If you’re looking for more information about refinancing an existing Toast Capital Loan, check out the Toast Capital: Refinancing Existing Toast Capital Loans FAQ page.
Visit your Toast Capital Dashboard to see if you have pre-qualified offers.†
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What kinds of loans and debt can I refinance with a Toast Capital loan?
Toast Capital Loans are great for eligible Toast customers looking to refinance business debt.
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.
What is sales-based financing? Is it a merchant cash advance (MCA)?
Sales-based financing covers many types of loans that are automatically repaid through your daily sales. For example, a Toast Capital Loan is sales-based financing because it is repaid through your daily card transactions processed through Toast.
A merchant cash advance (MCA) is similar to sales-based financing, but is not a loan. Certain lenders may call their sales-based loan product a merchant cash advance because of their similarities, but not all of them are actually merchant cash advances.
For an actual merchant cash advance, the party giving the money to the borrower has no recourse if the borrower stops repaying (or goes out of business). Since it is not a loan, merchant cash advances technically cannot be refinanced.
To see if your debt can be refinanced, you could ask your lender if they can give you a Payoff Letter.
How do I refinance loans with a Toast Capital Loan?
Before starting, check to see if the loans you want to refinance are sales-based financing.
Refinance Debt Other Than Toast Capital Loans
If you are refinancing debt other than a Toast Capital Loan, your requested funding amount must be enough to at least repay the total outstanding amount. The process is as follows:
Log into your Toast Capital Dashboard and customize your pre-qualified offer†
Select a funding amount that will refinance your total existing balance
Complete the Toast Capital Loan application
A Toast Capital Specialist will connect with you to determine your eligibility and walk you through the remainder of the refinancing process
If approved, funding will be disbursed automatically to your lenders, and any remaining funds will be deposited into your bank account on file with Toast
Refinance an Existing Toast Capital Loan
You could become eligible to refinance an existing Toast Capital Loan as early as it is 50% repaid or more. For additional FAQs, check out the Toast Capital: Loan Refinancing FAQ page. The process is as follows:
Log into your Toast Capital Dashboard and customize your pre-qualified offer†
If approved, funding will first be applied to refinance your existing Toast Capital Loan, and your remaining funding will be deposited into your bank account on file with Toast
What information do I need to refinance a non-Toast Capital loan or sales-based financing?
To refinance an existing sales-based financing, you will need to provide additional information after submitting your Toast Capital Loan application — namely, a Payoff Letter from your lender.
A Payoff Letter provides instructions and details such as your outstanding loan amount and the lender’s bank account information to determine your refinancing eligibility and allow Toast Capital to send funds directly to the lender and pay off your loan.
When would I be unable to refinance a non-Toast Capital loan or sales-based financing?
Some primary reasons why you may not be able to refinance sales-based financing include:
Your business is located in a jurisdiction that Toast Capital currently cannot support for refinancing these types of debt, but may be available for refinancing in the future.
Your pre-qualified offer amount is not sufficient to repay your outstanding sales-based financing in full.
The Toast Capital Specialist team is unable to receive a Payoff Letter or other official documentation from your lenders.
Why do I need a payoff letter to refinance certain non-Toast Capital loans or sales-based financing?
The Payoff Letter provides official information directly from your lenders to ensure your Toast Capital Loan will be sufficient to cover your remaining total balance, and ensure your lender supports the refinancing process through a Toast Capital Loan.
What are the requirements for refinancing certain non-Toast Capital loans or sales-based financing?
Your requested funding amount must be at least enough to repay the entire amount of your existing sales-based financing
You will need to obtain a Payoff Letter from your lender(s)
If you are approved for a Toast Capital Loan, you will not be able to take out any additional sales-based financing until your Toast Capital Loan is fully repaid
Can I refinance my debt and also use funding for other business needs?
Yes! As long as you request enough funding (or are pre-qualified for enough funding) to cover your refinancing request, any additional funds can be used to run and grow your business.
Where can I go for Toast Capital loan support?
Please reach out to a Toast Capital Specialist and they can help you answer your questions:
Email a specialist at capital@toasttab.com
Call a specialist at 617-209-3198 (available Monday - Friday from 9 a.m. - 5 p.m. ET)
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.
†Pre-qualified offers are based on information about your business 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 business' ability to meet applicable credit and eligibility criteria.