Restaurant Funding With a Tax Lien

"The lien is why the bank said no"

You pulled your own report and saw it: a state or federal tax lien filed against the restaurant. Maybe it's a payroll tax balance from a slow stretch you're already paying down. Maybe it's a state sales-and-use lien from the year the second location didn't work. Either way, the bank saw it, the SBA lender saw it, and the "instant" online offers evaporated the moment the lien showed up on the search.

Here's the honest part most funders won't say out loud: a lien is not an automatic decline for us, but it's also not automatic approval. It's workable. What actually matters is whether your restaurant still deposits real money every week — because that's what we get repaid from, not the lien.

How it works with a lien on file

• 1. Apply online and send statements. Fill out the short application at /apply/ and attach your last 3–4 months of business bank statements. Tell us about the lien up front — amount, state or IRS, and whether you're on a payment plan. Being straight about it speeds things up; hiding it slows everything down.
• 2. We check the deposits and the lien's status. Soft pull only. We look at what you deposit, how consistent it is, and whether the lien is being handled. Depending on the size and who holds it, we may ask for the lien notice or a copy of your installment agreement.
• 3. You get a real answer. If the numbers support it, you get a specific offer — amount, cost, and payment — not a runaround. Working capital is unsecured; no collateral on your equipment or building.

Real numbers, and who actually qualifies

A real example: A taqueria carrying a $61,000 federal payroll tax lien — on a $900/month IRS installment plan — was declined by two banks purely on the lien. Their statements showed roughly $88,000/month in deposits across card and cash. Because the sales were real and the lien was documented and being paid, they were approved for $45,000 in working capital to cover a payroll gap and a walk-in cooler repair. The lien didn't kill it; the deposits carried it.

You've got a real shot with a lien on file if:

• Your restaurant has been open and depositing for at least 5–6 months
• Monthly deposits are consistent (roughly $12K+/month is a workable floor)
• FICO is 500 or higher — even if the lien is dragging your score down
• The lien is either on a payment plan, being resolved, or small relative to your revenue

Range: $10K–$500K for emergency and repair needs, $25K–$5M for growth once the lien is under control. Funded in as little as 24 hours. The bigger and fresher the lien, the more it depends on your deposits doing the talking.

Straight answers

Can I get funding if I have an IRS tax lien?

Often, yes — it's workable, not guaranteed. A federal lien with strong, steady deposits and a payment plan gets approved regularly. A fresh six-figure lien on thin sales is harder. We'll tell you honestly which one you are after we see the statements.

Does the lien have to be paid off first?

No. You don't need the lien cleared to apply. A documented IRS or state installment agreement actually helps — it shows the balance is being handled, not ignored.

Will checking hurt my credit?

No. It's a soft pull to see if you qualify. No hard inquiry, no extra ding on a score the lien may have already lowered.

State tax lien vs. federal — does it matter?

Both are workable. What matters more is the size relative to your revenue and whether it's being paid. Send us the lien notice with your statements so we're working with real facts, not guesses.

How fast can I get funded?

If you apply and get your statements in before early afternoon ET on a weekday and everything's signed, same-day funding is on the table. Apply Friday afternoon and it typically lands Monday.

What if I got denied everywhere else because of the lien?

That's exactly the situation this is built for. Banks decline on the lien; we decide on the deposits. A stack of declines doesn't change what your restaurant brings in every week.

Get a straight answer on your lien

Stop collecting declines. Send your last few months of statements, tell us where the lien stands, and get a real yes-or-no based on what your restaurant actually deposits. Apply online — soft pull, no phone tag, and an honest answer either way.