Outfitting a kitchen is one of the biggest checks you write when opening or upgrading a restaurant, and very few operators pay cash for all of it. The good news is that ranges, hoods, walk-ins, and dish machines make excellent loan collateral — the gear itself secures the debt, which is why financing a fryer is usually easier than getting an unsecured loan for the same amount. Broadly, you have five paths: dealer or manufacturer financing, a dedicated equipment finance company, a bank or credit union loan, an SBA-backed loan, and a business line of credit. Leasing sits alongside these as a way to spread payments without taking ownership up front. Before you shop, size the whole project with our cost-to-open calculator and the restaurant startup cost checklist so you know how much you actually need to borrow.
There is no single “best” source. The right fit depends on how long you have been in business, your credit, how fast you need the gear, and whether you want to own it outright. Roughly:
| Source | Typical APR | Speed | Best when |
|---|---|---|---|
| Dealer / manufacturer | 0% promos to ~20%+ | Fast (at checkout) | Buying gear now, convenient bundling |
| Equipment finance company | ~8–18% (good credit) | 24–72 hrs | Startups, thinner credit, speed |
| Bank / credit union | ~6–12% | Slow (weeks) | Strong credit, existing relationship |
| SBA 7(a) / 504 | ~ prime + a few pts / low-fixed | Slow (45–90 days) | Large projects, longest terms |
| Line of credit | Variable, often 10%+ | Fast once open | Many small purchases over time |
For a deeper side-by-side of every lender type, see where to get restaurant equipment financing, and for the big picture beyond gear, our restaurant financing options overview.
Dealer financing is the offer you see at the bottom of a supplier’s cart — sometimes a genuine 0% APR promo, sometimes a marked-up rate through a referral partner that pays the dealer a fee. It is convenient, but always compare it against one outside quote. Equipment finance companies specialize in exactly this: they look at your revenue and the collateral value of the machine more than a pristine credit file, so they approve startups and thinner-credit borrowers that a bank would decline, and they fund fast. Banks and credit unions offer the lowest conventional rates but move slowly and prefer established businesses with two-plus years of books. If you already bank somewhere, start there — the relationship can smooth approval.
SBA loans are bank loans the government partially guarantees, which lowers lender risk and stretches terms. A 7(a) is the flexible workhorse (equipment, build-out, working capital); a 504 targets major fixed assets and real estate with long, low fixed rates. They carry the best terms but the most paperwork and the longest wait — read SBA loans for restaurants for the full 7(a)-vs-504 breakdown. A business line of credit is not tied to one machine; it is a revolving reserve you draw on as needed, which suits operators buying several small pieces over months. Whatever you choose, model the monthly payment first with our equipment loan calculator.
Credit thresholds vary widely by lender type. Traditional banks often want a 680+ score; specialized equipment lenders routinely work with scores in the low-600s, and some go lower when the collateral and cash flow are strong. Expect lenders to ask for personal and business credit, time in business (many prefer 6–12 months, though startup programs exist), recent bank statements, tax returns, and a quote or invoice for the equipment. A down payment of 10–20% is common and lowers your rate; strong personal credit and industry experience matter most when the business itself is new. If your score is a problem, see financing with bad credit.
Restaurant equipment financing commonly runs terms of 24–84 months with rates that depend heavily on credit: think roughly 8–15% APR for strong credit and 15–22%+ for average or rebuilding credit, with SBA and bank money at the low end and revenue-based products far higher. Watch the total cost of ownership, not just the monthly payment — a longer term feels cheaper each month but costs more overall, and energy and repairs matter too. Compare the lifetime picture with our equipment TCO calculator. Financing also unlocks a real tax benefit: the Section 179 deduction lets you write off qualifying equipment in year one even when you financed it — estimate the savings with the Section 179 calculator.
Financing to own suits durable gear you will keep for a decade — ranges, hoods, tables. Leasing can win for fast-obsolescing or high-repair items and preserves cash, though you may pay more over time; weigh it with our lease-vs-buy calculator and the leasing-vs-buying guide. Stretching a tight budget? Buying used equipment can cut the amount you finance by a third or more — just confirm it meets your local code requirements and the overall opening budget before you commit.
This guide is general education, not financial, tax, or legal advice. Rates, terms, credit thresholds, and tax rules change and vary by lender, equipment type, state, and your business profile — confirm specifics with a licensed lender, leasing company, or accountant before you sign.