Restaurant equipment financing can help you buy appliances, cash registers and other essential equipment for your restaurant, cafe or fast-food business.
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Olivia Chen
Lead Writer | CDFI, SMB Lending
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Small-business lending
Business finance
Olivia Chen is a former NerdWallet small-business writer. She has more than five years of experience working in the CDFI lending industry.
Senior Writer & Content Strategist | Small business, business banking, business loans
Expertise
Small business
Business lending
Business banking
Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona University (formerly Iona College).
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
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Content was accurate at the time of publication.
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Reviewed by
Randa Kriss
Senior Writer & Content Strategist | Small business, business banking, business loans
Expertise
Small business
Business lending
Business banking
Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona University (formerly Iona College).
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
NerdWallet's content is fact-checked for accuracy, timeliness, and relevance by humans. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible. Learn more by checking our Editorial Guidelines.
Content was accurate at the time of publication.
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
50+ categories of the best business loan selections.
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
You're our first priority.
Every time.
We believe everyone should be able to make financial decisions with confidence. While we don’t cover every company or financial product on the market, we work hard to share a wide range of offers and objective editorial perspectives.
So how do we make money? Our partners compensate us for advertisements that appear on our site or when you click to or take an action on their website. This compensation helps us provide tools and services - like free credit score access and monitoring. With the exception of mortgage, home equity and other home-lending products or services, partner compensation is one of several factors that may affect which products we highlight and where they appear on our site. Other factors include your credit profile, product availability and proprietary website methodologies.
However, these factors do not influence our editors’ opinions or ratings, which are based on independent research and analysis. Our partners cannot pay us to guarantee favorable reviews. Here is a list of our partners.
Select your business type to get personalized loan recommendations:
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
SBA 7(a) loans stand out as an affordable option for businesses that can’t qualify for bank financing, but still have good credit and finances. 7(a) loans offer low interest rates, long repayment terms and large funding amounts. These loans can also be used for a variety of purposes, including working capital, business expansions or purchasing equipment and supplies.
For-profit U.S. business.
Unable to access credit on reasonable terms from nongovernment sources.
Financial qualifications determined by individual lender.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
Charges an origination fee.
Requires higher annual revenue than other online lenders.
Triton Capital stands out as an online equipment lender for borrowers with lower credit scores. Triton Capital can finance new or used equipment in a variety of industries. The lender offers competitive interest rates, long repayment terms and flexible payment options. You may be able to get approved and receive funding in as fast as one business day.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Not available in North Dakota, South Dakota or Nevada.
Rates can be high compared with traditional lenders.
Bluevine stands out for its fast funding speed and flexible qualification requirements. To get a line of credit, you can apply quickly online and receive funding in as little as 24 hours. Newer businesses and borrowers with bad credit may be able to qualify. Bluevine also offers a larger credit line maximum compared to some competitors and doesn’t charge draw or account maintenance fees.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Charges a factor rate that makes it more difficult to compare costs with other lenders.
Can't be used to build business credit.
Charges an origination fee.
National Funding stands out as an online equipment financing option for borrowers with bad credit. This lender offers equipment loans or leases for new and used equipment, and unlike some equipment lenders, doesn’t require a down payment. Funding can be available in as little as 24 hours.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Cash can be available within two to four business days.
Competitive rates among online lenders.
Terms up to five years.
iBusiness Funding also offers SBA loans up to $5 million.
Cons
Charges an origination fee.
Must be in business for a minimum of 24 months.
Minimum credit score is higher than some other lenders.
iBusiness Funding is a good option for qualified business owners who don’t want to wait for bank financing. The lender offers competitive interest rates and long repayment terms, but can fund much more quickly than traditional lenders. And with a large maximum funding amount, this loan can be used for a variety of long-term expansion projects, as well as refinancing existing debt.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Cash can be available within the same business day (does not apply in California or Vermont).
Accepts borrowers with a minimum credit score of 625.
Streamlined application process with minimal documentation required.
Can be used to build business credit.
Cons
Cannot fund North Dakota-based businesses.
