How we picked
Filtered to lenders with documented track records funding brick-and-mortar operations. SBA preferred lenders ranked first for build-out, equipment, and acquisition because SBA 7(a) is the only structurally correct primary product at $250K+ build-out scale. Embedded POS capital (Toast, Square) prioritized for operational simplicity. Working capital MCA for rent + payroll bridge moments. Equipment financing for refresh cycles. CDFI for sub-$250K owner-operated retail and services.
Top picks at a glance
| Lender | Best for | Amount | Speed | Min credit | Action |
|---|---|---|---|---|---|
| Live Oak Bank | Best SBA 7(a) for brick-and-mortar build-out, acquisition, and real estate | $25,000 – $25,000,000+ | 30 – 90 days underwriting (SBA standard) | 680+ typical | Apply → |
| Toast Capital | Best embedded capital for restaurants on Toast POS | $5,000 – $300,000 | Funds in 1 – 3 business days after approval | No published floor — Toast underwrites against POS history, not FICO | Apply → |
| Square Capital | Best embedded capital for retail and services on Square POS | $300 – $250,000 | Funds as soon as next business day | No FICO pull — Square underwrites entirely against your Square sales history | Apply → |
| Beacon Funding | Best equipment financing for brick-and-mortar equipment refresh cycles | $5,000 – $1,000,000 | Funding in 1 – 5 business days | 550+ | Apply → |
| Credibly | Best fast working capital for brick-and-mortar rent + payroll bridges | $5K – $600K | As fast as 4 hours | 550+ | Apply → |
| Accion Opportunity Fund | Best CDFI for owner-operated brick-and-mortar retail and services | $5,000 – $250,000 | Funding in 5 – 15 business days | 550+ (more flexible than banks) | Apply → |
Advertiser disclosure: Fundnode may earn referral fees from funders listed on this page when you apply through us. This does not affect editorial rankings — see our methodology.
Detailed reviews — our 6 picks
#1 · Best SBA 7(a) for brick-and-mortar build-out, acquisition, and real estate
Live Oak Bank
Max amount
$25,000,000+
Cost
SBA 7(a) APR prime + 2.75% to 4.75%
Speed
30 – 90 days underwriting (SBA standard)
Min credit
680+ typical
Why we picked it
#1 SBA 7(a) lender with deep underwriting for brick-and-mortar verticals — restaurants, retail, salons, fitness, medical, auto repair. Up to $5M for build-out, equipment, acquisition, real estate, and working capital wrapped into one loan. Prime + 2.75-4.75% APR over 10-25 years. 60-90 day timeline. The cheapest capital available for brick-and-mortar deals above $250K.
The strength
Largest SBA 7(a) lender in the US by dollar volume for 7+ consecutive years. Industry-specialty teams (veterinary, dental, funeral homes, self-storage, agriculture, hotels). Deep understanding of niche-vertical underwriting. Dramatically cheaper than MCA for qualifying merchants.
The watch-out
Long underwriting timeline (45-90 days typical). Requires strong credit (680+), 2+ years operating, clean financials. Industries outside their specialty get less attention.
Qualifications
24 months
$20,000+
680+ typical
#2 · Best embedded capital for restaurants on Toast POS
Toast Capital
Max amount
$300,000
Cost
Factor 1.13 – 1.36 (single fee, no compounding)
Speed
Funds in 1 – 3 business days after approval
Min credit
No published floor — Toast underwrites against POS history, not FICO
Why we picked it
Toast Capital offers embedded MCA-style financing for restaurants running Toast POS, repaid as a percentage of Toast-processed sales. Simpler operationally than third-party MCA, with repayment that auto-scales to slower weeks. Pre-qualified offers in the Toast admin. Useful for restaurants $30K+/mo processing that want zero application friction. Pricing isn't transparent — always compare against Credibly LOC or SBA before committing.
The strength
Embedded in the Toast POS dashboard — eligible restaurants see a pre-qualified offer with no application. Repayment is auto-deducted as a fixed percentage of daily Toast deposits, so cash flow stays proportional to revenue. Single fee disclosed up front; no daily compounding factor games.
