A quick business funding process that offers same day business loans for business owners.
The neighborhood bakery and coffee shop is often the heart of a neighborhood. The smell of freshly-baked bread wafts down the street, enticing passersby. People come in for a croissant and chat about the weather. Kids buy a cookie on their way home from school, and you bake their birthday cake every year.
Whether you started your bakery out of a love of baking, inherited it from a parent, or simply saw a need to fill, running a successful business requires one cup of passion mixed with one cup of business savvy. Adding the skills of running a business to your recipe book will help you launch, run, and grow your bakery.
In order to grow any business you need money. If you want to grow or expand your business we can help you get the money you need. Apply online in just a few clicks to see how much money is available for your growth campaign.
What Do I Need to Qualify?
Below is a list of the general requirements to get approved for business funding with our basic program.
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at:
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It can take a while for a new business to break even, or for sales to grow enough to cover all your start-up costs. During this time, you will need working capital to stay afloat.
Working capital is the revenue that you can use to cover day to day operations such as rent, utilities, and payroll. It’s calculated by subtracting your current liabilities from your current assets on your Balance Sheet. If you are struggling to produce enough working capital to pay your current liabilities, consider applying for a working capital loan.
Working capital loans typically have terms from one to three years, so they are ideal for covering cash flow issues while just getting started. Alternative lenders offer working capital loans to businesses after two months of revenues, which is much less than the several years in operation that most banks require. They will also look at your credit score and require minimum monthly revenues of $10,000.
Loans that are outstanding for a longer period increase the lender’s risk of nonpayment. Therefore, Shield Lending requires a minimum credit score of 650 for their working capital loans.
Interest rates vary, but with an alternative lender, you can expect to pay between 9% to 45%. The interest rate you are charged reflects your risk, so raising either your credit score or revenues or both, will lead to a lower rate.
Ovens, stand mixers, commercial refrigerators, and more, a bakery requires several large pieces of equipment. Equipment financing loans can help you buy everything you need behind the counter.
The equipment purchased with an equipment financing loan serves as the loan’s collateral. Therefore, you do not need a perfect credit score to qualify for a loan. If you have a lower credit score, the lender may require you to put a down payment on your new oven, but the interest rate you pay will likely be lower than for an unsecured loan.
With an unsecured loan, the lender has no recourse if you default. With equipment financing loans, the lender can seize and resell the equipment to recoup their losses. Consider how this could impact your business when applying for a loan.
When you apply, the lender will want information on the equipment’s age, condition, and value. They could require an independent appraisal, which will delay the loan’s funding. Take advantage of the common 90-day grace period before you have to start making payments to grow your business. Typical terms on equipment financing loans last from three to five years, to align with its depreciation schedule.
Banks who offer small business loans will not lend unless you have been in business for over two years, can show steady cash flows and growth, and have an excellent credit score. Their stringent lending requirements made it difficult to impossible for many qualified borrowers to access capital. Alternative lenders stepped in to fill the market need.
Alternative lenders grant bad credit business loans to borrowers who cannot qualify for loans at a bank. Your inability to qualify could be for many reasons, from your time in business to your monthly revenues to your credit score. Shield Funding lends to borrowers with credit scores as low as 500. Bad credit business loans have higher interest rates, between 12% to 45%, because of their higher risk. You can take out a loan for a term of 2 to 18 months.
If you only needed a small amount of capital to cover rent or payroll, you can borrow as little as $5,000. They are a great option if you need cash in a hurry, too, as most loans can be approved and funded in less than a week.
A merchant cash advance or MCA only suits your business if you do a large volume in credit card sales. When you take out an MCA, you are borrowing against your future sales. The lender is repaid from those future sales.
When you apply for an MCA, the underwriter will ask you to provide several months of credit card or bank statements. They will use these to calculate your average cash inflow and to determine how much money you have coming into your bakery and how often. How much you can borrow will be based on a percentage of these sales.
