News

Toast introduces loan program for restaurants

November 13, 2019

Toast Inc., a restauant management platform, has introduced a loan program, Toast Capital, to provide restaurants access to flexible funding to cover working capital needs, according to a press release. 

Benefits include:

• Members of the Toast restaurant community can apply in just a few minutes and, once approved, receive funds as soon as one business day.
• Eligibility for a loan is determined by attributes such as sales history, time in business, and time as a Toast customer. Unlike other business loans, eligibility guidelines take into consideration specific industry challenges, such as seasonality.
• Loans have no compounding interest or personal guarantees. Funding is available between $5,000 and $250,000, based on eligibility.
• Loans are repaid as a fixed percentage of daily credit card sales, meaning repayment flexes with restaurant sales volume so when sales are slower, restaurants repay less than on busy days. 

"Since investing in Juvia and Sushi Garage with Toast Capital seven months ago, our revenue increased by over 15%," Tim Sandoz, director of operations at Juvia Group in Miami, Florida, said in the release. "Funding through Toast Capital allowed us to expand our dining space and increase the number of covers we can handle each night. Historically, reservations would book up four days in advance, which meant a lot of disappointed potential diners. Since the expansion with Toast Capital, we now have additional seating which allows us to accommodate more guests, grow our revenue, and increase server tips."

Nearly 52% of restaurant professionals rank high food and operating costs as a top challenge in running a restaurant, according to the Toast Restaurant Success in 2019 Industry Report. 

Image courtesy of Toast Inc.