Two-store restaurant group in DC, operating since 2021, over $3M in annual revenue. Strong margins, tight labor and COGS, minimal discretionary spend, consistently busy.
Over the past few years, we've used MCAs from DoorDash, Toast, and other lenders to deal with surprises and cash flow issues in winter months. We've paid many off on time over the years and stacked new ones along the way. Current monthly outlay is ~$92K against a remaining balance of roughly $480K, dropping weekly. Two loans wrap in the next week, which brings monthly debt service to ~$62K. Most of the rest pays off by end of October.
What we're looking for: a lender willing to pay off the existing MCAs with a term loan or LOC, drop our monthly outlay to the $25–30K range, and include modest working capital. The math is simple — replacing $92K/mo with $25–30K/mo on the same revenue base unlocks real cash flow. Owner credit is strong. Business is established.
The frustration: commercial lenders see the MCA stack and cite it as the reason to decline — even though eliminating it is the entire point. We understand the logic; it's still a closed loop with the banks we have spoken to at least.
Are there legitimate private lenders who actually work with restaurant groups in this position — meaning real consolidation, not another predatory roll-up?