The best option depends on what the money is for. Merchant Fund Express is best for seasonal inventory or an urgent repair, based on your sales; Square Loans fits stores that already process with Square; Credibly works when card sales swing up and down; Accion Opportunity Fund offers fixed monthly payments if you have 2+ years; National Funding covers refrigeration and equipment; and an SBA 7(a) or 504 is the way to buy your building if every owner is a U.S. citizen.
A grocery store lives on thin margins, lots of cash and sharp seasons: Christmas, Holy Week, Mother's Day, back-to-school. Below we compare each option using details from its official website and tell you which one fits each need in your store, and which one to avoid.
Key takeaways
- For seasonal inventory, sales-based financing is fast; use it for amounts your store will turn over in weeks, not months.
- Square Loans offers $100 to $500,000 by invitation to businesses that process with Square, repaid as a fixed percentage of daily Square sales.
- Credibly asks for 6 months in business, $15,000 in monthly revenue and credit of 500 or higher, per its website.
- Accion Opportunity Fund lends up to $250,000 on terms up to 36 months, but asks for 2 years and $300,000 in annual sales.
- For refrigeration and equipment, equipment financing usually costs less than working capital, because the equipment backs the payment.
- If you take in a lot of cash, deposit it: what does not show in your bank account does not count for any funder.
The best options for your store, in order
- Merchant Fund Express (recommended funder). It reviews your sales and deposits, not just your credit, and decisions often come in 2 to 4 hours. Amounts run $5,000 to $5,000,000, credit starts at FICO 500 and, in most cases, collateral is not required. It accepts applicants with an ITIN (no SSN needed) and offers Spanish-speaking support. This is the option for buying inventory before December, replacing a freezer that died on a Saturday or grabbing a volume discount from your distributor.
- Square Loans. If your store takes payments with Square, you can receive offers from $100 to $500,000 based on your volume, frequency and time processing with them. It is invitation-only: if you do not see an offer in your dashboard, you do not qualify yet. Repayment is automatic, a fixed percentage of your daily Square sales, and funds arrive the next business day (per its website, checked October 2026).
- Credibly. Offers financing up to $600,000, including a merchant cash advance with payments based on your card sales. It asks for 6+ months in business, $15,000+ in monthly revenue deposited into a business account, and credit of 500 or higher (checked October 2026).
- Accion Opportunity Fund (term loan). This CDFI lends up to $250,000 on terms up to 36 months with no prepayment penalty. It asks for at least 2 years in business, $300,000+ in annual sales, and that all shareholders be U.S. citizens or permanent residents. It offers coaching in English and Spanish (checked October 2026).
- National Funding (equipment financing). Finances new or used equipment up to $150,000, up to 100% of the cost with no down payment required, on monthly payments over 2 to 5 years (checked October 2026). A fit for walk-in coolers, display cases, slicers or a bakery oven.
- SBA 7(a) or 504. To buy the building, remodel or open another store, an SBA loan usually costs less than any online option. It takes weeks and, since March 1, 2026, requires that 100% of the owners be U.S. citizens or U.S. nationals.
How we chose
We do not give ratings or scores. We compare every option on the same criteria: speed, minimum time in business, minimum credit, acceptance of an ITIN or owners without an SSN, documents, amounts and collateral. Company details come from official websites, checked in October 2026; if we could not confirm something, we left it out. Read the full method in how we rank business funding options.
If you want to understand how each loan type works for a store first, read our guide to business loans for grocery stores.
Comparison table
| Option | Minimum time | Credit | Amounts | How you repay |
|---|---|---|---|---|
| Merchant Fund Express | Reviewed based on your sales | FICO 500+ | $5,000 to $5,000,000 | Depends on the offer |
| Square Loans | By invitation, based on Square history | Not published as a requirement | $100 to $500,000 | Fixed percentage of daily Square sales |
| Credibly | 6 months | 500+ | Up to $600,000 | Daily or weekly, or tied to card sales |
| Accion Opportunity Fund | 2 years | Looks beyond the score | Up to $250,000 | Monthly, up to 36 months |
| National Funding (equipment) | Not published | Most approvals 600+ | Up to $150,000 | Monthly, 2 to 5 years |
| SBA 7(a) / 504 | Depends on the bank | Good, with history | Depends on the program | Monthly, long terms |
Which option to use for each need in your store
- Inventory for Christmas, Holy Week or Mother's Day: fast sales-based capital, sized to what you will sell that season. Put a date on it: if it has not sold in six weeks, you overbought.
