Restaurant kitchen equipment financing covers the full kitchen — ventilation hoods ($5K–$30K), walk-in coolers ($5K–$25K), ranges and ovens ($3K–$25K each), prep stations, dishwashers ($5K–$20K), POS systems ($2K–$15K per station). A full new-restaurant kitchen typically runs $150K–$350K. Equipment loans run 8–15% APR with 36–84 month terms and 0–20% down at 600+ FICO, approved in 24–48 hours. For buildouts over $250K, SBA 7(a) at ~10% rate over 10 years is cheaper. Franchisees often access franchisor preferred lender programs with rates 1–2% below open-market.
A new restaurant's kitchen is one of the highest-ROI uses of equipment financing because the equipment generates revenue immediately upon opening. Paying cash on a $250K buildout when the same capital could fund six months of payroll is operationally fragile — most successful operators finance the kitchen and keep cash for working capital. This guide covers what financing looks like by kitchen component, how independent vs franchise restaurants finance differently, and when SBA programs beat conventional equipment loans. For the broader hub see equipment financing and restaurant business financing.
Kitchen Equipment Cost Ranges
| Equipment | New | Used (3–5 yr) |
|---|---|---|
| Ventilation hood & fire suppression | $5K–$30K | $2K–$15K |
| Walk-in cooler/freezer | $5K–$25K | $2.5K–$12K |
| Commercial range (6-burner) | $3K–$8K | $1.5K–$4K |
| Convection oven | $5K–$15K | $2K–$7K |
| Combi oven | $10K–$25K | $4K–$12K |
| Pizza oven (deck or conveyor) | $5K–$25K | $2K–$12K |
| Commercial dishwasher | $5K–$20K | $2K–$10K |
| Prep tables / stainless work surface | $300–$1.5K each | $150–$700 |
| POS system (per station) | $2K–$15K | $500–$5K |
A full quick-service restaurant kitchen runs $100K–$200K. Full-service kitchen $200K–$400K. High-end concept with combi ovens, hood-mounted fire suppression, and walk-in expansion: $400K–$700K+.
Equipment Loan vs SBA for Restaurant Kitchens
Equipment loan (most common under $250K)
- Rate: 8–15% APR
- Term: 36–84 months
- Down: 0–20%
- Close: 24–48 hours after approval
- Best for: Refresh or smaller buildouts where speed matters
SBA 7(a) for restaurant kitchen + working capital
- Rate: Prime + 2.5–3% (~10%)
- Term: 10 years on equipment
- Down: 10–15%
- Close: 30–60 days
- Best for: $250K+ buildouts; combined with working capital for opening expenses; restaurant acquisitions
SBA 504 if owning the building
- Use 504 for owner-occupied real estate, 7(a) for equipment + working capital. Common stack for restaurant acquisitions where the owner buys the building too.
Franchise vs Independent Restaurants
Franchise restaurants typically have it easier:
- Franchisor preferred lender programs — pre-negotiated rates 1–2% below open market. Most major QSR franchises (Subway, Dunkin', Jersey Mike's, Wingstop, etc.) have at least one preferred lender.
- Brand recognition reduces lender risk perception — even on a new location, lender treats the deal as a known concept.
- Standardized equipment lists — franchisor specs the equipment; lenders price predictably.
Independent restaurants face more scrutiny: business plan with revenue projections, market analysis, operator experience, and concept differentiation. Independents with 3+ years operating history qualify on revenue history alone. First-restaurant operators typically need 20% down plus strong personal financials.
Next Step
Get matched with restaurant-equipment specialty lenders and SBA Preferred Lender Banks. See also SBA loans to buy a restaurant and restaurant business financing.
A worked example: financing a restaurant kitchen
Take an independent restaurant outfitting a kitchen for $90,000 — hood and fire suppression, cooking line, refrigeration, and prep. Financed as an equipment loan at 12% APR over 60 months with 10% down, the payment lands near $1,803 a month. Most kitchen build-outs under about $250,000 go this route because an equipment loan funds fast and uses the equipment as collateral; larger or mixed-use projects that bundle equipment with build-out and working capital more often fit an SBA 7(a) with its lower rate and longer term. Buying some items used — refrigeration and stainless prep hold value well — can meaningfully shrink the financed amount.
Frequently Asked Questions
How do restaurants finance kitchen equipment?
Most use an equipment loan for build-outs under about $250,000, with the equipment as collateral; larger or mixed-use projects often use an SBA 7(a). Leasing and used equipment are also common ways to lower the cost.
Is it easier for a franchise or an independent to finance a kitchen?
Franchises usually have it easier — franchisor preferred-lender programs, proven unit economics, and brand recognition smooth approval. Independents can absolutely finance, but lean more on the owner’s credit and the business plan.
Can I finance used restaurant equipment?
Yes. Refrigeration, stainless prep tables, and many cooking items hold resale value and finance well used, which lowers the amount you borrow. Lenders want serialized equipment with clear value.
What credit score do I need to finance a restaurant kitchen?
Most equipment lenders want 600+, with 680+ earning the best rates. A larger down payment, used equipment, or a strong concept and projections can offset a thinner file.
Frequently Asked Questions
How much does restaurant kitchen equipment cost?
Restaurant kitchen equipment ranges from $10K for a single piece (commercial range, prep table) to $500K+ for a full kitchen buildout. Ventilation hoods $5K–$30K, walk-in coolers $5K–$25K, ranges $3K–$15K, ovens $5K–$25K, dishwashers $5K–$20K, POS systems $2K–$15K per station. A full new-restaurant kitchen typically runs $150K–$350K.
Can used restaurant equipment be financed?
Yes — most lenders finance used restaurant equipment up to 8–10 years old at the same rate as new, provided it comes with a 12-month warranty from a certified refurbisher. Direct private-party purchases (Craigslist, auctions) may require 20–25% down. Used equipment from major refurbishers (TundraFMP, KaTom, WebstaurantStore certified) finances normally.
What credit score do you need for restaurant kitchen equipment financing?
600+ FICO qualifies most established restaurants for equipment financing. 680+ gets best rates. New restaurant owners (under 6 months operating) typically need 680+ FICO plus 20% down. Existing restaurants opening a second location can leverage the first location's revenue history to qualify at lower personal FICO.
Should I finance kitchen equipment or include it in a SBA loan?
Depends on deal size. Equipment-only financing closes in 24–48 hours but costs more (8–15% APR). SBA 7(a) for $250K+ kitchen buildouts costs less (~10% APR) and runs 10-year term, but takes 30–60 days. Rule of thumb: if total equipment is over $250K and you can wait 30+ days, SBA. If you need to open the restaurant in 30 days, equipment financing.
Is restaurant equipment financing different for franchises?
Slightly — franchise restaurants often get better rates because lenders view franchise systems as lower risk (proven concept, training, ongoing support). Many franchisors have preferred lender programs with pre-negotiated rates for their franchisees. Always ask the franchisor first; you may get rates 1–2% better than open-market shopping.