Restaurant Line of Credit — Draw Capital As Needed

A restaurant line of credit is the right tool for operators with variable cash needs that don't fit a single lump-sum advance. Instead of taking $200,000 today and paying interest on all of it, you get approved for a $200,000 line, draw $30K this week for an unexpected vendor invoice, pay it back over six weeks, then draw again for next month's slow period. Pay interest only on what you've drawn and only for the time it's outstanding.

Who Should Use a Line of Credit

Restaurants with seasonal cash flow swings (patio season operators, ski-town restaurants, beach destinations); restaurants with variable catering revenue (cash deployed before deposits arrive); operators with multiple locations where one location periodically needs working capital infusions; restaurants planning a remodel or rebrand where exact capital timing is unknown.

How a Line of Credit Differs From a Cash Advance

A cash advance gives you the full $X today and you start paying it back tomorrow with daily/weekly fixed payments. A line of credit is a $X commitment that sits at zero until you draw. You only pay for capital you've actually used. For ongoing operational flexibility, lines are usually the better structure. For a single specific use (one equipment purchase, one specific vendor pre-payment), cash advances are simpler.

Draw Mechanics and Speed

Once your line is established, draws happen via online portal — request the draw, funds in your account same business day. Most operators with active lines treat them like a glorified business checking account: draw to fill a specific need, repay when the cash comes in, repeat. Some operators only draw twice a year. Both patterns are fine.

Line Sizes and Underwriting

Lines from $25K to $1,000,000 depending on your monthly deposits and operating history. We size lines at roughly 1x trailing 12-month average monthly revenue for most operators, with adjustments for cash flow consistency and existing debt service. Renewals every 12-24 months as your operation grows.

Cost Structure: What You Actually Pay

Interest accrues only on the drawn balance. Most operators with active lines pay 1-2% origination on the line itself plus interest in the competitive APR range depending on credit profile. There's no penalty for not drawing — if your line sits at zero for six months, you owe nothing for those six months.