Toast Capital: Target Repayment Periods

Learn about the key benefits and trade-offs between a Toast Capital Loan with a 90-day vs. 270-day vs. 360-day target repayment*.

In this Article:

Target Repayment Overview
Key Considerations
Toast Capital Loans Summary

Target Repayment Overview

Toast Capital offers access to loans that have target repayment periods of 90 days (90-Day Loan), 270 days (270-Day Loan), or 360 days (360-Day Loan), based on eligibility. The maximum repayment term is 60 days following the end of the target repayment period.

	90-Day Loan	270-Day Loan	360-Day Loan
Potential loan amount	$1k - $100k	$5k - $250k	$5k - $300k
Target repayment & maximum term*	90 days (max term of 150 days)	270 days (max term of 330 days)	360 days (max term of 420 days)
Daily holdback %	When the loan size is the same between these 3 loan options: Longer loans generally result in smaller daily holdback percentages (the percentage of daily card transactions that is used to pay back the loan).
Fixed fee	When the loan size is the same between these 3 loan options: Longer loans generally result in larger fixed fees.
Interest rate	Toast Capital Loans do not have compounding interest.
Minimum payments	90-Day Loans do not have any minimum payments. If you select a 270- or 360-day target term, and you are provided with a Repayment Milestone Schedule with your Credit Agreement, then, every 30 days during the term, your total payments to date must equal the minimum amount disclosed to you. If they fall short, the difference may be collected via ACH.

Key Considerations

Loan Amount

90-Day Loan
Loan amounts range from $1k to $100k based on eligibility. Smaller loans are great for when you need a quick infusion of cash, such as when funding short-term capital needs, paying vendors or staff, or making minor repairs throughout your business.

270-Day Loan
Loan amounts range from $5k to $250k based on eligibility. Larger loans can fund major initiatives for your business, such as renovating your entire business, purchasing multiple pieces of new kitchen equipment, or even expanding to a new location while hiring more staff.

360-Day Loan
Loan amounts range from $5k to $300k based on eligibility — the 360-Day Loan features the largest potential loan amount among Toast Capital Loans. This larger loan amount can unlock new growth opportunities for businesses, such as opening more locations or revamping an entire location.

Target Repayment*

90-Day Loan
With a shorter 90-Day Loan, you can get the loan off your books more quickly. A 90-Day Loan may also be useful for seasonal businesses by enabling them to quickly repay the loan between seasons and help make sure they’re ready for the next season. The 90-Day Loan has a maximum term of 150 days from disbursement; any outstanding balance due at the end of 150 days will be collected via ACH.

270-Day Loan
A longer 270-Day Loan grants you more time to pay back the loan and helps limit the impact of seasonality or extended slower sales periods. Naturally, the downside is that you will be carrying the loan for a longer period (unless you decide to pay the loan’s balance early). The 270-Day Loan has a maximum term of 330 days from disbursement; any outstanding balance due at the end of 330 days will be collected via ACH.

360-Day Loan
The 360-Day Loan estimates a repayment period of approximately one year. This may further smooth out the effects of seasonality, business lulls, or other unexpected slow sales periods by spreading repayments over the course of an estimated 360 days. The 360-Day Loan has a maximum term of 420 days from disbursement; any outstanding balance due at the end of 420 days will be collected via ACH.

Daily Holdback Percentage

If you’re deciding between a 90-Day Loan and 270-Day Loan with similar loan amounts, the 90-Day Loan generally will have a higher daily holdback percentage than the 270-Day Loan. In this scenario, the lower daily holdback percentage for a 270-Day Loan would let you keep more of your daily sales.

Similarly, assuming similar loan amounts, a 360-Day Loan will generally have a lower daily holdback percentage than the 90-Day Loan or 270-Day Loan.

Fixed Fee

All Toast Capital Loan repayment lengths have a single, transparent fixed fee** with no interest. 270-Day Loans generally have a higher fixed fee than a 90-day loan due to risks associated with longer target repayments; for the same reason, 360-Day Loans generally have a higher fixed fee than Toast Capital Loans with shorter target repayments. However, the 360-Day Loan and 270-Day Loan both unlock a significantly larger loan amount (depending on eligibility) and give more time to repay a loan compared to the 90-Day Loan.

Minimum Payments

90-Day Loans do not have any minimum payments. If you select a 270- or 360-day target term, and you are provided with a Repayment Milestone Schedule with your Credit Agreement, then, every 30 days during the term, your total payments to date must equal the minimum amount disclosed to you. If they fall short, the difference may be collected via ACH.

What’s the Bottom Line?

Situations vary from business to business, but in general:

If you need a loan of up to $100k or want to repay a loan more quickly with a lower fixed fee, go for a 90-Day Loan
If you need a loan of up to $250k or want more time to fully repay a loan with a lower daily holdback percentage in exchange for a higher fixed fee, go for a 270-Day Loan
If you need a loan of up to $300k, or want the most available time to fully repay a loan with a lower daily holdback percentage in exchange for a higher fixed fee, go for a 360-Day Loan
If you don’t want to be subject to potential minimum payments, go for a 90-Day Loan. Not all 270-Day Loans or 360-Day Loans are subject to minimum payments; if minimum payments are applicable to you, you will receive a Repayment Milestone Schedule before you sign your Credit Agreement.

Toast Capital Loans Summary

If your business is pre-qualified for a Toast Capital Loan, your pre-qualified offer will appear automatically in your Toast Capital Dashboard. Whether you decide on a 90-Day Loan, 270-Day Loan, or 360-Day Loan, you can expect the same great features that Toast Capital Loans offer, such as:

Once you’ve been approved and signed your Toast Capital Loan agreement, you can expect funds to be sent to your bank account as soon as one business day
Simple, automatic daily loan repayments that flex with your cash flow***
A single, transparent fixed fee with no interest or hidden fees

Toast Capital Loans are issued by WebBank. Loans are subject to credit approval and may not be available to borrowers in certain jurisdictions. WebBank reserves the right to change or discontinue this program without notice.

*Toast Capital Loans offer different target repayment terms ranging from 90 days to 360 days, depending on eligibility. The maximum repayment term is 60 days following the end of the target repayment term. Any outstanding balance due at the end of the maximum term will be collected automatically via ACH.
**Excluding Florida Documentary Stamp Tax costs for Credit Agreements signed in Florida. See your Credit Agreement for details.
***If you select a 270- or 360-day target term, and you are provided with a Repayment Milestone Schedule with your Credit Agreement, then, every 30 days during the term, your total payments to date must equal the minimum amount disclosed to you. If they fall short, the difference may be collected via ACH.