You’re not short on sales. You’re short on net-45.
Prepline Capital factors hospitality receivables with facilities from $10,000 to $5,000,000, advancing up to 90% of an approved invoice within 24 hours. There is no minimum credit score, because the credit decision is about the customer who owes you — a corporation, a hotel group, a school district, a hospital — not about you. A facility opens in 3 to 5 business days.
What are the criteria?
Invoice factoring — criteria
- Facility size
- $10,000 – $5,000,000
- Advance rate
- Up to 90% of the approved invoice face value
- Speed
- 3 – 5 business days to open a facility; 24 hours per invoice once open
- Minimum credit score
- None — the obligor’s credit is what’s underwritten
- Minimum time in business
- 3 months
- Minimum receivables
- $20,000 in open, invoiced B2B receivables
- Invoice age accepted
- Current through 90 days
- Recourse
- Recourse and non-recourse facilities both available
- Documents
- Application, A/R aging report, sample invoices, customer list, 3 months of business bank statements
- Not eligible
- Consumer receivables, cash and card dine-in sales, third-party delivery payouts, unbilled work
- Underwritten
- In-house by Prepline Capital
Who is invoice factoring actually for?
Factoring is a B2B product, so it does not apply to a dine-in restaurant collecting at the table. It applies to the half of hospitality that invoices.
- Off-premise caterers billing corporations, law firms and wedding planners on net-30 or net-45.
- Contract and institutional dining — schools, hospitals, senior living, corporate cafeterias.
- Hotel and venue group business — room blocks, conference F&B, banquet master accounts.
- Commissary and ghost kitchens producing for other restaurants or retail accounts.
- Specialty food producers and bakeries wholesaling to grocery, distributors or other restaurants.
- Event and festival operators billing a promoter or a municipality after the event.
If you’re a dine-in restaurant and you got here looking for cash flow, the product you want is working capital or a line of credit. Card and cash dine-in sales cannot be factored.
How does invoice factoring work, step by step?
- Deliver the job and invoice your customer. The event happens, the contract month closes, the wholesale order ships. You bill as you always have, on your terms.
- Upload the invoice. Once the facility is open, you submit invoices as you raise them. There is no re-application per invoice.
- Up to 90% is advanced within 24 hours. The advance lands in your operating account against the approved face value of the invoice.
- Your customer pays, and you get the reserve less the fee. The remaining balance is released when the obligor settles.
A facility opens in 3 to 5 business days. After that, each invoice funds in 24 hours. Many operators run a factoring facility alongside working capital or an equipment note — they are complementary, not competing.
What a restaurant needs to qualify.
Every number below is a real criterion. If you clear these, apply. If you don’t, call us and we’ll tell you what would change it.
| Minimum monthly revenue | $15,000 in business bank deposits |
|---|---|
| Minimum time in business | 6 months |
| Minimum credit score | None for working capital, equipment financing, or factoring. 600+ for a line of credit. 650+ for a term loan. 680+ for SBA. |
| Funding range | $10,000 to $2,000,000 for working capital and equipment. Up to $5,000,000 for term loans, SBA, and factoring facilities. |
| Time to a real offer | About 4 business hours on a complete file. |
| Time to funding | 24 hours. Same day if a clean file is signed before 11:00 AM ET. |
| Documents required | Application plus your 3 most recent months of business bank statements. 4 months if your business is seasonal. |
| Contract length | 2 pages. |
| Repayment | Fixed daily or weekly ACH from your operating account. No POS split funding. No holdback percentage. No lockbox. |
| Prepayment discount | Up to 30% off the remaining balance when a working capital advance is paid off within the first 30, 60, or 90 days. |
| Cash sales | Counted. We underwrite bank deposits, not card volume alone. |
| POS requirement | None. Toast, Square, Clover, Aloha, Micros, Lightspeed, SpotOn, or a cash drawer — it makes no difference to underwriting. |
| Hospitality types approved | Full-service and quick-service restaurants, pizzerias, bars, taverns, nightclubs, breweries and taprooms, coffee shops, bakeries, caterers, event and banquet venues, food trucks and mobile vendors, ghost kitchens, hotels, motels, B&Bs, hookah lounges, and franchise restaurant groups. |
| Not required | Collateral for working capital. A business plan. Tax returns under $500,000. A specific POS. A minimum number of locations. A liquor license — but we fund venues that hold one. |
| Open to | U.S. businesses with a U.S. business bank account. All 50 states. |
Four minutes. Three bank statements. No credit impact to apply.
Factoring questions, answered.
Does my customer know I am factoring?
On a notification facility, yes — they remit to a lockbox in your name. Non-notification facilities exist for larger accounts; ask when you apply and we will tell you which structure your receivables support.
What if my customer doesn’t pay?
On a recourse facility, the invoice comes back to you and you repay the advance or substitute another invoice. On a non-recourse facility, Prepline Capital carries the credit risk of the obligor’s insolvency, which is priced accordingly. Both structures are available.
Can a restaurant factor its credit card sales?
No. Card and cash dine-in sales are not receivables and cannot be factored. Monetising future card and cash volume is a working capital advance, which is a different product with different criteria.
Is there a minimum volume to open a facility?
$20,000 in open, invoiced B2B receivables and 3 months in business. Facilities run from $10,000 up to $5,000,000, so a single caterer with two corporate accounts can open one.
How is factoring priced?
As a discount off the invoice face value, held back in the reserve and released when your customer pays. Pricing depends on the obligor’s credit, the invoice ageing, and whether the facility is recourse or non-recourse. Your facility agreement states the full schedule before you sign — see disclosures.
Your invoices are good. The timing isn’t.
Facilities $10,000 to $5,000,000, up to 90% advanced within 24 hours of invoice approval, no minimum credit score. A facility opens in 3 to 5 business days.