An MCA is repaid every time you swipe a credit card. The lender takes their percentage of the sale. This percentage includes their principal and profit. They will deduct from every future sale you swipe until fully repaid.
As noted above in the section on equipment financing, one way that lenders minimize their risk is by requiring that you pledge collateral to secure your loan. Collateral can be assets such as a delivery truck, your commercial refrigerator, a business savings account, or investment and retirement accounts.
While this reduces a lender’s risk, it increases a borrower’s risk. Anything that you pledge could be seized if you default on your loan. If a lender seizes your refrigerator, it could be difficult to impossible to stay in business. If you do not have collateral to pledge, i.e., you already have loans on your equipment, or do not want to risk it, apply for an unsecured business loan.
Unsecured business loans will cost you more. Interest rates of 9% to 45% reflect the lender’s increased risk. You must have been in business for one year and have monthly revenues should meet or exceed $10,000 to qualify. At Shield Funding, borrowers can have a credit score as low as 500.
Apply Directly to One Source!
Work with a direct lender and get a business loan as fast as the same day. Shield Funding offers competitive rates and terms on all it’s funding programs. Apply now with a trusted lender that has been helping business owners secure working capital for almost two decades.
Kiva U.S. is a nonprofit organization that offers 0% interest, no-fee microloans up to $15,000 to small business owners who often face barriers accessing traditional financing—especially those with poor or limited credit history. Unlike conventional lenders, Kiva relies on a social underwriting model, which means borrowers raise credibility through endorsements from their community and peers. After an initial private fundraising period among personal connections, your loan request is made public on Kiva’s global platform for crowdfunding by individual lenders. Because there’s no interest and no hidden fees, Kiva loans are among the most affordable financing options available. While the approval process may take a bit longer than same-day loans, the benefit of zero-cost financing can be a game changer for entrepreneurs trying to get back on track. Kiva is especially well-suited for startups, sole proprietors, and community-driven businesses that need small amounts of capital to grow.
Accion Opportunity Fund (AOF) is one of the nation’s largest nonprofit lenders focused on serving underserved small business owners, including minorities, women, and those with low credit scores. They offer flexible loan options ranging from $5,000 to $250,000 with fair interest rates and terms designed to support business growth and sustainability. AOF looks beyond credit scores by assessing the overall strength of your business, cash flow, and plans for the loan. In addition to financing, AOF provides free access to business coaching, legal support, and financial education resources—all tailored to help you succeed. Their inclusive approach makes them a preferred lender for entrepreneurs who may not be a fit for traditional banks. If your credit history includes late payments, limited credit use, or past financial challenges, AOF may still be able to offer the funding and support you need to move forward.
The Hebrew Free Loan Society (HFLS) offers interest-free small business loans to residents of NYC, Westchester, and Long Island, making it a great option for entrepreneurs with bad credit. Loan amounts typically range from $7,500 to $50,000 and can be used for working capital, inventory, equipment, or leasehold improvements. HFLS focuses more on your business plan and repayment ability than your credit score, requiring two guarantors instead of collateral. With no interest or fees and repayment terms of up to 36 months, HFLS loans provide an affordable, supportive way for business owners to access funding and grow their operations.
Technology Credit Union is a member-focused financial institution that offers a range of business financing products, including SBA 7(a) loans, commercial loans, and equipment financing. As an SBA preferred lender, Technology Credit Union can expedite the SBA loan process, making it easier for bakery owners to access government-backed funding for startup costs, expansion, or equipment purchases. Membership is open nationwide with a modest deposit and a nominal annual fee through the Financial Fitness Association, making their services accessible to a broad base of entrepreneurs. Technology Credit Union is known for its personalized service, competitive rates, and willingness to work with both established businesses and startups, making it a strong choice for bakery owners who want a relationship-driven approach to business banking.