Requires frequent (daily or weekly) repayments.
Interest rates can be high compared with traditional lenders.
Charges origination fee.
OnDeck’s short-term loan is a good option for making one-time investments in your business, such as opening a new location or renovating your space. This loan offers fast funding (sometimes as quickly as the same day) for borrowers who may not qualify for more traditional financing options. OnDeck’s short-term loan can also be used to establish and build business credit — as the lender reports your payment history to the three commercial credit bureaus.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Funds available by next business day after approval.
Cons
Most borrowers are subject to a 2% draw fee.
Not available in all U.S. states.
Headway Capital offers a fast and flexible business line of credit that’s a good option for those who can’t qualify for traditional financing. The lender can work with startups and businesses with low revenue. Headway can fund applications as fast as the next day after approval. Unlike some online lines of credit, however, you’ll likely have to pay a draw fee to access your funds from Headway.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Bank of America’s rewards program can offer interest rate discounts and other perks.
Fee discounts available for veteran-owned businesses.
Cons
Charges an origination fee.
Prepayment fees may apply to early repayments.
Can be slow to fund.
Application cannot be completed online.
If you’re looking for an equipment loan from a big bank, Bank of America may be a good option. The lender offers equipment loans starting at $25,000 and loan terms of up to seven years. Bank of America rewards customers may also be able to access discounted rates.
U.S. Small Business Administration: Best for large loan amounts
SBA 7(a) loans offer up to $5 million that can be used for restaurant equipment financing. SBA loans offer lower rates and long repayment terms, but typically are slow to process so are likely not a fit if you need to purchase equipment quickly.
SBA 7(a) loans stand out as an affordable option for businesses that can’t qualify for bank financing, but still have good credit and finances. 7(a) loans offer low interest rates, long repayment terms and large funding amounts. These loans can also be used for a variety of purposes, including working capital, business expansions or purchasing equipment and supplies.
For-profit U.S. business.
Unable to access credit on reasonable terms from nongovernment sources.
Financial qualifications determined by individual lender.
If bad personal credit is preventing you from getting equipment that will help your restaurant, Triton Capital may be an option for you. It only requires a credit score of 580 for its equipment loans. The loans have flexible repayment terms that allow you to tailor payments to your restaurant’s income and can fund in one to two business days.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
Charges an origination fee.
Requires higher annual revenue than other online lenders.
Triton Capital stands out as an online equipment lender for borrowers with lower credit scores. Triton Capital can finance new or used equipment in a variety of industries. The lender offers competitive interest rates, long repayment terms and flexible payment options. You may be able to get approved and receive funding in as fast as one business day.
Bluevine can approve an initial line of credit within five minutes and fund as quickly as the same day. If you have a Bluevine business checking account, additional draws on your line can be approved instantly.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Not available in North Dakota, South Dakota or Nevada.
Rates can be high compared with traditional lenders.
Bluevine stands out for its fast funding speed and flexible qualification requirements. To get a line of credit, you can apply quickly online and receive funding in as little as 24 hours. Newer businesses and borrowers with bad credit may be able to qualify. Bluevine also offers a larger credit line maximum compared to some competitors and doesn’t charge draw or account maintenance fees.
National Funding is an online lender that specializes in equipment financing. It has flexible qualification requirements. Repayments are made on a monthly basis, which may be helpful for cash flow. It also offers prepayment discounts.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Charges a factor rate that makes it more difficult to compare costs with other lenders.
Can't be used to build business credit.
Charges an origination fee.
National Funding stands out as an online equipment financing option for borrowers with bad credit. This lender offers equipment loans or leases for new and used equipment, and unlike some equipment lenders, doesn’t require a down payment. Funding can be available in as little as 24 hours.
iBusiness Funding (formerly Funding Circle) offers loans up to $500,000 with repayment terms up to seven years, making it a good option for long-term financing of a large restaurant equipment purchase.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Cash can be available within two to four business days.
Competitive rates among online lenders.
Terms up to five years.
iBusiness Funding also offers SBA loans up to $5 million.
Cons
Charges an origination fee.
