Toast Capital Welcome Loan FAQs

This FAQ applies only to certain eligible businesses. Please note — this feature is currently in limited release and may not be available to you if you accessed this FAQ link from an external source.


*Toast Capital Loans are issued by WebBank. Loans are subject to credit approval. WebBank reserves the right to change or discontinue this program without notice at any time. This is not a line of credit and funds are disbursed as one lump sum. Borrower must successfully complete the Toast customer onboarding process, process at least three of the past seven days on the Toast platform before requesting funds, and continue to satisfy credit criteria at the time funding is requested. Registered business entities with less than one year of operations or located in FL, VA, CA, NY, UT, CT, or GA are not currently eligible to apply for the Toast Capital Welcome Loan.   

1. General Welcome Loan FAQs


What is the Welcome Loan?

The Toast Capital Welcome Loan* is a program that allows existing businesses considering Toast as their new POS to apply for a Welcome Loan offer.


The Toast Capital Welcome Loan has the same great features as Toast Capital Loans, including:

  • One transparent fixed fee — no application fees, origination fees, or compounding interest

  • Flexible daily repayment†† — automatically repay with a fixed percentage of your daily card transactions

  • No personal guarantee and no credit score impact


If approved, applicants will receive a Welcome Loan offer with their maximum funding amount, which will be locked in for a period of 90 days after approval notification or 29 days after they begin processing on Toast — whichever comes first. They will also see the pricing and daily repayment percentage for this maximum amount. 


Approved applicants can request funds after going live with Toast and processing card transactions for three days.  They must request funds the earlier of 90 days after being approved or 29 days after they begin processing on Toast.



How long is the repayment period for a Toast Capital Welcome Loan?

The Toast Capital Welcome Loan has a target repayment period of 90 days, with a maximum repayment term of 150 days. Any outstanding balance due at the end of the maximum term will be collected automatically via ACH.



Can I negotiate the terms of my Welcome Loan offer?

Welcome Loan offers cannot be negotiated. If approved, you can effectively reduce your Welcome Loan’s fixed loan fee and daily repayment percentage if you request less funding than your maximum approved amount.


If the terms of your Welcome Loan offer do not meet your needs, you could become eligible for larger loans after processing through Toast for 30 days — and potentially even larger loans with longer target repayment terms after you process for 90 days.



How much does the Welcome Loan cost?

The Welcome Loan has one fixed loan fee that’s based on the amount of funding requested. The loan fee is repaid over the life of the loan — there are no application fees, upfront costs, origination fees, or late fees. 



How does repayment work?

The Welcome Loan is automatically repaid as a fixed percentage of your daily card transactions processed through Toast. You’ll repay more on busy days, less on slow days, and nothing on days when you’re closed. Any outstanding balance due at the end of the maximum 150-day term will be collected automatically via ACH.



Can I get more funding or a different target repayment term?

No, but you could become eligible for larger loans after processing through Toast for 30 days — and potentially even larger loans with longer target repayment terms after you process for 90 days.



Can I apply for a Welcome Loan and an Easy Pay lease?

Yes! Applying for an Easy Pay lease will not affect your eligibility for a Welcome Loan. The Easy Pay lease and Welcome Loan will have separate daily holdback rates and separate target repayment dates.


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2. Welcome Loan Application


What is my Deal Number?

Your Deal Number is a unique identifier for your Welcome Loan application. You can get your Deal Number from your Toast sales representative.



How do I start my Welcome Loan application?

Your Toast sales representative will provide you with the application link and unique Deal Number.



Who can apply for a Welcome Loan?

Only a beneficial owner or control person of your business can apply.

  • A beneficial owner has 25% or more ownership of the business

  • A control person is someone who controls, manages, or directs your restaurant, such as an executive officer, senior manager, or someone who performs similar functions



What do I need for my application?

The Welcome Loan application asks for the following types of information:

  • Business and legal information

  • Ownership details

  • Basic financial information including your current debts


You’ll also need to connect your banking data (and optional accounting data) to provide Toast with additional information about your business. Your account information is encrypted and your credentials will never be shared with Toast. 



Why do I need to connect my banking and accounting data?