The watch-out
Only available to Toast POS customers — you have to be running their hardware/processing already. Loan amounts cap at roughly 70% of trailing 12-month Toast volume. If you switch processors, the agreement requires you to pay off the remaining balance immediately.
Qualifications
6 months
Toast POS volume drives offers — typically $10,000+/mo processed
No published floor — Toast underwrites against POS history, not FICO
#3 · Best embedded capital for retail and services on Square POS
Square Capital
Max amount
$250,000
Cost
Single fixed fee (typically 10 – 16% of loan amount)
Speed
Funds as soon as next business day
Min credit
No FICO pull — Square underwrites entirely against your Square sales history
Why we picked it
Square Capital is the retail / services equivalent of Toast Capital for businesses running Square POS — coffee shops, boutique retail, salons, food trucks, mobile services. Repaid as a percentage of Square-processed sales. Pre-qualified offers in the Square dashboard. Useful for established Square sellers $20K+/mo processing.
The strength
Most merchant-friendly headline structure in the industry: one fixed fee, no APR equivalents, no daily/weekly debits — repayment is a flat percentage of daily Square card sales until paid off. Eligibility check appears in your Square dashboard with no application. Approval typically arrives in minutes.
The watch-out
Square chooses who they offer to — you can't apply if Square doesn't surface an offer. Loan amount usually caps at ~1.4× monthly Square sales. The single fixed fee on a 9-month payback typically works out to 30–60% APR-equivalent, similar to mid-tier MCA. Only available to active Square sellers — if you stop processing, repayment converts to fixed daily debits.
Qualifications
12 months
$10,000+ in Square card sales typical floor for meaningful offers
No FICO pull — Square underwrites entirely against your Square sales history
#4 · Best equipment financing for brick-and-mortar equipment refresh cycles
Beacon Funding
Max amount
$1,000,000
Cost
APR 8 – 25%
Speed
Funding in 1 – 5 business days
Min credit
550+
Why we picked it
Brick-and-mortar businesses are equipment-heavy — restaurant kitchen equipment, retail fixtures, salon stations, fitness equipment, medical and dental equipment, auto repair lifts and diagnostics. Beacon funds the high-ticket equipment at 10-22% APR with equipment as collateral, dramatically cheaper than MCA. 550+ credit acceptable. Section 179 deduction applies. Useful for refresh cycles between major SBA-funded build-outs.
The strength
Equipment financing with broader industry acceptance than larger competitors. Will fund specialty equipment (food trucks, photography gear, fitness equipment, salon equipment). Lower credit threshold (550+).
The watch-out
Higher rates than bank equipment financing for prime credit. Smaller deal cap. Industry specialization can mean less depth in any single vertical.
Qualifications
12 months
$10,000+
550+
#5 · Best fast working capital for brick-and-mortar rent + payroll bridges
Credibly
Max amount
$600K
Cost
Factor 1.11+ (MCA)
Speed
As fast as 4 hours
Min credit
550+
Why we picked it
Rent + payroll cycles create predictable cash-crunch moments for brick-and-mortar (slow week coincides with month-end rent). Credibly funds in as fast as 4 hours. 550+ credit, 6+ months operating, $15K+/mo revenue. Multi-product (MCA + LOC + term) — LOC structure is the right tool for recurring rent bridge needs.
The strength
March 2026 API V2 + Cloudsquare integration — most modern submission UX in MCA. $3B+ deployed, 60K+ SMBs. Publishes factor rates honestly (starting 1.11 for A-paper).
The watch-out
The 1.11 headline is the A-paper floor; average factor is closer to 1.32. ISO commission terms aren't public.
Qualifications
6 months
$15,000
550+
#6 · Best CDFI for owner-operated brick-and-mortar retail and services
Accion Opportunity Fund
Max amount
$250,000
Cost
APR 8.49% – 24.99%
Speed
Funding in 5 – 15 business days
Min credit
550+ (more flexible than banks)
Why we picked it
Mission-driven CDFI with APR 8.49-24.99% — dramatically cheaper than MCA. $5K-$250K, 5-15 day timeline. Strong fit for owner-operated brick-and-mortar retail, services, and small restaurants that don't yet have the operating history or revenue scale for SBA. Particularly relevant for minority-owned, women-owned, and immigrant-owned brick-and-mortar operations.
