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 8 restaurant equipment financing
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for large loan amounts | $5,000,000 | 650 | with Fundera by NerdWallet |
Triton Capital - Equipment financing | 4.1/5 Best for bad credit | $250,000 | 575 | with Fundera by NerdWallet |
Bluevine - Line of credit | 5.0/5 Best for fast line of credit draws | $250,000 | 625 | with Fundera by NerdWallet |
National Funding - Equipment Financing | 4.2/5 Best for flexible requirements | $150,000 | 600 | with Fundera by NerdWallet |
iBusiness Funding - Online term loan | 4.5/5 Best for long-term loans | $500,000 | 660 | with Fundera by NerdWallet |
OnDeck - Online term loan | 4.7/5 Best for speedy financing | $250,000 | 625 | with Fundera by NerdWallet |
Headway Capital - Line of credit | 4.7/5 Best for low-revenue restaurants | $100,000 | 625 | with Fundera by NerdWallet |
Bank of America - Equipment loan Read Review | 4.3/5 Best for low-cost financing | $750,000 | 700 | Read Review |
Here are 8 restaurant equipment financing
Best for large loan amounts
Best for bad credit
Best for fast line of credit draws
Best for flexible requirements
Best for long-term loans
Best for speedy financing
Best for low-revenue restaurants
Best for low-cost financing
I'M INTERESTED IN:
Our pick 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) loan
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Personal guarantee is required.
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Personal guarantee is required.
- Collateral is typically required.
- Longer processing times than online lenders.
Qualifications:
- For-profit U.S. business.
- Unable to access credit on reasonable terms from nongovernment sources.
- Financial qualifications determined by individual lender.
Our pick for
bad credit
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.
Triton Capital - Equipment financing
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Triton Capital - Equipment financing
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Qualifications:
- Minimum credit score: 580.
- Minimum time in business: Two years.
- Minimum annual revenue: $150,000.
Our pick for
fast line of credit draws
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.
Bluevine - Line of credit
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Requires personal guarantee.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared to traditional lenders.
Bluevine - Line of credit
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Requires personal guarantee.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared to traditional lenders.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $120,000.
- No bankruptcies in the past year.
Our pick for
flexible requirements
National Funding is an online lender that specializes in equipment financing. It has flexible qualification requirements (your restaurant needs only six months in business and you need a personal credit score of 600 to potentially qualify). Repayments are made on a monthly basis, which may be helpful for cash flow. It also offers prepayment discounts.
National Funding - Equipment Financing
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing.
National Funding - Equipment Financing
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing.
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: Six months.
- Minimum annual revenue: $250,000.
Our pick for
long-term loans
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.
iBusiness Funding - Online term loan
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of two years.
- Minimum credit score is higher than some other lenders.
iBusiness Funding - Online term loan
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of two years.
- Minimum credit score is higher than some other lenders.
Qualifications:
- Minimum credit score: 660.
- Minimum time in business: Two years.
- Minimum annual revenue: $50,000.
- No bankruptcies in the past seven years.
Our pick for
speedy financing
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.
OnDeck - Online term loan
Pros
- 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.
- Requires business lien and personal guarantee.
OnDeck - Online term loan
Pros
- 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.
- Requires business lien and personal guarantee.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: One year.
- Minimum annual revenue: $100,000.
- Must have business bank account.
Our pick for
low-revenue restaurants
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.
Headway Capital - Line of credit
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- 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 - Line of credit
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- 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.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: Six months.
- Minimum annual revenue: $50,000.
Our pick for
low-cost financing
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.
Bank of America - Equipment loan
Pros
- Competitive interest rates.
- Longer repayment periods.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
- Fee discounts available for veteran-owned businesses.
Cons
- Multiple years in business required.
- Limited rate and fee information online.
- Can be slow to fund.
- Application cannot be completed online.
Bank of America - Equipment loan
Pros
- Competitive interest rates.
- Longer repayment periods.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
- Fee discounts available for veteran-owned businesses.
Cons
- Multiple years in business required.
- Limited rate and fee information online.
- Can be slow to fund.
- Application cannot be completed online.
Qualifications:
- Minimum time in business: Two years.
- Minimum annual revenue: $250,000
Where to get restaurant equipment financing
- 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.
- Online lenders. 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 Toast and Lightspeed, 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 tricker 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.
How to choose restaurant equipment financing
Understand how much your restaurant can afford
Consider your restaurant’s qualifications
Determine which type of financing is best for your business
- 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.
- 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.
- 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.
Compare rates and terms
Restaurant equipment leasing
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.