Best Revenue-Based Financing for Restaurants

The best revenue-based financing for a restaurant is the one that moves with your sales, does not overcharge you in slow weeks and does not eat the cash you need to pay suppliers on Monday. For fast capital with broad criteria, Merchant Fund Express, our recommended funder, reviews your sales and deposits, considers credit from FICO 500 and offers Spanish-speaking support. If you already take payments with Square, its loans are repaid with a fixed percentage of daily card sales; and if you can wait, an SBA microloan or a CDFI usually costs less.

Revenue-based financing is approved mainly on what your restaurant sells, not just your credit. It fits taquerias, pupuserias, bakeries, coffee shops and family restaurants that sell every day but have strong months and slow months. Below we compare five options using official-site data checked October 20, 2026. Leer en español.

The 5 best revenue-based financing options for restaurants

1. Merchant Fund Express (recommended funder). A restaurant deposits sales almost every day, and that is exactly what gets reviewed here: approval looks at your sales and deposits, not just your credit. It considers profiles from FICO 500, works with amounts from $5,000 to $5,000,000 and often decides in 2 to 4 hours. Collateral is not required in most cases. It accepts applicants with an ITIN (no SSN needed), offers Spanish-speaking support, and applying is free with no impact to your credit. Best if you need capital for a remodel, a new oven, seasonal inventory or a second location and do not want to wait weeks.
2. Square Loans. Only for businesses that process sales through Square. According to its site, offers range from $100 to $500,000 based on business performance, are repaid automatically with a fixed percentage of daily card sales and carry a single fixed fee, with no interest. There are minimum payments listed in the offer. Applying does not affect your credit, no collateral is required up to $100,000, and a personal guarantee is required above $250,000. Best if you take nearly everything by card through Square.
3. An advance from the POS system you already use. Several restaurant point-of-sale systems offer financing to their own customers and collect it from your card sales. It is convenient because the offer shows up in your dashboard. We do not name brands or details we could not confirm on their official sites; check the amount, fee, holdback percentage and any minimum payment in your own dashboard.
4. National Funding (working capital). Up to $500,000 with daily or weekly payments over 4 to 24 months, according to its site. The payment is fixed, not a percentage of sales, so it works if your sales are steady and you prefer knowing exactly what comes out each week. It says most of its customers have a FICO score of 600 or higher. In some states it only offers sales-based options.
5. SBA microloan or CDFI. SBA microloans go up to $50,000 (the average is around $13,000), with a maximum term of seven years and rates that generally run 8% to 13%. CDFIs are institutions certified by the U.S. Treasury to serve communities with limited access to credit, and many have bilingual staff. Best if you want the lowest cost and can wait.

How we rank. No ratings, scores or invented statistics. We compare each option on criteria you can check: speed, minimum time in business, minimum credit, ITIN or no-SSN acceptance, documents, amounts and collateral. For restaurants we gave extra weight to how the payment is collected (percentage or fixed amount) and whether there is a minimum payment, because your sales change by day of the week and by season. Read the full method in how we rank business funding options.

Comparison table

"Ask" means we do not assume it. Check the contract or ask in writing.

Percentage payment or fixed payment: what matters most for a restaurant

All revenue-based financing is repaid in one of two ways, and for a restaurant the difference is huge:

• A percentage of your sales. A fixed share of what you sell by card is held back each day. If you sell little on a rainy Tuesday, you pay little; if you pack the dining room on Mother's Day, you pay more. It fits restaurants with very uneven, seasonal or tourist-driven sales. Always ask about the minimum payment: some programs require you to pay down a set amount every so many days even if sales are slow.
• A fixed daily or weekly amount. The same amount comes out every business day or every week. It fits restaurants with even sales, like an office-park coffee shop or a family restaurant with regulars. The risk is the week you close for a repair or for road work on your street.

One restaurant-specific detail: the percentage applies to card sales that run through the system. Cash sales and delivery-app sales do not always count toward the holdback, but they do help the funder see your whole business if you deposit them. To understand the product in depth, read the best revenue-based financing options.

What to use it for in your restaurant

• Remodeling the dining room or passing an inspection: a quick lump sum with a percentage payment lets you reopen without draining the register. If the project is big and you can wait, compare a term loan.
• Replacing kitchen equipment (hood, walk-in cooler, fryers, flat-top): for one big purchase, equipment financing usually fits better; see equipment financing for restaurants. For several things at once, revenue-based capital is more flexible.
• Inventory and payroll for the busy season (December, Lent for seafood spots, summer in beach towns): revenue-based capital repaid from that same season's sales.
• Opening a second location or a food truck: revenue-based capital can cover startup costs, but for larger amounts compare a term loan or an SBA loan if you qualify.
• Getting through a very slow month: before you borrow, check whether the problem is temporary. If sales are down for a reason that will not change, more debt will not fix it.

Which to pick by type of restaurant

• Taqueria, pupuseria or neighborhood family restaurant: lots of cash sales. Deposit all of it into the business account for several months before applying; what does not reach the bank does not count.
• A restaurant that takes nearly everything by card: your POS system's advance or Square Loans (if you use Square) is convenient. Compare its fee against at least one other offer before accepting.
• Heavy delivery volume: the apps pay you days later and take a commission. Keep their payout reports handy to show your real sales.
• Seasonal or tourist-area restaurant: a percentage payment, so the holdback drops on its own in the off-season. Apply when your bank statements show the busy season.
• An established restaurant that wants the lowest cost: a CDFI, bank or SBA loan if you qualify; save the fast option for opportunities and emergencies.

If your restaurant has owners with an ITIN or a green card, remember that since March 1, 2026 (SBA Procedural Notice 5000-876626), SBA 7(a) and 504 loans require 100% of owners to be U.S. citizens or nationals. This is not immigration advice; talk to an immigration attorney about your situation if you have questions.

Documents, questions and common mistakes

Before you apply, gather: 3 to 6 months of business bank statements; sales reports from your POS; delivery-app payout reports; your current health permit and licenses; your lease; ID and an SSN or ITIN depending on the funder; and your EIN.

Questions to always ask:

1. What percentage of my sales is held back, or how much is the fixed payment, and how often?
2. Is there a minimum payment? What happens if I have a very slow week?
3. Is the fee fixed, or does it grow over time? Is there a discount for paying early?
4. Is there a personal guarantee? Is collateral required?
5. Can I switch payment processors while I am repaying?

Common mistakes: stacking two or three financings with daily holdbacks; accepting the maximum you are offered instead of what you need; signing without understanding the contract; and trusting promises of sure approval. If a payment is already squeezing you, work on lowering the payment with your current funder instead of taking on another one; our guide on how to lower an expensive MCA payment explains how.

For every option in your industry, see the best restaurant business loans. When your bank statements are ready, you can apply with Merchant Fund Express; it is free and does not affect your credit.