- A freezer or walk-in cooler that failed: if you can wait a few days, equipment financing. If your meat is spoiling today, fast capital now, then refinance calmly later.
- Adding a meat counter, bakery or hot food: combine equipment financing for the machines with working capital for permits, staff and opening inventory. Check your city's health permits first.
- Remodeling or expanding: a bank, CDFI or SBA loan if you qualify and have time; they are the cheapest options for projects that pay back over years.
- Buying the building or opening another store: SBA 504 or 7(a), or a conventional bank loan if any owner is not a citizen.
- Running a bodega or convenience store: see our guide to convenience store and bodega funding for the smaller-format version of these choices.
Common mistakes when financing a grocery store
- Financing slow-moving merchandise. Grocery lives on turnover. If you use expensive money to fill the stockroom with products that take months to sell, the cost eats your margin. Finance what sells fast.
- Not depositing cash. Many Latino markets take in a big share of sales in cash and do not deposit all of it. To a funder, those sales do not exist. Deposit everything, even if it is the next day, for at least three to six months before you apply.
- Mixing the store account with other services. If your store also sends money transfers or cashes checks, keep those operations in separate accounts. Many funders do not work with money services businesses, and mixed accounts can complicate or stall your application.
- Taking daily payments your worst week cannot handle. Look at your slowest week last year. If the payment does not fit there, ask for less or a longer term.
- Going fast when you have time. If your store has years of history, good numbers and the need can wait a month, ask your bank, a credit union or a CDFI first. They usually cost quite a bit less than online capital. Fast money is for when time is worth more than the cost difference: a season that will not wait, equipment that failed or a distributor discount that expires Friday.
- Not negotiating with your distributor. Before financing a big order, ask your distributors for 15- or 30-day terms or an early-payment discount. Sometimes the best inventory financing is your supplier's own credit.
- Forgetting SNAP and WIC deposits. If you accept benefits, those deposits are real sales. Make sure they land in the business account and show clearly on your statements.
Documents you will be asked for
Have these ready before you apply; most options will ask for them at some point:
- Business bank statements for the last three to six months, including your cash deposits.
- Month-by-month reports from your point-of-sale system or card processor.
- Owner ID, EIN and your LLC or corporation documents.
- Your store lease and current licenses (business, health and, if it applies, alcohol or lottery).
- Recent tax returns, especially for a CDFI, bank or SBA loan.
- An equipment quote, if you are financing refrigeration or machinery.
For seasonal inventory or a repair that cannot wait, our recommended funder reviews your sales and deposits, offers Spanish-speaking support, and applying is free with no impact to your credit: you can apply with Merchant Fund Express online. Prefer Spanish? Leer en español.
Frequently asked questions
What is the best loan for buying inventory for my store?
It depends on how fast it turns. For seasonal inventory you sell in weeks, sales-based financing is fast and practical. For a big order that takes months to sell, a line of credit or a cheaper term loan, such as one from a CDFI or bank, is usually the better fit.
Can I get a loan for my grocery store if most of my sales are cash?
Yes, but you need to deposit that cash into the business account. Sales-based funders read your bank statements; if the cash does not show up there, it does not count. Start depositing everything at least three months before you apply.
Can Square lend to my store if I process with Square?
It may offer you a loan if you meet its criteria. Square Loans is invitation-only: it reviews your processing history and notifies you in your dashboard and by email. Offers range from $100 to $500,000 and are repaid as a fixed percentage of your daily Square sales.
What is the best way to finance new refrigerators for my store?
If you can wait a few days, equipment financing usually costs less, because the equipment backs the payment. National Funding, for example, finances equipment up to $150,000 on 2- to 5-year terms. If the breakdown is urgent, fast working capital gets you out of the jam.
Can I use an SBA loan to buy my store's building?
Yes, SBA 504 and 7(a) loans are used to buy or improve real estate. They are usually the cheapest options, but they take weeks and, since March 1, 2026, require that every owner be a U.S. citizen or U.S. national.
Can I get financing if my store also does money transfers?
Many funders do not work with money services businesses, such as remittances or check cashing. If your store offers those services, keep them in separate accounts and make clear that your main business is grocery sales.