Six ways to fund a restaurant. Here’s which one fits.
Prepline Capital offers six funding products to restaurants, bars and hotels: working capital ($10K–$2M, 24 hours, no minimum FICO), a line of credit ($25K–$500K, 600+), equipment financing ($10K–$2M, 24–72 months), invoice factoring ($10K–$5M), term loans ($50K–$5M, 650+), and SBA 7(a) ($50K–$5M, 680+). The fastest money costs the most. The cheapest money takes the longest. Below is the whole trade-off in one table, with no form in the way.
What does each restaurant funding product cost in time and credit?
| Product | Amount | Term | Speed | Min FICO | Min time in business | Min monthly deposits | Who underwrites |
|---|---|---|---|---|---|---|---|
| Working capital advance | $10K – $2M | 3–18 months | 24 hours | None | 6 months | $15,000 | Prepline, in-house |
| Line of credit | $25K – $500K | Revolving, 6–24 month draws | 1–3 business days | 600 | 12 months | $25,000 | Prepline, in-house |
| Equipment financing | $10K – $2M | 24–72 months | 1–3 business days | 600 | 6 months | $15,000 | Prepline in-house; equipment partners for new builds |
| Invoice factoring | $10K – $5M facility | Per invoice, 30–90 days | 3–5 days to open, 24 hours per invoice after | None | 3 months | $20,000 in receivables | Prepline, in-house |
| Term loan | $50K – $5M | 6–60 months | 3–7 business days | 650 | 24 months | $40,000 | Prepline in-house to $500K; bank partners above |
| SBA 7(a) / SBA Express | $50K – $5M | Up to 10 years working capital, 25 years real estate | SBA Express 10–21 days; 7(a) 30–45 days | 680 | 24 months | — | SBA-preferred bank partners, packaged by Prepline |
Prepline Capital underwrites and funds working capital, lines of credit, equipment financing and factoring in-house. SBA 7(a), SBA Express and term loans above $500,000 are packaged by Prepline and placed with bank and SBA-preferred lending partners. See disclosures.
Working capital
In‑houseNo minimum FICO, 6 months in business, $15,000/month in deposits. 3–18 months, fixed daily or weekly ACH.
Working capital →Line of credit
In‑house600+ FICO, 12 months in business, $25,000/month. Pay only on what you draw. No cost on an unused line.
Line of credit →Equipment financing
In‑house600+ FICO, 6 months in business. 24–72 months, up to 100% of invoice including freight and install.
Equipment financing →Invoice factoring
In‑houseNo minimum FICO — your customer’s credit is underwritten. Up to 90% advanced within 24 hours of invoice approval.
Invoice factoring →Term loan
Bank partners650+ FICO, 24 months in business, $40,000/month. 6–60 months, fully amortizing. In-house to $500,000.
Term loans →SBA 7(a) & Express
SBA partners680+ FICO, 24 months in business, 10% down. Up to 10 years working capital, 25 years real estate.
SBA loans →Which product should I use for what I’m doing?
Find the row that matches the job in front of you. The amounts are what operators actually ask for, not a range we made up to look generous.
| What you’re doing | Typical amount | Best product | Why |
|---|---|---|---|
| Payroll through January and February | $25K – $150K | Working capital | Speed matters more than cost; you’ll repay it out of spring volume. |
| The hood or the walk-in died mid-service | $15K – $75K | Working capital, then refinance into equipment | Get open today, re-term the asset next week. |
| Buying a combi oven, line, or second truck | $20K – $300K | Equipment financing | 24–72 months against the asset; preserves your cash. |
| Opening a second location | $150K – $1.5M | Term loan, or SBA 7(a) if you have 90 days | SBA is the cheapest capital a restaurant can get if you can wait. |
| Full dining room remodel | $100K – $750K | Term loan | Match the term to the useful life of the build-out. |
| Buying out a partner | $100K – $2M | Term loan or SBA 7(a) | SBA explicitly allows partner buyouts. |
| Catering or hotel group invoices on net-45 | $20K – $500K | Invoice factoring | You’re not short on sales, you’re short on timing. |
| Q4 inventory and liquor build | $25K – $250K | Line of credit | Draw, sell through, repay, draw again next year. |
| Three advances you can’t carry | $150K – $1M | Term loan consolidation | One payment, longer term. Call before taking a fourth position. |
| Franchise fee + build-out for a new unit | $250K – $5M | SBA 7(a) | Most major restaurant franchises are on the SBA Franchise Directory. |
How fast does each one actually move?
- 24 hoursWorking capital advance
- 1–3 daysLine of credit, equipment financing
- 3–5 daysFactoring facility to open, then 24h per invoice
- 3–7 daysTerm loan decision
- 10–21 daysSBA Express
- 30–45 daysStandard SBA 7(a)
Timelines describe typical outcomes on complete files during business days, Monday to Friday, 9:00 AM to 7:00 PM ET. Holidays, incomplete files and third-party response times extend any timeline.
Four minutes to apply. Twenty-four hours to fund.
Send us four minutes and three statements
Name, EIN, monthly revenue, what the money is for, and your three most recent months of business bank statements. Four if you’re seasonal. No tax returns under $500,000.
A human underwriter reads your file
Every file is read by an underwriter, not a score. We look at average daily balance, deposit count, NSF pattern and your slowest month — not just the top-line number. Offer in about four business hours during the week.
Sign two pages and get funded
You see the amount, the payback, the payment and the schedule before you sign anything. A clean file signed before 11:00 AM ET generally funds the same day; otherwise next business day.
One application covers all six products. Not sure which fits? Call an underwriter or read the guides — none of them are gated.
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.
Picking between the six.
What’s the cheapest way to fund a restaurant?
An SBA 7(a) loan is the lowest cost of capital available to a restaurant — up to 10 years on working capital and 25 years on owner-occupied real estate, with 10% down. It requires 680+ credit, 24 months in business, filed tax returns, and 30 to 45 days. An in-house term loan is the next cheapest at 650+ credit and 3 to 7 business days.
What’s the fastest way to fund a restaurant?
A working capital advance. Prepline Capital gives an offer in about four business hours on a complete file and funds in 24 hours, with no minimum credit score, $15,000 a month in deposits, and 6 months in business. A clean file signed before 11:00 AM ET generally funds the same day.
Can I have more than one product at a time?
Yes for complementary products. Equipment financing and a working capital advance commonly run alongside each other, and a line of credit can sit next to an equipment lease. A second working capital position does not — if you already have an advance out, we will look at a consolidation or a re-term rather than stacking on top of you.
Does applying hurt my credit?
No. Submitting the application does not affect your credit. Prepline Capital reviews your business bank statements first. On a credit-qualified product — a line of credit, a term loan, or SBA — a credit pull happens only when you move forward, and we tell you before it does.
Which of these does Prepline fund itself?
Prepline Capital underwrites and funds working capital advances, lines of credit, equipment financing, and factoring facilities in-house from its own capital. SBA 7(a), SBA Express, and term loans above $500,000 are packaged by Prepline and placed with bank and SBA-preferred lending partners.
One application covers all six.
$10,000 to $2,000,000. No minimum FICO for working capital. Four minutes to apply, and checking your options does not affect your credit.