Restaurant equipment financing approves at 600+ FICO with 6+ months operating history and $15K+ monthly revenue. Rates run 8-15% APR with 0-20% down; terms 3-7 years. Strong-brand kitchen equipment (Vulcan, Wolf, Hobart, True, Hoshizaki, Pitco) finances at A-tier rates because resale through dealer auctions is fast. Installation, hood/exhaust, and gas/electrical hookup typically roll in as soft costs.
Restaurant equipment financing is asset-backed lending for the line, the front of house, and the back office — ranges, fryers, refrigeration, dishwashers, POS, and hood systems. The credit boxes are tighter than for trucking or construction because restaurant default rates are higher and equipment depreciation is less linear, but specialty restaurant lenders accept the asset class with appropriate down payment and term. For broader product context see equipment financing; for industry context see restaurant business financing.
What Restaurant Equipment Finances
- Cooking line — ranges, ovens (convection, combi, deck), fryers, charbroilers, griddles, salamanders, steamers. Vulcan, Wolf, Pitco, Garland, Imperial, Rational.
- Refrigeration — walk-ins, reach-ins, prep tables, blast chillers, ice machines. True, Hoshizaki, Beverage-Air, Manitowoc.
- Dishwashing — under-counter, conveyor, flight-type. Hobart, Champion, Jackson, CMA.
- Prep equipment — mixers, slicers, food processors, dough sheeters. Hobart, Berkel, Robot Coupe.
- Hood & exhaust — Type I/II hoods, makeup air units, fire suppression. Often the largest single line item in a buildout.
- Beverage — espresso machines, soft-drink towers, draft systems. La Marzocco, Bunn, Curtis.
- POS & tech — terminals, KDS, printers, kiosks. Square, Toast, Clover hardware (not the SaaS subscription).
- Front of house — bar refrigeration, glass washers, espresso, ice wells.
Why Soft Costs Are Decisive
A $40K six-burner range with oven becomes a $55K-$65K all-in cost once you add the hood mod, the gas line work, the electrical, and the install crew. Lenders allow 10-25% in soft costs to be financed if they appear on the same invoice. If you let the dealer bill equipment and the contractor bill installation separately, the soft costs do not finance — they come out of working capital, and that is exactly when most new concepts run out of cash.
Always ask the equipment dealer to coordinate with the kitchen contractor and produce one combined invoice. The deal closes faster and you keep working capital free for the first 30-60 days of operations.
Rates and Down Payment by Profile
| Profile | FICO | Down | APR |
|---|---|---|---|
| Established (2+ yrs) | 700+ | 0-10% | 8-11% |
| Established (1-2 yrs) | 660+ | 5-15% | 10-13% |
| 6-12 months operating | 650+ | 15-20% | 12-16% |
| New concept | 680+ | 20-30% | 14-18% |
New Concept vs Second Location
A new concept — first restaurant, no operating history — faces tighter credit boxes. Specialty restaurant lenders will fund equipment for a new concept with a 680+ owner FICO, 20-30% down, and a strong package: signed lease, projections, build-out budget, sometimes an investor letter or a co-signer with established credit.
A second location for an existing operator is much easier. The existing restaurant’s bank statements carry the file; the new location finances on the operating company’s strength, often at established-operator rates even if the new location has no revenue yet. Multi-unit operators consolidate equipment financing across locations under one master credit relationship for the best pricing.
Restaurant Equipment Financing vs SBA
SBA 7(a) is popular for full restaurant build-outs because it covers the equipment, the leasehold improvements, the working capital, and sometimes a property purchase under one loan. The trade is speed: SBA closes in 6-10 weeks and restaurants often need equipment in 2-4 weeks for a target opening. Most operators use asset-based equipment financing for the equipment itself and either an SBA 7(a) or a working capital loan for the rest of the build-out.
Next Step
Equipment quote in hand? Get matched for restaurant equipment financing — one application to specialty restaurant lenders, terms back in 24-72 hours, funding to the dealer the same week.