Restaurant Equipment Financing

Commercial kitchens are expensive to build and expensive to keep running. A single combi oven, ice machine, or walk-in compressor can cost more than a month of profit, and when one fails on a Friday you don't have weeks to wait on a bank. Equipment financing spreads that cost over the years the equipment will actually earn for you.

What restaurant equipment can you finance?

How restaurant equipment financing works

You pick the equipment and get a quote from the vendor. The lender pays the vendor directly, and you repay the lender in fixed payments. Because the lender files a lien on the equipment, it can usually approve faster and with fewer documents than for an unsecured loan. When the loan is paid off, you own the equipment outright.

There's a catch that's specific to restaurants: used restaurant equipment floods the resale market every time a restaurant closes, so lenders know they'll recover far less than you paid if they ever have to repossess. That's why restaurant equipment lenders look hard at your time in business, sales, and credit, and why startups often see larger down payments.

Equipment loan, lease, or working capital?

For a deeper comparison, read equipment financing vs. leasing vs. working capital.

Used restaurant equipment financing

Used equipment can save 30%–50% and many lenders will finance it, usually with shorter terms (2–4 years) and sometimes an inspection or a vendor invoice showing condition. Avoid financing used refrigeration without a recent service report. Compressors are the most common surprise expense in a used kitchen.

Bad credit? You still have options

Because the equipment secures the deal, equipment financing is often easier to get with fair or challenged credit than unsecured loans. Expect a down payment, a shorter term, or a higher rate. Strong monthly card sales help a lot. See restaurant loans with bad credit.

Opening a new restaurant?

Startups face the toughest equipment approvals because there's no sales history. Read restaurant equipment financing for startups for what lenders want and how to structure it.

Tax benefits

Under current federal law, Section 179 lets businesses expense qualifying equipment in the year it's placed in service, up to an annual limit (about $2.56 million for 2026, phasing out above roughly $4.09 million in purchases), and 100% bonus depreciation is available for qualifying property acquired after January 19, 2025. Financed equipment can qualify. Your CPA can tell you what applies to your situation.

Commercial kitchen equipment financing

“Commercial kitchen equipment” covers more than the line. When you request a quote, list every piece separately so the lender can see what is removable equipment and what is a building improvement:

• Line equipment: ranges, char-broilers, fryers, combi ovens, salamanders, pizza and conveyor ovens
• Cold storage: walk-in boxes, condensing units, reach-ins, under-counter and prep refrigeration, ice machines
• Ventilation and fire safety: type I hoods, make-up air, suppression systems (often treated as leasehold improvements)
• Warewashing and prep: high- or low-temp dish machines, three-compartment sinks, mixers, slicers
• Smallwares: pans, utensils, and storage, usually better funded with working capital

Commissary kitchens, ghost kitchens, and catering operations finance the same categories. If you’re building a mobile kitchen, see food truck financing.

Approval requirements for restaurant equipment loans

Requirements differ by lender and by how new your restaurant is. In general:

For our core program you’ll need an operating restaurant open at least 30 days under your ownership, about $17,000+ in monthly sales, a credit score around 575 or higher, and your 3 most recent business bank statements. Opening soon? Read equipment financing for startups and our restaurant business plan template.

Example: what an equipment payment looks like

Illustration only, not an offer: replacing a walk-in compressor and two reach-ins for $40,000, financed over 24 months at an assumed 18% APR, works out to roughly $1,997 per month. The question to ask is whether the equipment earns or saves more than that. Think of the covers you lose when the walk-in is down, or the food you throw out. Run your own numbers.

When equipment fails mid-service: a quick checklist

1. Get a written repair-vs-replace estimate from your service company.
2. Ask for a replacement quote that separates equipment, delivery, removal, and installation.
3. Check whether a manufacturer or extended warranty applies.
4. If you’re replacing, compare energy-efficient models. They can lower utility bills on refrigeration that runs around the clock.
5. Send the quote and your 3 most recent bank statements to a lender the same day.

For our core program, approval can come the same day once we have your bank statements, and funding typically takes 3–7 business days. Timing isn’t guaranteed and depends on your file and the lender’s review.

What you'll need

• Vendor quote or invoice (equipment, delivery, installation listed separately)
• 3–6 months of business bank statements
• Time in business and ownership details
• Tax returns or financial statements for larger requests

General education, not legal, tax, or financial advice. Loan programs, licensing rules, and lender requirements change and vary by state. Disclosures.