Toast Capital: Loan FAQ

Toast Capital Loans

What is Toast Capital?
Is Toast Capital a different company than Toast?
Who is the lender on the Toast Capital Loan?

What is Toast Capital?

Toast Capital connects Toast businesses with access to funding for any business need without any credit check or personal guarantee. Toast customers can apply for a Toast Capital Loan in just a few minutes via the and, once approved, receive funds in as soon as one business day after signing your loan agreement. Toast Capital Loans have one fixed, transparent cost - no compounding interest or hidden fees. Toast Capital Loans are made by WebBank.

Is Toast Capital a different company than Toast?

Toast Capital is owned by Toast, Inc. and is dedicated to providing Toast customers with access to their funding needs throughout the application, disbursement, and servicing stages. Toast Capital Loans are offered by WebBank through its partnership with Toast Capital. WebBank and Toast Capital are not affiliates.

Who is the lender on the Toast Capital Loan?

Toast Capital Loans are issued by WebBank.

Toast Capital Loan Eligibility and Pre-qualified Offers

What is my Toast Capital dashboard?

Your is a web application that allows you to review any pre-qualified offers available and apply for a Toast Capital Loan. If you are approved, you will also sign your credit agreement through the Toast Capital dashboard. The Toast Capital Dashboard can be accessed by authorized users through Toast Web.

How do I get pre-qualified for a Toast Capital Loan offer?

Toast Capital Loan eligibility is based on a variety of factors. Some of those factors include your processing volume (if applicable), time on Toast, and status of any bankruptcy filings. You can look to see if you have a pre-qualified offer by visiting your and logging in as an authorized user. If you log in and do not see a pre-qualified offer, you are not eligible for a loan at this time. But don't worry! Toast Capital Loan eligibility is evaluated regularly. You can learn more about Toast Capital Loan eligibility criteria in this Support Center article, .

How soon can I become eligible to receive a pre-qualified Toast Capital Loan offer?

Toast customers begin to be evaluated for pre-qualified offers as soon as they process cards through Toast for 3 days. As your account history and sales on Toast grow, you may become eligible for larger loan amounts and longer target repayment periods. See below for more details.

Pre-qualified offers	Introductory Offers	Standard Offers
Days processing card transactions through Toast	3 ~ 89 days	90+ days
Loan amounts (based on eligibility)	$5k up to $100k	$1k up to $300k
Target repayment periods (based on eligibility)	90 days	90 days 270 days 360 days

Can I still get a Toast Capital Loan if I have other types of business debt?

Yes, you can still get a Toast Capital Loan; however, you can't have pledged your future card-based sales as collateral for any outstanding business debt.

Can I still get a Toast Capital Loan if I have a loan or an MCA with another lender or bank?

Your eligibility will not be impacted by another commercial loan from another bank or lender.

Toast Capital has recently added the ability to refinance loans other than Toast Capital Loans for eligible Toast customers, including sales-based financing, which are loans that are repaid through your daily sales. To learn more, check out the . A merchant cash advance (MCA) cannot be refinanced.

If you have a merchant cash advance (MCA) that includes an actual or potential security interest in card receivables, then you would be unable to sign for and receive a Toast Capital Loan until that MCA has been completely paid.

Why? Repayment of your Toast Capital Loan occurs through the collection of your future debit and credit card receivables, and cannot be refinanced if it is a true MCA. MCA agreements typically require you to pledge those same receivables as collateral to ensure payments. If you have already used your future receivables to collateralize an MCA, then the receivables may not be available to repay your Toast Capital Loan. So, under the Toast Capital Loan credit agreement, you are prohibited from having this type of MCA in place.

Can I apply for a Toast Capital Loan even though I currently do not have a pre-qualified offer available?

If you do not see a pre-qualified offer in your dashboard, you are not eligible for a Toast Capital Loan at this time. If you become eligible, you'll be notified directly in your , where you can also join the Toast Capital Waitlist. You can learn more about Toast Capital Loan eligibility criteria in this Support Center article, .

I had a pre-qualified Toast Capital Loan offer, but it is no longer on the dashboard. What happened?

Can I refinance my Toast Capital Loan?

Yes, once you’ve repaid more than 50% of your existing Toast Capital Loan, your business may become eligible to refinance and receive a new Toast Capital Loan, subject to meeting eligibility requirements (see for the Toast Capital Loan Eligibility FAQ). If eligible, you will receive a pre-qualified offer on your .

If you refinance an existing Toast Capital Loan by taking out a new Toast Capital Loan, proceeds from your new Toast Capital Loan will be used to pay off the full balance of your current loan, and the remaining amount will be transferred to your bank account. This process is automated and requires you to take no action.

If you meet certain eligibility criteria, you may be eligible for a refinance discount.

To learn more about refinancing a Toast Capital Loan, please see .

Toast Capital Loan Cost, Repayment Period, and Holdback Rates

What is the cost of a Toast Capital Loan?

Toast Capital Loans have a fixed fee that will not change regardless of how long it takes to repay the loan. The total amount you owe is the loan amount plus the fixed fee. There is no compounding interest or hidden fees, e.g., no application, prepayment, or late fees.

Do I have to pay interest on a Toast Capital Loan?

Toast Capital Loans do not have interest on top of the fixed fee.

What is the repayment length of a Toast Capital Loan?

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.

Why do longer target repayment Toast Capital Loan offers have larger fixed fees than shorter target repayment Toast Capital Loan offers?

