Business funding for grocery stores
Refrigeration is the backbone of a grocery store, and when a compressor or a walk-in fails, spoiled inventory is an immediate loss on top of the repair bill. Produce and perishables also mean buying heavy before the store has sold anything, which is where most grocery funding gets used.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Replacing a failed compressor, walk-in or display cooler
- Buying inventory ahead of a busy season
- Renovating aisles or checkout areas
- Covering payroll during a slower stretch
What usually fits
Products that usually fit
- Equipment financing for coolers, freezers and refrigerated display cases.
- Merchant cash advance for an urgent repair, repaid from daily card sales.
- Working capital for seasonal inventory buys.
- Line of credit for ongoing inventory swings.
How a merchant cash advance works for you, and when it is too expensive
A grocery store's MCA holdback comes out as a fixed percentage of daily card sales, which tend to be steady but can soften in a slow week or after a big cash-and-cheque grocery run. At an illustrative factor of 1.15–1.45, a $40,000 advance costs $46,000–$58,000 in total regardless of how quickly it is repaid.
Because refrigeration failures are urgent, an MCA is sometimes the fastest way to cover one, but it is worth comparing the total dollar cost against equipment financing on the cooler itself, since the equipment usually qualifies as collateral for a cheaper loan.
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 grocery store finances $55,000 to replace a failed walk-in cooler and compressor over 5 years at an illustrative 6–20% a year. Payments come to about $1,063–$1,457 per month, or $63,798–$87,430 in total.
The same $55,000 as a merchant cash advance at an illustrative factor of 1.20–1.40 means paying back $66,000–$77,000 from daily card sales, usually within 8 to 12 months.
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 cash deposits over several months
- Perishable inventory losses from any recent refrigeration failures
- Age and service history of coolers and freezers
- Existing equipment payments and daily debits
- Owner credit
Honestly
Who this is not for
- A store that has not opened yet: most lenders want deposit history
- Borrowing to cover a location that consistently loses money
- Financing equipment priced beyond what current sales 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
Grocery stores funding questions
Can I get emergency funding for a failed cooler?
Often, yes, through a merchant cash advance or, if there is time, equipment financing on the replacement unit itself. We will lay out the trade-off between speed and cost.
Do lenders care about spoilage losses?
They look mainly at deposits, but a documented spoilage loss can help explain a dip in a given month.
Can I finance a full store renovation?
Yes, usually as a term loan rather than equipment financing, since a renovation is not resellable collateral.
Is SNAP or EBT revenue counted?
Lenders generally look at total deposits into the business account regardless of payment type, but ask us about your specific mix.
Guides
Guides for grocery stores
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Where we work: all US states · all Canadian provinces
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