What restaurant equipment can be financed?
Most durable equipment with a clear vendor quote can be financed: cooking lines, refrigeration, ice machines, dish machines, prep equipment, hoods and ventilation, POS hardware and some furniture. Used equipment is often possible too, though some funders prefer new or dealer-certified pieces. Consumables such as food, smallwares and paper goods usually are not covered.
- Cooking line: ranges, char-broilers, fryers, combi and convection ovens, pizza ovens.
- Cold side: walk-in coolers and freezers, reach-ins, prep tables, ice machines.
- Back of house: dish machines, mixers, slicers, water filtration.
- Front of house: POS terminals, kitchen display screens, self-order kiosks, booths and seating in some cases.
A food truck build or a trailer kitchen can also qualify; see our food truck funding page.
Should a restaurant finance or lease equipment?
Finance when you plan to keep the equipment for most of its useful life, and lease when you expect to upgrade or want lower payments with an option at the end. Financing builds ownership. Leases can include end-of-term buy options that change the total cost. Tax treatment differs, so ask your CPA which structure fits your situation.
A good rule of thumb: a walk-in cooler or a hood system you will run for many years usually suits financing. POS hardware and kitchen screens that go out of date faster often suit a lease or a shorter term.
Whatever the structure, read the end-of-term language. A lease that looks cheaper per month can cost more if the final purchase option is high.
| Question | Equipment financing | Equipment lease |
|---|---|---|
| Who owns it during the term? | You, with a lien until paid | The lessor |
| Best for | Long-lived kitchen equipment | Tech that goes out of date |
| End of term | You own it outright | Return, renew or buy |
| Monthly payment | Based on full cost and term | Often lower, depends on end option |
How is equipment financing different from working capital?
Equipment financing is tied to a specific asset and usually runs longer, so payments are smaller relative to the amount. Working capital is unsecured by a specific item and runs shorter. Using short-term money for a long-lived oven squeezes monthly cash. Matching the term to how long the equipment lasts keeps payments manageable.
If the need is a mix, such as a new fryer plus the week of lost sales while it is installed, owners sometimes pair equipment financing with a smaller amount of restaurant working capital. Our article on types of restaurant funding compares every option side by side.
When should a restaurant replace equipment instead of repairing it?
Replace when repair bills are recurring, when downtime is costing covers, or when energy and water use are well above a newer model's. A compressor that fails every summer or a fryer that recovers temperature slowly during the rush often costs more in lost sales and waste than a monthly payment. Get a replacement quote before the next breakdown.
Owners who wait until equipment dies usually buy under pressure, with fewer quotes and a rush install. Planning a replacement during a slower month gives time to compare vendors and schedule the install around service.
What do funders need for restaurant equipment financing?
Most funders want a vendor quote or invoice, basic business details, recent bank statements and owner information. Requirements vary by product and funder; many look at time in business, monthly revenue and credit. Newer restaurants may still find options because the equipment secures the deal, though terms can be shorter or require a larger down payment.
For a new opening, see funding options for first-time restaurant owners. For established operators, the how it works page shows the steps.
What you’ll typically need
- Vendor quote or invoice with model numbers
- Recent business bank statements
- Owner ID and business details
- Note on whether the equipment is new or used
Frequently asked questions
Can I finance used restaurant equipment?
Often, yes. Many funders will finance used equipment from a dealer or auction when there is a clear invoice and the item has resale value. Some limit the age of used pieces or shorten the term. Buying used from a closing restaurant can save money, but confirm the equipment is free of liens first.
Does equipment financing require a down payment?
Some offers require one and some do not. A down payment is more common for newer restaurants, specialized equipment with limited resale value, or owners with thinner credit. Ask each funder how the down payment changes the monthly amount and the total cost before choosing.
Can installation and delivery be included?
Frequently, when they appear on the vendor's invoice. Hood installs, electrical work and gas hookups can be significant, so ask the vendor to itemize them. Building work that is not part of the equipment itself may need a separate product, such as a term loan.
How long are restaurant equipment financing terms?
Terms typically follow the useful life of the equipment, so a walk-in cooler may qualify for a longer term than a tablet-based POS. Exact terms vary by funder, equipment type and the strength of the application. Choose a term you can comfortably carry in a slow month.
What happens to the equipment if my restaurant closes?
Because the equipment usually secures the financing, the funder may have the right to recover it if payments stop. Read the agreement for what happens on default, and whether there is also a personal guarantee. If trouble is coming, contact the funder early.
Price out the equipment, then the payment
Share your quote and see which equipment financing options fit your restaurant.
Updated September 14, 2026 · Restaurant Capital Now Funding Team