The strength
Community Development Financial Institution (CDFI) — government-supported mission lender for underserved markets. Lower credit thresholds (550+). Strong support resources beyond just lending — coaching, networking. Lower APRs than alternative MCA equivalents.
The watch-out
Long underwriting timeline (5-15 days). Application paperwork heavier than fintech competitors. Maximum loan size ($250K) caps mid-market use.
Qualifications
12 months
$4,000+
550+ (more flexible than banks)
Frequently asked questions
- Should a brick-and-mortar business use SBA or MCA for build-out?
- Almost always SBA. A typical brick-and-mortar build-out (restaurant fit-out, salon build-out, fitness studio build-out, medical practice build-out) costs $200K-$1.5M+. SBA 7(a) via Live Oak prices that at prime + 2.75-4.75% APR over 10 years — typical total interest $50K-$400K spread over a decade. The same $500K as MCA at factor 1.35 costs $175K in 12 months paid as daily ACH that would strangle the business during the critical first-year ramp. The only valid case for MCA on brick-and-mortar build-out is bridge financing while SBA is in underwriting.
- Is Toast Capital or Square Capital better than third-party MCA?
- Operationally simpler — embedded offers appear in the POS dashboard with zero application friction, and repayment auto-scales to slower weeks. Pricing isn't transparent, so always run a comparison quote against Credibly LOC or a Live Oak SBA before committing to embedded capital. For deals under $50K with strong POS history, embedded capital frequently wins on operational simplicity. For deals over $100K, the transparency gap usually favors getting a comparison quote.
- How do brick-and-mortar businesses finance equipment refresh between SBA loans?
- Equipment-secured financing (Beacon Funding, Currency Capital, Balboa Capital, Crest Capital) at 10-22% APR with the equipment as collateral. Materially cheaper than MCA for any equipment package over $25K. Section 179 deduction applies. For smaller refresh ($5K-$25K), Accion CDFI or a Credibly term loan can be more efficient than equipment-secured. For larger refresh wrapped into a broader expansion, Live Oak SBA 7(a) with equipment as part of the loan is the cheapest path.
- What revenue do I need to qualify for brick-and-mortar funding?
- Live Oak SBA: $40K+/mo trailing revenue and 680+ credit typical for $250K+ deals. Toast Capital: $30K+/mo Toast-processed revenue. Square Capital: $20K+/mo Square-processed revenue. Beacon equipment: $30K+/mo and 24+ months operating typical. Credibly MCA: $15K+/mo, 550+ credit, 6+ months. Accion CDFI: $5K+/mo and operating history.
Related reading
- Best MCA funders for online businesses 2026
- Best restaurant funding companies 2026
- Best equipment financing companies 2026
- The full 2026 ranking — 100 funders
Methodology
How we chose
Ranking criteria
- Use-case fit — funder must qualify the merchant profile this page targets (credit, time-in-business, revenue, industry).
- Pricing transparency — published factor-rate or APR-equivalent disclosure outweighs marketing-only quotes.
- Speed-to-fund — verified time from signed contract to ACH deposit, not 'as fast as' marketing claims.
- Contract terms — daily/weekly debit structure, prepayment treatment, COJ / personal guarantee posture.
- Customer-experience signals — BBB profile, Trustpilot, ISO chatter, and direct merchant feedback collected via Fundnode applications.
Sources consulted
- Funder-published rate cards, contract templates, and disclosure pages (refreshed quarterly).
- Public regulatory filings — California DFPI commercial-financing disclosures, New York commercial-financing disclosure law filings.
- Direct merchant feedback collected through Fundnode's /qualify funnel (n > 200 since 2026-01).
- ISO desk operator interviews — anonymized commentary on approval patterns and stipulations.
Update cadence
Reviewed quarterly. Last updated 2026-06-24.
Conflict of interest
Fundnode may earn referral fees from funders listed on this page when merchants apply through us. Rankings are editorial and independent of fee economics — funders cannot pay for placement.