Non-dilutive capital from $50K to $5M for restaurants, bars, retail, and grocery — at better rates than Toast Capital and Square Loans. Underwritten on your revenue and margins, not your credit score.
Link your POS, bank, and accounting — Toast, Square, Clover, QuickBooks. We underwrite revenue and margins, not credit scores or collateral.
We size capital against your monthly revenue and margins and return terms with the rate disclosed up front — no site visits.
Accept and capital lands, typically within 48 hours. Repay monthly, not daily — and no full personal guarantee.
Capital for second and third locations — lease deposits, renovations, and equipment ($75K–$200K typical per location).
Stocking shelves, buying wholesale product, and seasonal inventory pre-builds for retail stores and grocery.
Commercial kitchen equipment, POS systems, furniture, patio buildouts, and pool installations.
Replace POS-embedded financing. Toast Capital charges 14% daily take rates (40%+ effective APR); Founderpath offers 8–12% monthly structures.
Digital ads, local marketing, events, and grand-opening promotions — Parker and Scott built their presence six months before launch.
Bridge gaps between vendor payments and customer revenue. Restaurants run thin margins on 30–60 day vendor cycles.
Hire seasonal staff, build event inventory, and expand outdoor dining. Cabana Club staffs 20–40 people by season.
New menu launches, concept pivots, and added revenue streams. Tiny Grocer added a French restaurant now doing $3.5M/year.
Combine multiple high-interest loans, credit cards, and merchant cash advances into a single lower-rate facility.
A side-by-side comparison based on publicly available data, independent reviews, and real founder case studies.
| Dimension | Founderpath | Toast Capital |
|---|---|---|
| Product structure | Promissory note, revenue-based, MCA | MCA embedded in POS |
| Effective APR | 10–20% | 30–50%+ (14% daily take rate) |
| Term length | 12–36 months | Until paid (typically 6–12 months) |
| Repayment | Monthly flexible payments | Daily auto-deduct from card sales |
| Revenue share rate | 5–10% of monthly revenue | 10–16% of daily card sales |
| Interest-only period | Up to 6 months available | None |
| Typical deal size | $50K–$5M | Up to $300K |
| Platform required | None — any POS or channel | Must use Toast POS |
| Custom terms | Negotiable with investment team | Algorithm-generated, take-it-or-leave-it |
A side-by-side comparison based on publicly available data and independent reviews.
| Dimension | Founderpath | Square Loans |
|---|---|---|
| Product structure | Promissory note, revenue-based | Merchant cash advance |
| Effective APR | 10–20% | 30–50% |
| Term length | 12–36 months | Until repaid (typically 6–18 months) |
| Repayment | Monthly flexible payments | % of daily card sales |
| Max funding | $50K–$5M | Up to $250K |
| Platform required | None — any POS or channel | Square POS |
| Custom terms | Negotiable with investment team | Algorithm-generated, take-it-or-leave-it |
Brick-and-mortar financing is non-dilutive capital for physical businesses — restaurants, bars, grocery, retail, salons, and fitness studios — underwritten on your actual revenue and margins rather than credit scores, collateral, and years of history. If your business generates consistent sales and healthy gross margins, you can qualify.
Each new location compounds brand awareness, supplier leverage, and operational efficiency. Tiny Grocer runs $3.5M at Hyde Park and $1.5M at South Congress for $5M total; Parker and Scott are expanding from one store to three to five.
Tiny Grocer runs 41–42% blended margins, Parker and Scott 50% on non-food. These profiles make brick-and-mortar strong candidates for revenue-based financing, where repayment is tied to a percentage of monthly revenue rather than a fixed payment.
POS lenders take 10–16% of every transaction via daily deductions that do not flex down fast enough — a $40K January carries the same fixed costs as an $80K peak. The result is a cash crunch exactly when you can least afford it, at a 30–50% effective APR.
Cabana Club staffs 20–40 employees depending on season, and you invest in staffing, inventory, and marketing before revenue arrives. A line of credit lets you draw when you need it and repay when cash flow is strongest, rather than commit to fixed payments that ignore your cycle.
Banks require two years of history, personal guarantees, collateral, and 60–90 day approvals, with covenants that penalize the revenue variability normal in physical retail. Revenue-based financing and term loans offer faster funding, flexible terms, and underwriting that understands how these businesses operate.
Real brick-and-mortar founders on the terms that let them grow.
“Founderpath gave us $500K to build out our second location and stock 4,500 SKUs from local makers. We went from one store doing $3.5M to two stores doing $5M.”
Repay as a percentage of monthly revenue rather than a fixed dollar amount — pay more when sales are strong, less when they dip. Most lenders take 5–15% of monthly revenue until the total repayment is met, which suits seasonal or variable revenue.
A lump sum with fixed payments over 12–36 months, ideal for opening locations, major renovations, or large equipment purchases where you know exactly how much capital you need and want predictable payments.
MCAs charge a factor rate (typically 1.1x–1.5x), not interest — a $100K advance at 1.3x means repaying $130K. Because daily deductions accelerate repayment, the effective APR often lands between 30–50%. Always compare the effective APR, not just the factor rate.
A revolving line lets you draw as needed and pay interest only on what you use — the most flexible option for inventory, payroll gaps, marketing pushes, or unexpected expenses. Draw and repay multiple times without reapplying.
DSCR = Net Operating Income / Annual Debt Service. A 1.0x means you break even on payments; most lenders want 1.25x or higher. Improve it by increasing revenue, reducing operating expenses, or choosing longer repayment terms that lower annual debt service.
Toast Capital is fast but expensive (30–50% effective APR) with daily deductions; bank loans are cheap (6–12%) but slow (60–90 days) and require collateral and two years of history. Revenue-based financing (10–20% effective, funded in 24–48 hours, no personal guarantee) offers the best balance of speed, cost, and flexibility.