Elevations Credit Union, based in Colorado, specializes in providing small business financing with a local and community-oriented focus. They offer term loans, SBA 504 loans, and equipment financing, all tailored to help bakeries and other small businesses grow. Elevations Credit Union participates in SBA lending, which provides bakery owners with access to favorable terms, low down payments, and extended repayment periods for major assets or expansion. The credit union is known for its personalized member service, competitive interest rates, and commitment to supporting local businesses. For bakery owners in Colorado or those eligible for membership, Elevations Credit Union is an excellent option for both traditional and SBA-backed business loans.
Empire State Development (ESD) offers a variety of funds, loans, grants, and other financial incentives to encourage business growth in New York State. These programs are designed to support businesses at different stages, from startups to manufacturers.
Bakery business loans are tailored financing solutions designed specifically for bakery owners who need fast access to capital to support daily operations or invest in growth. Whether you’re purchasing ingredients in bulk, upgrading baking equipment, covering payroll, or expanding into a new location, these loans offer flexible funding with no restrictions on how the money is used. Loan amounts typically range from \$10,000 to \$1 million, and most options are unsecured—meaning you won’t need to provide collateral. If you have a credit score of 650 or higher and a solid business history, you may qualify for some of the most competitive rates and terms available.
For bakery owners with less-than-perfect credit, we offer alternative financing options that don’t rely heavily on credit scores. If you’ve been turned down by a bank, our merchant cash advance can be a great option, providing access to funding based on your daily sales—ideal for bakeries with steady transactions. And for those who don’t process card payments, our bad credit business loans can still deliver the same fast, flexible funding. No matter your credit profile, we’re committed to helping bakery businesses thrive with the capital they need—when they need it.
Bakery business loans provide accessible, versatile funding to support the day-to-day operations and long-term growth of your bakery. One of the most common uses is purchasing inventory—whether it’s ingredients, packaging, or disposable supplies—especially ahead of busy seasons or promotional events when bulk purchasing can lead to major cost savings. These loans can also help you hire or retain skilled staff, ensuring you’re fully staffed during high-demand periods like holidays or weekends.
Beyond everyday operations, bakery business loans are ideal for upgrading equipment such as ovens, mixers, or display cases, which can improve efficiency and product quality. You can also use the funds to launch or boost marketing efforts—like promoting seasonal specials, running social media ads, or redesigning your website to attract more local customers. If you’re planning to renovate your shop, expand to a second location, or simply need extra capital to manage cash flow gaps, a bakery business loan gives you the speed and flexibility to act on those needs right away. Whether you’re stabilizing your operations or preparing for growth, this funding helps your bakery stay competitive and ready to meet customer demand.
Before taking out a bakery business loan, it’s essential to assess how much you can realistically afford to borrow and repay. Start by reviewing your monthly revenue, fixed costs like rent and payroll, and your average profit margins to determine a comfortable payment range. Many bakery loans offer flexible terms, but if you’re considering short-term financing, keep in mind that these may come with higher rates and more frequent payment schedules. Be sure to calculate the total cost of the loan—including interest and any additional fees—to understand its full impact on your budget. Borrowing more than your business can handle may create unnecessary financial pressure, especially during slower seasons. A bakery loan should support your operations, not disrupt them, so make sure the loan amount and repayment terms align with your cash flow and business goals.
When applying for a bakery business loan, it’s important to clearly define why you need the funds and how they’ll be used to benefit your operation. Whether you’re stocking up on ingredients for a busy season, replacing worn-out baking equipment, hiring additional staff, or launching a marketing campaign to boost foot traffic, having a specific purpose helps guide your borrowing decisions. You might also need funding to cover temporary cash flow gaps, handle unexpected repairs, or take advantage of a timely opportunity like a discounted equipment purchase or a new storefront lease. Knowing exactly what you need the loan for allows you to request the right amount, select a repayment term that fits your cash flow, and avoid unnecessary debt. A clear funding strategy ensures the loan directly supports your business goals and contributes to the long-term success of your bakery.
