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This FAQ applies only to certain eligible Toast customers. Please note — this feature is currently in limited release with a select number of Toast customers and may not be available to you if you accessed this FAQ link from outside of your Toast Web backend.
If you have an outstanding Toast Capital Loan, you may be able to take out additional Toast Capital Loans or refinance an existing Toast Capital Loan. This article primarily focuses on additional loans, but also covers refinances. We'll add some definitions for both below and use these terms throughout these FAQs to make them easier for you to follow.
“Additional Loan”: An Additional Loan is a Toast Capital Loan that is taken out while you have an outstanding Toast Capital Loan(s). This allows you to have multiple Toast Capital Loans at once to meet your financing needs as they come up, based on eligibility.
“Refinance Loan”: A Refinance Loan is a Toast Capital Loan that provides funds which are first used to fully repay an outstanding Toast Capital Loan, with the remaining funds deposited into your bank account. You can think of this as “renewing” an existing Toast Capital Loan by replacing it with a new one. Refinance Loan offers are based on eligibility and require an existing Toast Capital Loan to be 50%+ repaid. Check out our Refinancing FAQ for more details.
1. Eligibility and funding amount
Eligibility is subject to credit approval and additional criteria, including (but not limited to):
Your current holdback rate for your other Toast Capital Loan(s) — this is to ensure that the majority of your daily revenue goes to you and not toward repayment of your Toast Capital Loan(s).
An outstanding Toast Capital Loan that is less than 50% repaid — once a Toast Capital Loan is more than 50% repaid, you will not have the option to apply for an Additional Loan. However, you may become eligible to refinance it at that point.
What is a refinance?: Refinancing allows you to use the funds from a new Toast Capital Loan to pay off your outstanding balance and then keep the rest.
Once all of your loans that have been 50%+ repaid have been refinanced or fully repaid, you may become eligible to apply for a new Toast Capital Loan and/or Additional Loans.
You can only apply for up to your pre-qualified funding amount. If you need more funding, you may be able to refinance your existing Toast Capital Loan to receive access to a larger funding amount after it is 50% repaid.
If you have multiple loans that are 50%+ repaid and eligible for a refinance, you will only be eligible to refinance one. The loan eligible for refinance will be the loan with the largest daily holdback rate, which generally will also allow you to receive the largest pre-qualified refinance offer amount.
Once your Toast Capital Loan is over 50% repaid, you will no longer be able to take out an additional Toast Capital Loan and will only be able to refinance your existing loan (if eligible). However, once all of your loans that have been 50%+ repaid have been refinanced or fully repaid, you may become eligible to apply for new Toast Capital Loans and/or Additional Loans again.
You might be able to access the entire remaining amount — or more — of your original pre-qualified Toast Capital Loan offer; however, this is not guaranteed. Your pre-qualified amount available for Additional Loans is based on credit approval guidelines and your current holdback rate for your other outstanding Toast Capital Loan(s).
If you have repaid 50% or more of any of your existing Toast Capital Loans and are eligible to refinance one of them to access additional funding, you will not be able to take out an Additional Loan at this time. Once all of your loans that have been 50%+ repaid have been refinanced or fully repaid, you may become eligible to apply for new Toast Capital Loans and/or Additional Loans again.
Your eligibility to apply for an Additional Loan may have changed since you last checked your Toast Capital dashboard.
There is no limit to the amount of outstandingToast Capital Loans you can have at once. However, to make sure that the majority of your daily revenue goes to you and not toward repayment of your Toast Capital Loan(s), there is a maximum aggregate daily holdback rate across all of your outstanding Toast Capital Loans. See the section on repayment and holdback rate below for more details.
You’ll have the same application experience for any Additional Loans, where you begin by customizing your Toast Capital Loan offer.
You can see the daily holdback rate for any outstanding Toast Capital Loans, including Additional Loans and Refinance Loans, on your Toast Capital dashboard. The daily holdback rate on any Toast Capital Loan is based on information about your restaurant, including sales revenue projections, and credit approval guidelines.
To make sure that the majority of your daily revenue goes to you and not toward repayment of your Toast Capital Loan(s), there is a maximum aggregate daily holdback rate across all of your outstanding Toast Capital Loans (including any additional or refinanced Toast Capital Loans), which is also based on information about your restaurant, including sales revenue projections, and credit approval.
If you have more than one outstanding Toast Capital Loan (including any Additional Loans and Refinance Loans), the daily holdback rates are added together to arrive at a total holdback rate.
If you repay one of your outstanding Toast Capital Loans in full, your total daily holdback rate will be the daily holdback rate of the remaining outstanding Toast Capital Loan(s).
The example below shows a scenario where a customer took out two Toast Capital Loans and did not refinance either of them.
4. Refinancing vs. multiple Toast Capital Loans
Taking out an Additional Loan helps you access additional funding without waiting until you have repaid more than 50% of your existing Toast Capital Loan for a potential refinancing offer.
Once you have repaid 50% or more of an existing Toast Capital Loan, you will not have the option to apply for an additional Toast Capital Loan; however, you may be eligible to refinance the existing Toast Capital Loan. If you have more than one Toast Capital Loan that has been at least 50% repaid, you will be eligible to refinance only the Toast Capital Loan with the highest daily holdback rate.
Once all of your loans that have been 50%+ repaid have been refinanced or fully repaid, you may become eligible to apply for a new Toast Capital Loan and/or Additional Loans again.
Currently, if you have repaid less than 50% of your existing Toast Capital Loan’s outstanding balance, you may only apply for an additional Toast Capital Loan. You may choose to wait until you are 50% repaid to potentially refinance your Toast Capital Loan instead.
Once you have repaid 50% or more of an existing Toast Capital Loan, you will not have the option to apply for an additional Toast Capital Loan; however, you may be eligible to refinance it. Once all of your loans that have been 50%+ repaid have been refinanced or fully repaid, you may become eligible to apply for a new Toast Capital Loan and/or Additional Loans again.
You can currently only refinance the outstanding Toast Capital Loan with the largest daily holdback rate, which generally would provide you with access to the largest available pre-qualified offer amount for your business.
If you have additional questions, please email us at capital@toasttab.com. You can also call Capital support at (617) 209-3198. Capital support hours are Monday-Friday 9AM-5PM 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 restaurant and your account history with Toast, including your sales history. 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.