At $40K–$50K monthly revenue with 30%+ margins, expect $50K–$500K; at $200K+ monthly with strong margins, $500K–$5M. Revenue consistency and margin stability matter most.
Capital to hire, train, and stock for peak season needs to be deployed weeks or months before peak revenue arrives. Secure a line of credit or revenue-based facility before your busy season so capital is available when you invest ahead of demand.
Finance the buildout, initial inventory, and pre-opening costs without depleting working capital at your existing location. A term loan for the buildout paired with a line of credit for ongoing working capital is often the optimal structure.
Debt preserves ownership. Taking equity — from a partner, investor, or franchise group — permanently gives up a share of your business and future profits. For businesses with strong margins and predictable revenue, debt almost always makes more economic sense than selling equity.
Toast, Square, and Shopify offer financing as a retention tool, not a core lending business, so they price aggressively with high factor rates and daily deductions. The economics work for the POS company because your processing fees far exceed their lending profit over time.
Lenders weigh revenue scale, gross margin (30% minimum, 40–50% preferred), lease terms, location performance, and time in business. $500K+ annual revenue with 40%+ margins and stable leases lands in the 10–15% range; multi-location operators with proven unit economics often receive the best terms.
No pitch deck, no scarcity, no countdowns. Connect your data and we'll show you exactly what you qualify for — every figure disclosed up front.
Brick and mortar financing is specialized funding for physical retail businesses — restaurants, bars, grocery stores, retail shops, salons, and fitness studios. Common types include revenue-based financing, term loans, merchant cash advances, and lines of credit. Most brick-and-mortar businesses qualify for $50K-$5M depending on revenue, margins, and time in business.
Toast Capital charges a 10-16% daily take rate on transactions, which translates to a 30-50% effective APR due to accelerated repayment. Founderpath offers a 5-10% monthly take rate with 10-20% effective cost — roughly half the price. Cabana Club refinanced their Toast Capital advance from a 14% factor rate down to 8% with Founderpath, saving thousands in financing costs while switching from daily to monthly payments.
Yes, refinancing POS-embedded loans is one of the most common use cases. The process is straightforward: connect your financial data (bank statements, POS reports, QuickBooks), receive a quote within 24 hours, and if the terms are better, we pay off your existing advance and replace it with a lower-cost facility. Most businesses save 30-50% on financing costs by refinancing away from Toast Capital or Square Loans.
The minimum threshold is $40K-$50K in monthly revenue ($500K annualized). Higher revenue unlocks better terms and larger facilities. Businesses doing $100K+ monthly typically qualify for the most competitive rates in the 10-12% range. Revenue consistency matters more than absolute scale — a business doing steady $50K months is a stronger candidate than one swinging between $20K and $80K.
Yes. Restaurants, bars, cafes, grocery stores, retail shops, salons, fitness studios, and any physical business with consistent revenue and healthy margins can qualify. We underwrite on revenue and margin data from your POS system, bank accounts, and accounting software — not just credit scores or collateral.
Most businesses receive funding within 24-48 hours after connecting their financial data. We integrate with QuickBooks, major banks, and POS systems like Toast, Square, and Clover to pull revenue and margin data automatically. There are no lengthy applications, no site visits, and no weeks of back-and-forth with underwriters.
No. All Founderpath financing is 100% non-dilutive. We do not take equity, board seats, warrants, or any ownership stake in your business. You retain full control and full ownership. When your business grows in value, 100% of that upside belongs to you.
Capital can be used for any business purpose: opening new locations, purchasing inventory, buying equipment, renovations and buildouts, marketing and customer acquisition, hiring and payroll, and refinancing expensive existing debt like merchant cash advances. There are no restrictions on how you deploy the funds.
We look for 30%+ gross margins as a minimum, with 40-50% being ideal. Typical margin profiles by category: restaurants 30-40%, retail shops 40-60%, grocery stores 35-45%, bars and beverage 60-75%, salons and services 50-70%. Blended margins matter most — Tiny Grocer runs 41-42% across their mix of prepared food and curated grocery items.
Yes, 10-15% is the standard range for non-bank brick-and-mortar financing. This is significantly cheaper than Toast Capital or Square Loans (30-50% effective APR), credit card financing (20-30% APR), or most merchant cash advances (40-60% effective APR). Bank loans are cheaper at 6-12%, but require 2+ years of history, collateral, personal guarantees, and 60-90 days to close.
We take a general lien on business assets (standard UCC filing), but we do not require real estate collateral, personal property, or full personal guarantees. This means your personal assets — home, savings, retirement accounts — are not at risk. The lien covers business equipment, inventory, and receivables.
Revenue-based financing has payments that flex with your monthly revenue, faster approval (24-48 hours vs 60-90 days), no personal guarantees, and underwriting based on actual business performance. Bank loans have fixed monthly payments regardless of revenue, require extensive documentation, collateral, personal guarantees, and 2+ years of operating history. For seasonal or growing brick-and-mortar businesses, the flexibility of revenue-based financing is often more valuable than the lower rate of a bank loan.
Yes, multi-location expansion is one of the most common use cases. Parker and Scott secured $150K in financing to open 2 new retail locations, bringing their total from one to three stores. The key is demonstrating strong unit economics at your first location — healthy margins, consistent revenue, and efficient operations — which gives lenders confidence in your ability to replicate that success.
No specific POS system is required. We work with Toast, Square, Clover, Shopify, Lightspeed, Revel, and any other POS system. We also integrate with QuickBooks, Xero, and major banking platforms to pull financial data. If your POS system isn’t directly supported, bank statements and accounting data provide the same underwriting information.