How we can help
Our fast program funds restaurants that have been open at least 30 days. Pre-opening, an SBA loan or a startup equipment program is usually the right route. After opening, we can fund equipment quickly.
Check if my restaurant qualifies →Key takeaways
- Without sales history, approval rests on your personal credit, restaurant experience, and how much of your own money is in the project.
- Bundling equipment into an SBA 7(a) startup loan often gets the longest terms and lowest payments.
- Buying a mix of new (refrigeration, cooking line) and quality used (tables, smallwares, shelving) can cut your opening budget sharply.
Market overview
- Common sources
- SBA 7(a), equipment lenders, vendor programs, leases
- Down payment
- Often 10%–30% for startups
- Key factors
- Personal credit, industry experience, capital
- Typical terms
- 2–7 years (up to 10 with SBA)
Typical market ranges, not offers.
Why startup equipment financing is harder
An equipment lender's two questions are: can you make the payments, and what can we recover if you don't? A startup can't answer the first with history, and restaurant equipment doesn't resell well, so lenders lean on you personally: your credit score, your experience running a kitchen or a restaurant, and your own cash in the deal.
Your financing options as a new restaurant
| Option | Good for | Watch for |
|---|---|---|
| SBA 7(a) loan | Equipment, build-out, and working capital in one long-term loan | Takes weeks to months; requires a strong business plan and equity |
| Equipment lender (startup program) | Kitchen packages when you have good personal credit | Larger down payments and higher rates than for established restaurants |
| Vendor / manufacturer financing | Specific brands or packages, sometimes promotional rates | Compare the total cost, not just the monthly payment |
| Lease (FMV or $1 buyout) | POS, dish machines, ice machines, tech | Total lease cost can exceed buying |
| Landlord tenant-improvement allowance | Hoods, plumbing, electrical, and other build-out | Usually means higher rent or a longer lease |
What lenders want from a new restaurant
- Personal credit, ideally 650+ for the best startup programs
- Restaurant management or ownership experience (or a partner/GM who has it)
- A business plan with realistic sales projections and a build-out budget
- Your own capital in the project, often 10%–30%
- A signed lease or LOI and itemized equipment quotes
Stretch your opening budget
- Buy new where failure is expensive: refrigeration, the cooking line, and anything health inspectors scrutinize
- Buy used where it's cosmetic: stainless tables, shelving, smallwares, dining furniture
- Lease technology: POS hardware and kiosks age fast
- Negotiate the hood with your landlord: ventilation is often a fixture that stays with the building
- Keep 3–6 months of working capital: new restaurants rarely hit projected sales on day one
Expert tip
Taking over a space that was already a restaurant (a “second-generation” space) can save tens of thousands on hoods, grease traps, and walk-ins, but have every piece of inherited equipment inspected before you count it in your budget.
Ready to plan the whole opening budget? See restaurant startup loans and how to finance a restaurant.
Frequently asked questions
Can a new restaurant get equipment financing?
Is an SBA loan good for startup restaurant equipment?
Sources
We cite primary sources: federal agencies, regulations, and official program rules. Rules vary by state and change over time.
General education, not legal, tax, or financial advice. Loan programs, licensing rules, and lender requirements change and vary by state. Disclosures.