When applying for a bakery business loan, it’s important to clearly define why you need the funds and how they’ll be used to benefit your operation. Whether you’re stocking up on ingredients for a busy season, replacing worn-out baking equipment, hiring additional staff, or launching a marketing campaign to boost foot traffic, having a specific purpose helps guide your borrowing decisions. You might also need funding to cover temporary cash flow gaps, handle unexpected repairs, or take advantage of a timely opportunity like a discounted equipment purchase or a new storefront lease. Knowing exactly what you need the loan for allows you to request the right amount, select a repayment term that fits your cash flow, and avoid unnecessary debt. A clear funding strategy ensures the loan directly supports your business goals and contributes to the long-term success of your bakery.
Several key factors influence whether you qualify for a bakery business loan, especially when applying for same-day funding. While your credit score is considered, it often carries less weight than it would with a traditional bank loan. Lenders are more interested in how your bakery is performing right now—looking closely at your monthly revenue, cash flow, business bank statements, and how long you’ve been operating. They also take into account the stability of your income, which can be affected by seasonal trends common in the bakery industry. If your bakery shows consistent sales and responsible financial management, you’re more likely to be approved—even with a lower credit score. Lenders want to see that your business is financially active and capable of handling regular repayments. Because same-day loans are designed for speed, they rely on a strong, real-time view of your business health to make fast, informed decisions.
The amount you can qualify for with a bakery business loan is primarily determined by your monthly revenue and the consistency of your business bank deposits. Most lenders typically approve up to 70% or more of your average monthly deposits, depending on the strength of your cash flow and financial history. For example, if your bakery regularly deposits \$40,000 a month, you could be eligible for a loan of around \$28,000 or more. Lenders will evaluate your deposit activity, the number of days with negative balances, and overall business stability to gauge how much you can responsibly repay. The more consistent and healthy your revenue, the higher your approval amount is likely to be. Having organized financial records and steady income puts you in a stronger position to qualify for larger loan amounts—giving your bakery the capital it needs to grow or manage day-to-day operations.
With a bakery business loan, repayment typically starts soon after funding and is handled through automatic withdrawals from your business bank account, either daily or weekly. If you’re on a daily repayment schedule, payments are usually deducted Monday through Friday, excluding weekends and holidays. For weekly plans, a single fixed payment is withdrawn once a week on the same day. This system helps break down the total loan into smaller, manageable amounts, making it easier to stay on top of your obligations without disrupting your bakery’s cash flow. Because many bakeries have steady daily sales, this repayment structure is well-suited to align with your income cycle. It’s a predictable and streamlined way to repay your loan while staying focused on running your business.
The cost of a bakery business loan is mainly determined by the factor rate and the repayment term you choose. A factor rate is a fixed number applied to the loan amount to calculate the total cost—so if you borrow $30,000 with a factor rate of 1.20, you’ll repay $36,000 over the term of the loan, with $6,000 representing the financing cost. Unlike traditional interest rates that accrue over time, factor rates are set upfront, giving you a clear understanding of your total repayment from the beginning. Your payment frequency—whether daily or weekly—will dictate how that amount is spread out, helping you manage your cash flow. While bakery business loans offer fast access to capital, it’s important to factor in the full repayment amount to ensure it fits your budget and supports your business goals. This structure gives you transparency and predictability, so you can plan your finances with confidence.
This is likely one of the most important benchmarks you will use to compare lending options. If one lender offers a better interest rate than the other and all other things remain the same you can have a good idea of the rate comparison. You must keep in mind that different products such as credit cards or car loans work using traditional financing interest rates and APR, but many alternative funding programs quote in a factor rate or annualized interest rates so try to compare options based on the types of loans they are most similar to. And ultimately it will come down to what you have to pay back when all is said and done.
When comparing lending options, whether quoted in factor rates, interest rates, or any other framework, what is most important is what you will pay back when all is said and done. For this reason you should always try to look at what you will pay over the entire life of the loan.