Toast Capital Loans with longer target repayments will generally have larger fixed fees because of the added repayment length, the increase in loan size as well as the risks associated with longer-term loans.

What is my Toast Capital Loan's daily holdback rate?

Your daily holdback rate is the percentage of the daily card sales processed through Toast (including any tips, taxes, service charges, etc.) that will be applied towards repaying your loan. If you're pre-qualified for a Toast Capital Loan, your daily holdback rate can be viewed on your under the "Daily Holdback Percentage" section.

Applying for a Toast Capital Loan

Does applying for a Toast Capital Loan affect my credit score?

No, applying for a Toast Capital Loan does not affect your personal or business credit score.

Will a Toast Capital Loan help me build credit?

No, receiving a Toast Capital Loan will not impact your credit score, either negatively or positively.

Can I apply for a smaller loan than the amount in my pre-qualified Toast Capital Loan offer?

Yes — at the top of your offer screen, there will be a section where you can request an amount between $5,000 and your maximum pre-qualified offer amount (or between $1,000 and your maximum pre-qualified offer amount for Standard Toast Capital Loan Offers with a 90-day target term). See below for an example.

Does applying for a Toast Capital Loan require a personal guarantee?

No personal guarantees: a Toast Capital Loan doesn't require personal guarantees, so you can invest in your business without putting your personal assets on the line.

Does applying for a Toast Capital Loan require a lien on my business?

Toast Capital reserves the right to place a Uniform Commercial Code (UCC) lien with your state’s Secretary of State on your business at any time. Note that this is not a tax lien.

What is a UCC lien? In the event of a default, a UCC Lien allows Toast Capital to claim a security interest in business assets — primarily sales receivables — with respect to your Toast Capital Loan.
Why might Toast Capital file a UCC lien? Toast Capital Loan repayment occurs through the collection of your future card transactions processed through Toast. Toast Capital reserves the right to file a UCC lien primarily to ensure priority for cases where a customer with an active Toast Capital Loan later enters into an agreement where they pledge their future debit and credit card receivables to another party (e.g. for a merchant cash advance).

What types of business debt does Toast Capital ask me for on the application?

The Toast Capital Loan application asks for the total amount of business debt in the categories listed below. Toast Capital does not consider operating expenses such as vendor bills or supplier payments business debt.

Business Credit Card debt
Business Line of Credit
Term Loan
Commercial Mortgage
Merchant Cash Advance
Equipment Lease or Loan
Other Loan
Other Debt

What kind of information may be helpful to reference while completing my Toast Capital Loan application?

To start, make sure to verify that the business information and ownership information we have on file is correct. Beyond that, our application asks for standard business and financial information — here are some documents that may be helpful to reference:

Most recent financial statements (e.g. balance sheet and profit & loss statement)
Current debt information (excluding operating expenses such as vendor bills or supplier payments business debt)

I am having trouble signing the credit agreement for my Toast Capital Loan. What should I do?

Make sure you are logged into your . Select View and Sign Agreement. You will then be directed to Docusign to sign the credit agreement. Please reach out to Toast Capital Operations at if you continue to experience trouble signing your credit agreement.

Note: Only a beneficial owner (owns 25% or more of your business) or a control person (executive officer, senior manager, or someone who performs similar functions) can sign a credit agreement on behalf of your business. If your business is a sole proprietorship, only the sole proprietor can sign. If your ownership has changed or if you have added a new control person, we will need to collect the new owner or control person's information to verify their identity.

How can I access my Toast Capital Loan application after I have submitted a funding request?

You can view the status of, and make edits to, your application by logging into your .

Toast Capital Loan Funding

How do I receive funds for my Toast Capital Loan?

Funds will be deposited into a verified bank account on file with Toast, Inc. where you receive your deposits. If you need to change your bank account on file, make any updates before you start your Toast Capital Loan application. To learn how to make bank account changes, check out this Support Center article: .

How quickly will I receive funds for my Toast Capital Loan?

Upon signing your credit agreement, funds will be deposited into your bank account as soon as next business day.

How can I use Toast Capital Loan funds?

Funds can be used for any business need, including covering short-term cash flow, hiring employees, purchasing inventory and equipment, refinancing and paying off debt, renovating an existing location, opening a new location, among many other options.

Toast Capital Loan Repayment

How do I repay my Toast Capital Loan?

Loan repayments are automated as a fixed percentage of daily card sales processed through Toast (including any tips, taxes, service charges, etc.). This means repayment flexes with your sales volume so when sales are slower, you will repay less than on busy days. If you have an outstanding balance at the end of your loan term it will be collected automatically from your bank account. Your fixed fee will not change based on the amount of time it takes you to repay. The amount of daily card sales processed through Toast that are held back toward repayment of your loan is based on your business' historical sales and total loan amount.

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.

When does repayment begin for my Toast Capital Loan?

Your payment will begin four business days after your funds are sent to your bank account.

Can I pay back my Toast Capital Loan early? Is there a penalty for repaying early?

You can prepay at any time at no additional cost by contacting Toast Capital at capital@toasttab.com. Regardless of when you pay off your loan, the total cost will not change. There are no additional fees or discounts provided for paying early.

What do I do regarding my Toast Capital Loan if I’m expecting to close temporarily due to renovations, maintenance, extended holidays, etc.?

If you’re temporarily closing your business, please reach out to a specialist at capital@toasttab.com and let us know the details about your closure to ensure your account stays in good standing.

Are there minimum payments for my Toast Capital Loan?

There are no minimum payments for Toast Capital Loans with a 90-day target repayment term.

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.