Business funding for cafés and bakeries
An espresso machine or a deck oven is the most expensive thing in the shop, and when it breaks the whole menu stops. Rent and payroll come due every month regardless of foot traffic, so café and bakery funding usually splits between financing the equipment and smoothing the slower months.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Replacing an espresso machine, deck oven or mixer
- Covering rent and payroll through a slow stretch
- Opening a second location or a kiosk
- Buying a delivery or catering van
What usually fits
Products that usually fit
- Equipment financing for ovens, mixers and espresso machines that hold resale value.
- Merchant cash advance for an urgent repair, repaid from daily card sales.
- Line of credit for rent and payroll between good and slow weeks.
- Term loan for a second location.
How a merchant cash advance works for you, and when it is too expensive
A café's MCA holdback comes out of the morning rush and the afternoon lull alike, as a fixed percentage of whatever the card terminal rings up that day. At an illustrative factor of 1.15–1.45, a $15,000 advance costs $17,250–$21,750 in total, whether the shop repays it in four months or ten.
It costs the most when a slow month stretches on, since the daily debit does not adjust down. Compare the total dollar cost against a line of credit or equipment financing sized to the same oven or cooler before choosing an MCA.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Separately, our sister company CELER Merchants offers card processing.
Illustrative example
A worked example
A bakery finances $35,000 for a new deck oven and proofer over 4 years at an illustrative 8–18% a year. Payments come to about $854–$1,028 per month, or $41,014–$49,350 in total.
The same $35,000 as a merchant cash advance at an illustrative factor of 1.20–1.40 means repaying $42,000–$49,000 from daily card sales, typically inside a year.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Monthly card and bank deposits, including catering or wholesale income
- Lease length and rent as a share of deposits
- Existing equipment payments and daily debits
- Time at the current location
- Owner credit
Honestly
Who this is not for
- A café that has not opened yet: most lenders need operating history
- Borrowing to cover a location that loses money every month
- Financing equipment priced above what the shop's revenue can service
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
Cafés & bakeries funding questions
Can I finance a used espresso machine?
Some equipment lenders finance used machines, often with a vendor invoice; others only finance new. Tell us the make, model and seller.
Does wholesale or catering income help my application?
Yes, if it shows up in the same business bank account, lenders can count it alongside retail card sales.
Is a merchant cash advance the only fast option?
No. A line of credit can be faster and cheaper if the shop already has a track record, though it usually takes a little longer to set up the first time.
Can a bakery finance a delivery van?
Yes, through equipment or vehicle financing, usually with the van itself as collateral.
Guides
Guides for cafés & bakeries
Related
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Restaurants · Bars & pubs · Food trucks · Catering · Hotels & motels · Event venues
Where we work: all US states · all Canadian provinces
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