Must be in business for a minimum of 24 months.
Minimum credit score is higher than some other lenders.
iBusiness Funding is a good option for qualified business owners who don’t want to wait for bank financing. The lender offers competitive interest rates and long repayment terms, but can fund much more quickly than traditional lenders. And with a large maximum funding amount, this loan can be used for a variety of long-term expansion projects, as well as refinancing existing debt.
For restaurants that have been operating for at least a year with minimum annual revenue of $100,000, OnDeck offers term loans up to $250,000. OnDeck provides a streamlined application process, and funds may be available within the same business day, making it a good potential fit for restaurants that cannot wait to access funding.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Cash can be available within the same business day (does not apply in California or Vermont).
Accepts borrowers with a minimum credit score of 625.
Streamlined application process with minimal documentation required.
Can be used to build business credit.
Cons
Cannot fund North Dakota-based businesses.
Requires frequent (daily or weekly) repayments.
Interest rates can be high compared with traditional lenders.
Charges origination fee.
OnDeck’s short-term loan is a good option for making one-time investments in your business, such as opening a new location or renovating your space. This loan offers fast funding (sometimes as quickly as the same day) for borrowers who may not qualify for more traditional financing options. OnDeck’s short-term loan can also be used to establish and build business credit — as the lender reports your payment history to the three commercial credit bureaus.
For restaurants with lower-cost financing needs, Headway Capital offers lines of credit up to $100,000, with a minimum annual revenue requirement of only $50,000.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Funds available by next business day after approval.
Cons
Most borrowers are subject to a 2% draw fee.
Not available in all U.S. states.
Headway Capital offers a fast and flexible business line of credit that’s a good option for those who can’t qualify for traditional financing. The lender can work with startups and businesses with low revenue. Headway can fund applications as fast as the next day after approval. Unlike some online lines of credit, however, you’ll likely have to pay a draw fee to access your funds from Headway.
Bank of America’s equipment loans are a low-cost option for restaurants with a minimum annual revenue of $250,000 and have been operating for at least two years. It offers low origination fees and, like most bank loans, affordable interest rates.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates responsible lending practices, cost, impact on business credit score, transparency and customer experience.
Bank of America’s rewards program can offer interest rate discounts and other perks.
Fee discounts available for veteran-owned businesses.
Cons
Charges an origination fee.
Prepayment fees may apply to early repayments.
Can be slow to fund.
Application cannot be completed online.
If you’re looking for an equipment loan from a big bank, Bank of America may be a good option. The lender offers equipment loans starting at $25,000 and loan terms of up to seven years. Bank of America rewards customers may also be able to access discounted rates.
Financing your restaurant’s refrigerators, furniture and other equipment with a small-business loan or line of credit can help spread those costs over time, freeing up cash to pay employees and buy supplies.
Dedicated equipment loans — which use the financed equipment as collateral — can be a good choice if you need fast funding or can’t qualify for low-cost bank or SBA loans. Whether you have a relatively new restaurant or an established operation with strong financials, compare all your options. The best financing choice will offer the most favorable rates and terms for your business.
Where to get restaurant equipment financing
A variety of lenders offer financing options that can be used to purchase equipment for your restaurant.
Banks and credit unions
Generally, you’ll find the most competitive interest rates and terms at traditional financial institutions. However, banks and credit unions typically require you to have multiple years in business and excellent credit.
SBA lenders
If you can’t qualify for a bank loan then an SBA loan — offered through traditional banks and other lenders, but partially guaranteed by the U.S. Small Business Administration — may be a good alternative. However, good credit and multiple years in business are often required.
So far in fiscal year 2026, 13% of SBA 7(a) loans have gone to food service businesses
If you don’t qualify for a bank or SBA loan or you need funding quickly, loans offered by online lenders and equipment financing companies may be the right fit. Although online loans typically have higher interest rates and shorter terms than a bank loan, they tend to have more flexible qualification requirements.
