Why does deposit history matter most?
Working capital is repaid from future sales. Steady card and cash deposits show the kitchen can handle payments.
A restaurant with consistent daily deposits looks strong even if the owner’s credit took hits in the past.
Equipment financing, by contrast, may lean more heavily on credit.
How do I strengthen my application?
Deposit all revenue to one business account, avoid negative days, request a repair-sized amount and include the repair quote.
A clear repair need with a quote makes the purpose obvious.
Include the repair quote with your application even when it is not required. It shows the amount is tied to a real need, which makes the request easier to evaluate. If the repair also prevents lost sales, a sentence explaining that helps.
Repay on schedule and keep deposits steady afterward. Kitchens that use a first funding for a clear repair and repay it on time usually see better offers on the next request, especially as credit improves. A habit of setting aside a small repair reserve each week also reduces how often you need outside funding at all.
What hurts more than a low score?
Open bankruptcies, unresolved tax liens and recent defaults.
Explain past issues briefly and show what has changed.
| Tip | Why | Effect |
|---|---|---|
| One business account | Clear deposits | Easier review |
| Repair quote | Clear purpose | Faster decision |
| Modest request | Affordable payment | Better odds |
| Explain history | Context | Understanding |
Worked example: a diner with a 510 score
A diner owner with a 510 score and $58,000 in steady monthly deposits needs $6,000 to replace a griddle and repair a reach-in. Using an illustrative factor rate of 1.29, $6,000 would mean $7,740 repaid over roughly 3 months: 63 daily payments of about $123.
That works out to about $2,580 a month, or 4.4% of the $58,000 this business deposits monthly, and the total cost of the money is $1,740. A modest request keeps the daily payment small and builds a record for better terms.
For comparison, repaying the same $7,740 over 2 months would lift the monthly outlay to about $3,870, or 6.7% of deposits, and because shorter terms often carry a lower factor rate in practice, it is worth asking to see both before choosing.
| Average monthly deposits | $58,000 |
|---|---|
| Amount funded | $6,000 |
| Factor rate (illustrative) | 1.29 |
| Total repaid | $7,740 |
| Cost of the funding | $1,740 |
| Term | about 3 months |
| Daily payment (63 payments) | $123 |
| Payments as a share of deposits | 4.4% |
Who this fits
Usually a fit
- Kitchen owners with lower credit and steady sales
- Operators with a specific repair
- Owners rebuilding credit
When to hold off
- Kitchens with declining sales
- Owners in active bankruptcy
- New kitchens without deposits
What you’ll typically need
- Recent business bank statements
- Repair quote
- Driver license
- Business details
Frequently asked questions
What credit score do I need to fund a griddle or cooler repair?
For a griddle or cooler repair, 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.
Is equipment financing an option?
It may require stronger credit; working capital is often more flexible.
Will terms improve later?
On-time payment often leads to better 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