. A real decision fast — soft credit pull, no obligation.

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🔒 Soft credit pull · will not affect your credit score

Short answer: A merchant cash advance is the fastest option and repays as a slice of daily card sales — great when sales dip, but factor rates can be pricey. A term loan costs less over time with fixed payments if you qualify. Restaurants with strong card volume but weaker credit often use an MCA; those with steadier books save with a term loan.

Reviewed by the Toast Funding Funding Team · Updated July 2026

How funding works, step by step

From application to funding in four steps — most contractors complete it within a day.

1

Apply in 5 minutes

Complete a short online application. It uses a soft credit pull that does not affect your score.

2

We review your deposits

Approval is based on your last 3 months of business bank statements — not tax returns or the contract.

3

Get your offer

Review your amount and terms up front, with any fees disclosed before you accept. No obligation.

4

Get funded

Sign and receive funds by ACH, often within 24 hours of approval.

MCA vs term loan

How the two compare for a restaurant.

CriteriaMerchant Cash AdvanceTerm Loan
Repayment% of daily card salesFixed payment
Slow daysSmaller paymentSame payment due
PricingFactor rateInterest rate
SpeedSame day – 24 hrs24 hrs – 3 days
Best forWeak credit, fast cashLower cost

Why restaurants fund with us

  • Underwritten on your sales and deposits, not tax returns
  • FICO 500+ accepted; approval on revenue
  • Funds in as little as 24 hours
  • Repay as fixed amounts or a share of daily sales
  • Built for quick-service, cafes, and fast-casual
  • No obligation — a soft credit pull to see options

What you need to apply

  • US-based restaurant or food business
  • 6+ months in operation
  • ~$30,000+ in monthly revenue or card sales
  • Last 3 months of bank statements
  • Valid EIN and business bank account

Frequently asked questions

Is an MCA good for a restaurant?
It's fast and flexes with card sales, which helps in slow seasons, but a term loan usually costs less if you qualify.
How does MCA repayment work for restaurants?
A fixed percentage of your daily card sales is remitted, so payments shrink automatically on slow days.
How fast can a restaurant get funded?
Most restaurants fund within 24 hours of approval; smaller amounts can be same-day. The application takes about 5 minutes with a soft credit pull.
Can I qualify with bad credit?
Yes — FICO 500+ can qualify because approval leans on your sales and deposit history, not just credit score.
Is this a business loan or a cash advance?
Both are available. The right structure depends on your revenue, credit, and how you prefer to repay — fixed payments or a share of your deposits. We show you the options you qualify for before you commit.
What can I use the funds for?
Any legitimate business purpose — payroll, materials, equipment, mobilization, covering the gap between draws, or growth. There are no restrictions on how you deploy working capital.
Are there any upfront fees to apply?
No. Applying and getting a decision is free, and any fees are disclosed in your offer before you accept — so there are no surprises.

Sources & further reading

Figures on this page are typical 2026 industry ranges provided for general information; your actual terms are set at application.

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Apply in 5 minutes with a soft credit pull.

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Comparisons reflect typical 2026 industry structures for general information and vary by lender and underwriting; your actual terms are set at application. Product and company names referenced are the property of their respective owners.

Get funded in 24 hours

Approved on your revenue, not just your credit. Start your 1-minute application.

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Why restaurants choose Toast Funding

Independent and POS-agnostic — a faster, higher-limit alternative to processor-tied offers. We are not Toast, Inc.

🍽️

Any POS, no lock-in

Toast, Square, Clover, Aloha, TouchBistro — keep or switch processors without losing your funding.

⚡

Funded in 24 hours

Decision in as little as 4 hours, money wired in 24–48. Same-day for clean files.

📊

Higher limits, approved on revenue

Up to $5M vs a processor cap. 500+ FICO accepted, underwritten on your deposits and sales.

Ready to get funded?

Approved on your deposits, not just your score. Funded in as little as 24 hours.

START MY 1-MINUTE APPLICATION →
Apply Now — Funded in 24 Hours →
Before you go

See how much your restaurant qualifies for

$25K–$5M · funded in 24 hours · 500+ credit OK. A soft credit pull that will not affect your score.

START MY 1-MINUTE APPLICATION →

No obligation · takes about a minute