What do funders weigh most?
Monthly card and cash deposits, consistency, negative balance days and existing payments.
Bars with steady weekend deposits show reliable revenue. Cash-heavy businesses should deposit cash regularly.
Inventory purchases with a clear sales plan are easier to evaluate.
How do I strengthen my application?
Deposit all revenue to one account, avoid negative days, request an amount tied to a specific inventory need, and explain past credit issues.
Include supplier quotes or orders to show the purpose.
Inventory requests are easier to evaluate when they connect to a sales event. A stock-up before football season, a patio opening or a holiday calendar gives the funder a clear picture of when the inventory turns into deposits. Bring last year’s numbers for the same period if you have them; POS reports showing depletion and sales by week tell the story better than a general request.
After funding, keep deposits steady and pay on schedule. Hospitality owners often carry credit marks from a tough opening year or a slow season. A clean repayment record on a modest, purpose-driven request is usually the fastest way to earn larger amounts and better pricing on the next round, especially as personal credit recovers.
What limits options?
Open bankruptcies, unresolved tax liens, recent defaults and liquor license issues.
Make sure your liquor license and permits are current; problems there affect any lender.
| Tip | Why | Effect |
|---|---|---|
| Deposit cash regularly | Revenue shows | Stronger file |
| Supplier quote | Clear purpose | Faster review |
| Modest request | Affordable payment | Better odds |
| Current licenses | Compliance | Fewer issues |
Worked example: a neighborhood pub with a 520 score
A neighborhood pub owner with a 520 score and $52,000 in steady monthly deposits wants $7,000 to stock up before football season. Using an illustrative factor rate of 1.29, $7,000 would mean $9,030 repaid over roughly 3 months: 63 daily payments of about $143.
That works out to about $3,010 a month, or 5.8% of the $52,000 this business deposits monthly, and the total cost of the money is $2,030. A modest request keeps the payment manageable and builds a record for better terms.
For comparison, repaying the same $9,030 over 2 months would lift the monthly outlay to about $4,515, or 8.7% of deposits, so ask for both terms in writing; the shorter one frequently prices lower even though each payment is larger.
| Average monthly deposits | $52,000 |
|---|---|
| Amount funded | $7,000 |
| Factor rate (illustrative) | 1.29 |
| Total repaid | $9,030 |
| Cost of the funding | $2,030 |
| Term | about 3 months |
| Daily payment (63 payments) | $143 |
| Payments as a share of deposits | 5.8% |
Who this fits
Usually a fit
- Hospitality owners with lower credit and steady deposits
- Bars with a specific inventory need
- Owners rebuilding credit
When it may not be the right move
- Businesses with declining deposits
- Owners in active bankruptcy
- Businesses without deposit history
What you’ll typically need
- Recent business bank statements
- Supplier quote
- Driver license
- Business details
Frequently asked questions
What credit score do I need to fund a pre-season stock-up?
For a pre-season stock-up, owners with scores from 500 can be considered because recent deposits carry the most weight, and stronger credit usually earns a lower cost and a larger offer.
Do cash sales count?
Deposited revenue shows on statements.
Will terms improve later?
On-time payment often improves renewals.
Is collateral required?
Revenue-based working capital generally does not require specific collateral.
Credit not perfect?
Apply; deposits matter most.
Updated October 6, 2026