Financing your restaurant’s refrigerators, furniture and other equipment with a small-business loan can help spread those costs over time, freeing up cash to pay employees and buy ingredients.
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. But if you have an established restaurant with strong financials, compare all your options. The best choice will ultimately offer the most favorable rates and terms for your business.
Here are our picks for restaurant equipment financing options.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 5 restaurant equipment financing options
Lender | NerdWallet Rating | Max loan amount | Min. credit score | Next steps |
|---|---|---|---|---|
Triton Capital - Equipment financing with Fundera by NerdWallet | 4.0/5 Best for Equipment financing for restaurants | $250,000 | 600 | with Fundera by NerdWallet |
SBA 7(a) loan with Fundera by NerdWallet | Best for Term loans for restaurant equipment | $5,000,000 | 650 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Term loans for restaurant equipment | $250,000 | 625 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Term loans for restaurant equipment | $500,000 | 660 | with Fundera by NerdWallet |
American Express Business Blueprint™ - Line of credit on American Express Business Blueprint™'s website | 4.5/5 Best for Lines of credit for restaurant equipment | $250,000 | 640 | on American Express Business Blueprint™'s website |
Here are 5 restaurant equipment financing options
Best for Equipment financing for restaurants
Best for Term loans for restaurant equipment
Best for Lines of credit for restaurant equipment
Our pick for
Equipment financing for restaurants
Triton Capital - Equipment financing
4.0
NerdWallet rating with Fundera by NerdWallet
Max Loan Amount
$250,000
Min. credit score
600
Est. APR
5.99-35.00%
Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.
4.0
NerdWallet rating Max loan
$250,000
Min. Credit score
600
Apr range
5.99-35.00%
with Fundera by NerdWallet
Our picks for
Term loans for restaurant equipment
SBA 7(a) loan
Max Loan Amount
$5,000,000
Min. credit score
650
Est. APR
10.00-12.50%
7(a) program participants include specialized lenders like Live Oak Bank and big-name traditional banks like Wells Fargo.
Lowest interest rate
Max loan
$5,000,000
Min. Credit score
650
Apr range
10.00-12.50%
OnDeck - Online term loan
Max Loan Amount
$250,000
Min. credit score
625
Est. APR
29.90-97.30%
OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
May fund quickly
Max loan
$250,000
Min. Credit score
625
Apr range
29.90-97.30%
Funding Circle - Online term loan
Max Loan Amount
$500,000
Min. credit score
660
Est. APR
5.99-16.49%
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
May fund quickly
Max loan
$500,000
Min. Credit score
660
Apr range
5.99-16.49%
Our pick for
Lines of credit for restaurant equipment
American Express Business Blueprint™ - Line of credit
Max Loan Amount
$250,000
Min. credit score
640
American Express Business Blueprint™ loans are a good option for business owners with fair credit who want access to working capital.
Max loan
$250,000
Min. Credit score
640
How Much Do You Need?
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. Here’s when each type of financing makes the most sense.
Business term loans are best if:
- You have strong qualifications. If you have good credit, strong revenue and several years in business, you may qualify for a low interest rate and long term, giving you manageable payments and lots of flexibility.
- You’re an existing business looking to expand. Term loans generally don't work as startup business loans because they aren't available to new businesses. They’re best suited to restaurants that are opening a second location or moving into a new space.
Equipment financing is best 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, you likely can't wait on a bank loan. An equipment loan could get you a replacement fast, while still giving you a long repayment term for the pricey purchase.
» MORE: Best fast business loans
Business lines of credit are best 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. Make sure you're ready to start shopping before you apply for a line of credit.
- You’re not sure exactly how much funding you need. With a line of credit, you have the flexibility to spend money on installation, setup and other equipment expenses that may arise. You’ll pay interest only on the funds you draw, and after you pay down your balance, you can withdraw funds again.
With a term loan, you’ll receive all your funding in a lump sum. Consider these options if a term loan seems right for your restaurant.
If your business is only starting to simmer: OnDeck provides capital to restaurants that haven’t been in business long enough to reach a full boil. Its term loans are accessible with a minimum credit score of
625
and one year in business. However, it’s important to note that OnDeck term loans max out at 24 months, so they’re best used for short-term equipment financing needs.If your restaurant is well established: SBA loans have lower APRs and more favorable terms than those offered by many alternative lenders. They also have more stringent qualifications — you’ll have to have been in business for more than two years, for example. That means SBA loans are most suitable for established restaurant owners who are ready to invest in new, high-end gear.
If you want funding fast to cash in on an opportunity: Online lenders can often get you funding within a week — compared to an SBA loan, which typically takes several weeks. You’ll generally pay a higher interest rate in exchange for that speed. But for established businesses, Funding Circle also offers competitive APRs, making it a good option for restaurateurs looking to cash in on flash sales or equipment discounts.
Equipment financing is a type of business loan that uses 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.
If you have bad credit: National Funding offers restaurant equipment financing to entrepreneurs with as little as six months in business and a FICO score of 600. You can borrow up to $150,000.
» MORE: Bad credit business loans
If you’re investing more than $150,000: Triton Capital offers equipment loans of up to $250,000. Its restaurant equipment financing loans can have APRs start at 5.99% with terms as long as five years. The lender says you can be approved for a loan in a matter of hours and have financing in hand within days.
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.
Consider these line of credit options for restaurants.
If your revenue is currently low: American Express® Business Line of Credit is available to business owners with as little as $3,000 in monthly revenue. So if you’re looking to expand a smaller business, like a pop-up shop or food truck, into a brick-and-mortar location, this may be a good option.
If you need financing right away: Bluevine's line of credit can fund in as little as 24 hours. It has a slightly lower minimum credit score than the American Express® Business Line of Credit does — 625 instead of 640 — so if you’re struggling to qualify for financing, it might be a good option. Bluevine also requires at least 24 months in business.
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 traditional 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 be able to get the equipment you need with as little as your first and last month’s lease payments.
If you’re on the hunt for even more small-business loan options, check out our small-business loan marketplace, which includes different loan types, from term loans to lines of credit. We always recommend borrowers compare multiple options to find a loan with costs, terms and features that match their needs.
Last updated on February 7, 2023