Restaurant equipment financing includes equipment loans, leases, manufacturer financing, SBA-backed loans, and alternative sources. Compare total cost, warranty and service coverage, and cash-flow impact. Prepare projections and consult a CPA or financial advisor to choose the option that matches your operational needs.

Starting a restaurant means planning the menu, the layout, staff, and - critically - the equipment. Commercial ranges, refrigeration, prep stations, and dishwashers are essential and often represent one of the largest up-front costs. Financing equipment is common and can keep your cash reserves available for operations and marketing.

Main financing options

Equipment loans

Banks and specialty lenders offer equipment loans that let you buy the asset outright. The equipment typically serves as collateral. Loan terms, down payments, and rates vary by lender and the borrower's credit.

Equipment leases

Leasing spreads cost over time and can require little or no down payment. Operating leases let you upgrade at the end of the term; capital leases behave more like purchases. Leasing can help preserve cash but may cost more over the long run.

Manufacturer (OEM) financing

Some equipment manufacturers or dealers offer in-house financing or promotional deals. These can be convenient, and manufacturers often understand service and warranty implications better than third-party lenders.

SBA-backed loans and small-business lines of credit

U.S. Small Business Administration (SBA) loan programs are still a common path for restaurants needing larger loans or favorable terms. A business line of credit can also handle seasonal swings and smaller purchases.

Alternative options and cautions

Merchant cash advances and high-cost short-term products exist, but they can carry steep fees and daily repayment structures that squeeze cash flow. Crowdfunding, equipment consignment, or buying used equipment reduce capital needs but require diligence on condition and serviceability.

Assess total cost and operational needs

Compare APR, total interest paid, fees, and required down payment or deposits. Factor in maintenance, warranty, installation, and energy costs - older or poorly maintained equipment can increase operating expenses.

Tax and accounting considerations

Tax rules can affect whether to lease or buy. U.S. businesses may be eligible for accelerated depreciation or expensing of equipment under current tax rules; consult a CPA to understand the implications for your tax year and state rules.

Practical steps before you borrow

  1. Prepare realistic sales and cash-flow projections. Lenders want to see a plan.
  1. Get multiple quotes for the same equipment and compare financing offers.
  1. Check service contracts and local technician availability.
  1. Discuss terms with a financial advisor or CPA.
Financing equipment is usually a necessary step for new restaurants. Choose the structure that preserves working capital, matches equipment life, and minimizes long-term cost while supporting reliable operations.

FAQs about Restaurant Equipment Financing

Should I lease or buy kitchen equipment?
Leasing preserves cash and can simplify upgrades, while buying builds equity and may offer tax benefits. Compare total cost, equipment life, and service needs before deciding.
Can I use SBA loans to buy restaurant equipment?
Yes. SBA-backed loans are commonly used for equipment purchases and can offer competitive terms, but eligibility and documentation requirements vary.
Are manufacturer financing deals a good choice?
Manufacturer financing can be convenient and aligned with service coverage, but always compare the effective cost and terms with banks and leasing companies.
What should I bring to lenders when applying?
Prepare detailed cash-flow projections, equipment quotes, business and personal credit information, and information about warranties and service plans.

News about Restaurant Equipment Financing

Best Restaurant Equipment Financing Options Of 2025 - Forbes [Visit Site | Read More]

Chef’s Deal Restaurant Equipment Announces New Flexible Financing Programs for Foodservice Industry - Yahoo Finance [Visit Site | Read More]

Food Truck Loans: How to Finance Your Business & Hit the Road in 2025 - Toast POS [Visit Site | Read More]

Free Grants and Programs for Small Business - U.S. Chamber of Commerce [Visit Site | Read More]

Equipment Leasing: What It Is and How It Works - NerdWallet [Visit Site | Read More]

Bad Credit Business Loans Surge in 2025 as ROK Financial Expands Alternative Financing Programs Nationwide - GlobeNewswire [Visit Site | Read More]

Why Building Business Credit Should Be a Priority for Your Restaurant - Modern Restaurant Management [Visit Site | Read More]

Best equipment financing options of 2025 - CNBC [Visit Site | Read More]