How a Multi-Restaurant Operator Pulled $675K Cash-Out to Fund a New Location and Pay Off MCA Debt
Sources: Small-Balance Commercial Refinance — PeerSense, Asset-Based Lending Hub
How did PeerSense solve this scenario?
New location funded + MCAs paid off + 24-mo runway. A regional restaurant operator with four concepts across multiple Southeast markets. PeerSense placed the deal into asset-based bridge cash-out with conservative leverage, asset-based underwriting, and fast execution. Composite case study based on the deals we close every month.
— PeerSense Composite Case Study · 2026-05-01
At a glance
| Loan size | $675K cash-out refinance |
| Property type | Owner-occupied restaurant building |
| LTV | 45% |
| Term | 24-month bridge |
| Rate | Interest-only, low-double-digit range |
| Use of proceeds | New location launch + MCA payoff |
| Borrower | Multi-concept restaurateur (4+ locations) |
The borrower
A regional restaurant operator with four concepts across multiple Southeast markets. Two casual-dining brands, one bar, and one quick-service location. Each concept ran under its own LLC. The operator owned the real estate under one of his older locations free-and-clear after a decade of ownership.
He'd identified a fifth location in a growing secondary market — a former bank branch with a great parking lot and the right zoning. To get it built out and open, he needed working capital. He also wanted to retire two merchant cash advances that were eating his margins at his other locations.
Why traditional financing said no
The structural problem: his businesses were profitable, but his personal tax returns showed aggressive write-offs across multiple LLCs, and his bank wanted clean, simple income documentation tied to one entity. They also wanted to count the MCA payments against his DTI — even though he was about to pay them off with the proceeds. SBA financing would've worked eventually, but the timeline didn't fit: he had a buildout window he couldn't extend.
How PeerSense solved it
We placed the deal into a 24-month interest-only bridge at 45% LTV against the appraised value of his free-and-clear restaurant building. Conservative leverage, asset-based underwriting, fast close.
The structure:
- 45% LTV — well within the lender's comfort zone given the borrower's complex financials
- Cash-out refinance of the previously free-and-clear property
- 24-month interest-only term — long enough to build out, open, and stabilize the new location
- Use of proceeds:
- - ~$220K — new location buildout (FF&E, leasehold improvements, working capital)
- - ~$310K — MCA payoff across two existing locations
- - ~$145K — operating reserve / unrestricted working capital
Underwriting was based on: - Property appraisal (the heart of the underwrite) - Bank statements showing revenue across his entities - Lease documentation on the new location
What was NOT the deciding factor: - Personal tax returns - DTI ratio - DSCR test on the existing property
The outcome
- New location opened in month 5
- MCAs paid off at close — restored margins on the two affected locations immediately
- Working capital cushion carried him through the new location's ramp-up
- Exit plan: SBA 7(a) refinance once the new location seasons (target: month 18-24)
Frequently asked questions
Can I get a cash-out loan against my restaurant building?+
Yes. Owner-occupied commercial real estate — including restaurant buildings — qualifies for asset-based cash-out refinance programs that underwrite to the appraised value of the property rather than the operating business.
What LTV can a restaurant owner expect on a cash-out refinance?+
Typically 45-65% LTV depending on borrower profile, property condition, and market. Conservative leverage allows for asset-based underwriting that doesn't require clean tax returns or DSCR documentation on the operating business.
How fast can a restaurant cash-out refinance close?+
Most asset-based commercial cash-out refinances close in 21-45 days. With a clean appraisal and title, 30 days is typical.
Can I use cash-out proceeds to pay off merchant cash advances?+
Yes. MCA consolidation is one of the most common use-of-proceeds for these loans. Replacing 30%+ APR MCA debt with low-double-digit bridge debt typically improves cash flow immediately.
Will the lender count my MCA payments against me?+
Most asset-based bridge programs don't run a personal DTI calculation, so MCA payments aren't disqualifying. Some programs will require evidence that the MCAs are being paid off at close.
Can I keep my restaurants under separate LLCs?+
Yes. Multi-LLC structures are common in F&B and don't disqualify you from asset-based cash-out programs.
What's the typical exit strategy?+
Most borrowers exit into SBA 7(a) or 504 financing, which offers longer amortization and lower rates but requires more documentation and a longer underwriting timeline. The bridge buys you the time to build that documentation. ---
Have a similar scenario?
Composite case studies based on the deals we close every month. PeerSense routes to the right program + lender.
Composite case study. Names, locations, identifying details, and dollar amounts modified to protect borrower privacy. Actual rates and terms vary by borrower, property, and market conditions. PeerSense is a capital advisory firm and does not directly originate loans.