We require Welcome Loan applicants to connect banking (and optional accounting data) to provide Toast with additional information about your business. Your account information is encrypted and your credentials will never be shared with Toast.



Does applying cost money?

There is no cost to apply for a Welcome Loan!



Do I need a personal guarantee?

There is no personal guarantee required!



Does applying affect my credit score?

There’s no impact to your credit score and no credit report required.



Do I need collateral?

Toast Capital reserves the right to place a Uniform Commercial Code (UCC) lien to claim a security interest in business assets — primarily sales receivables, since Toast Capital Loans are secured by your future receivables (i.e. your card sales processed through Toast). 



How long do I have to apply?

You can apply any time before you start processing on Toast! After you start processing, your eligibility and terms may change.


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3. Application Decisioning


How long does it take to get a decision?

You can expect to receive a decision within 1-2 business days.



What happens if I’m approved?

Applicants that are approved are able to lock in their maximum funding amount for 90 days or 29 days after they begin processing on Toast — whichever comes first. During this period, applicants must onboard to Toast and process card transactions through Toast for three out of seven days. They can then make a one-time request for funding and have funds disbursed in one lump sum as soon as the next business day after a beneficial owner or control person signs their credit agreement, as long as they continue to meet credit criteria at the time of the funding request.



How long does approval last?

Conditional approval lasts for 90 calendar days after approval notification or 29 days after they begin processing on Toast — whichever comes first. Applicants must process card transactions through Toast for three out of seven days and request funding before this period expires in order to receive their funding, subject to a confirmation of eligibility.



What happens if my approval expires?

If your approval expires, you will not be able to reapply for a Welcome Loan. However, we regularly determine whether Toast Customers may be eligible to apply for a Toast Capital Loan and you may see an offer to apply if you begin processing on Toast and satisfy eligibility requirements.



I was denied — can I apply again?

No.  However, we regularly determine whether Toast Customers may be eligible to apply for a Toast Capital Loan and you may see an offer to apply if you begin processing on Toast and satisfy eligibility requirements.


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4. Requesting Funds


How do I request funding?

After processing card transactions through Toast for three out of seven days, applicants can easily request funding through their Toast Capital dashboard. Approved applicants must request funds the earlier of 90 days after being approved or 29 days after they begin processing on Toast.


Only a beneficial owner or control person can sign the credit agreement.

  • A beneficial owner has 25% or more ownership of the business

  • A control person is someone who controls, manages, or directs your restaurant, such as an executive officer, senior manager, or someone who performs similar functions



Why do I need to process cards for three out of seven days to request funding?

Processing cards through Toast for three out of seven days enables us to confirm that your restaurant has successfully onboarded as a Toast customer.



Why do I need an eligibility check after I request funding? 

The eligibility check is quick and should take just a moment after you submit your funding request. The eligibility check is in place to make sure that you continue to satisfy credit approval requirements for funding.



How long does it take to get my funds after I request?

Funding is disbursed as soon as the next business day a beneficial owner or control person signs the credit agreement.


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5. Additional Questions


How can I contact a Toast Capital Specialist?

  • Email [email protected]

  • Call  617-209-3198, available Monday through Friday, 9 AM - 5 PM ET



Where can I learn more about the Toast Capital Loan program?

As your relationship and sales on Toast grow, you could become eligible to apply for a Toast Capital Loan with larger funding amounts and target repayment terms. Eligibility is based on information about your restaurant and your account history with Toast, including your sales history, if applicable. All loans are subject to credit approval, and terms and availability may change based on your restaurant’s ability to meet applicable credit and eligibility criteria.


Pre-qualified offers

Welcome Loan Offer

Introductory Offers

Standard Offers

Days processing card transactions through Toast to become eligible to apply

0

3 ~ 29 days

30 ~ 89 days

90+ days

Loan amounts (based on eligibility)

$5k up to $30k

$5k up to $30k

$5k up to $75k

$5k up to $300k

Target repayment periods†† (based on eligibility)

90 days

90 days

90 days

90 days

270 days

360 days


Pre-qualified offers are based on information about your restaurant and your account history with Toast, including your sales history, if applicable. All loans are subject to credit approval, and terms and availability may change based on your restaurant’s ability to meet applicable credit and eligibility criteria.


††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.


Additional resources:


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