Restaurant funding repayment terms—how long you have to repay—vary by product and provider. Shorter terms mean higher daily payments; longer terms mean lower daily payments but more total cost if the factor rate is higher. Here's what to consider.
How Term Length Works
For a restaurant cash advance, the term is the expected period to repay. With percentage-based repayment, the term depends on your sales—faster sales mean faster repayment. See repayment as percentage of sales. For fixed ACH products, the term is set in months.
Shorter vs Longer Terms
Shorter terms mean you repay faster—less total cost if the factor rate is similar, but higher daily or monthly payments. Longer terms mean lower daily payments but more time paying. For restaurants with uneven revenue, a structure that flexes with sales can help. See holdback percentage for how daily payments are set.
What Affects Your Term
Advance amount, factor rate, holdback percentage, and your revenue pattern all affect how long repayment lasts. Providers may offer different term options. Compare restaurant funding options and ask about flexibility.
Key Takeaways
Term length affects daily payments and total cost. Shorter terms mean faster repayment. Compare terms with factor rates and holdback.
Frequently Asked Questions
How long is a typical restaurant funding term?
Terms vary—from a few months to a year or more. Percentage-based repayment depends on your sales; fixed ACH has a set term.
Can I extend my repayment term?
Terms vary by provider. Some may offer extensions or refinancing. Ask before committing.
Does a longer term cost more?
It depends on the factor rate and structure. A longer term with a lower factor can sometimes cost less than a shorter term with a higher factor. Compare total repayment.