Restaurant cash advance repayment is often tied to a percentage of your daily card sales. That means payments flex with your revenue—slower days, smaller payments; busier days, larger payments. Here's how it works.
How Percentage-Based Repayment Works
Instead of a fixed monthly payment, a percentage of each day's card sales goes toward repayment. The provider withholds this from your merchant account or debits it via ACH. See restaurant funding holdback percentage for how the daily percentage is set. This structure can align with seasonal cash flow—slower months mean smaller payments.
Advantages for Restaurants
Revenue is uneven—seasonal swings, weather, events. Fixed loan payments don't flex. Percentage-based repayment does. When revenue drops, your payment drops. When it rises, you repay faster. Many restaurant owners prefer this for short-term cash flow gaps. See how restaurants handle seasonal cash flow.
What to Watch
Higher percentages mean more of each day's revenue goes to repayment. During slow periods, that can still strain cash flow. Compare the holdback percentage, factor rate, and total repayment. See restaurant funding factor rate explained for cost.
Key Takeaways
Repayment flexes with your sales. Slower days mean smaller payments. Compare holdback, factor rate, and total cost. Not all products use this structure—some use fixed ACH.
Frequently Asked Questions
How is the repayment percentage determined?
Providers typically set it based on your advance amount, factor rate, and expected repayment term. Higher percentages mean faster repayment.
Does repayment include cash sales?
Usually no. Repayment is typically tied to card sales processed through your merchant account. Check your agreement.
Can I pay off early?
Terms vary. Some providers allow early payoff; others may have prepayment terms. Ask before committing.