POS providers
Some restaurant point-of-sale companies, for example, Square and Toast provide funding for their existing customers through merchant cash advances (MCAs). The application process may be more streamlined, and you may be able to access funds more quickly than with a traditional loan. However, both Toast and Lightspeed charge fees instead of interest rates, which can be trickier to compare. In addition, MCAs can be expensive and trap you in a bad cycle of debt. They are best used as a last resort.
Choosing the best business loan for your restaurant starts with finding out what you can qualify for, then finding the option with the best rates and terms.
Understand how much your restaurant can afford
Because restaurant cash flow can be volatile, especially within the first few years, you’ll want to make sure that you can support payments on an equipment loan before you commit to anything. That means understanding what to expect from your daily or weekly cash flow and how it aligns with other fixed expenses related to your restaurant.
Understanding what type and amount of funding your restaurant will qualify for is a huge part of determining which type of financing you should get. Similar to most small-business loans, restaurant equipment lenders will take your restaurant’s financial history, time in operation and your personal credit score into account when evaluating your application.
Generally, equipment financing can be more lenient because it comes with built-in collateral; however, you’ll still need to have strong annual revenue.
Make sure you’re looking at annual percentage rate (APR), not just interest rate, especially if you are comparing different types of lenders. APR encompasses the total cost of financing, including interest rate and fees, which makes it a better number to compare to make sure you’re getting the best deal.
Keep in mind that the actual rate and term you get from a lender will depend on your restaurant’s specific qualifications. To avoid being blindsided, you may consider comparing the highest rates, or working directly with the lenders you’re comparing to get a narrower idea of what you can expect.
There are several types of financing — equipment loans, term loans or lines of credit — that you can use to purchase equipment for your restaurant. Here is a look at each, as well as the situations where they may make the most sense for your business.
Equipment loans
With equipment financing, the equipment you’re buying as collateral. This is a form of asset-based financing, which can be easier to qualify for than debt-based forms of financing like lines of credit. Equipment financing can be a good option for you if:
You have bad or fair credit. Equipment financing can be easier to qualify for than other business loan options since lenders use the equipment as collateral — if you fall behind on payments, they can just repossess the assets.
You need an expensive piece of equipment fast. Equipment lenders may process your application in a matter of hours and get you funding in a few days. If your walk-in breaks down, for instance, an equipment loan could get you a replacement fast, while still giving you a long repayment term for the pricey purchase.
With a business term loan, you’ll receive all your funding in a lump sum and then repay your loan on a regular schedule over a set period of time. Business term loans generally range in size from $5,000 to $5 million or more. Term loans are best if:
You have strong qualifications. Good credit, strong revenue and several years in business may help you qualify for a low interest rate, long term and manageable payments.
You’re an existing business. Term loans are generally suited to restaurants that are expanding, opening a second location or moving into a new space. They generally don't work as startup business loans for new businesses.
Business lines of credit
A business line of credit works similarly to a credit card — you can withdraw funds as you need them up to your limit, and then pay back what you’ve used over time. As you pay down your balance, you can draw on your line of credit up to the limit again. Business lines of credit work well if:
You can handle a short repayment period. The money you borrow with a line of credit may have to be repaid in as little as six months, so they're better suited to relatively smaller purchases, like a new restaurant point-of-sale system, for example. Also, weekly payments instead of monthly may be required.
You’re unsure of how much funding you need. With a line of credit, you have the flexibility to spend money as needed whether that’s when equipment is installed or as other expenses arise. You’ll pay interest only on the funds you draw, and after you pay down your balance, you can withdraw funds again.
Restaurant equipment leasing
Equipment leasing is another option for restaurant owners who may not qualify for traditional financing or who expect an appliance to have a short shelf life. Like equipment financing, you’ll make a monthly payment. But when the lease ends, the lender will take the equipment back or you may have the option to buy it from them.
When evaluating your application, leasing companies will consider factors, like your length of time in business and personal credit score. But since leases are less risky than loans — the lender can simply repossess the equipment if you fall behind on payments — you may find it easier to lease the equipment you need. Leasing may also make sense if the equipment becomes obsolete quickly and you’ll need to replace it in a few years.
NerdWallet writer Rosalie Murphy contributed to this article.
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