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Best Restaurant Equipment Financing Options of 2024

By Lisa A. Anthony, Olivia Chen
Last updated on October 4, 2024
Edited by Sally Lauckner
Fact checked and reviewed
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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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.
Here are our picks for restaurant equipment financing options.

How much do you need?

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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

LenderNerdWallet RatingMax loan amountMin. credit scoreNext steps

SBA 7(a) loan

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Best for large loan amounts

$5,000,000650

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Triton Capital - Equipment financing

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4.1/5

Best for bad credit

$250,000575

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Bluevine - Line of credit

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5.0/5

Best for fast line of credit draws

$250,000625

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National Funding - Equipment Financing

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4.2/5

Best for flexible requirements

$150,000600

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iBusiness Funding - Online term loan

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4.5/5

Best for long-term loans

$500,000660

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OnDeck - Online term loan

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4.7/5

Best for speedy financing

$250,000625

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Headway Capital - Line of credit

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4.7/5

Best for low-revenue restaurants

$100,000625

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Bank of America - Equipment loan

Read Review
4.3/5

Best for low-cost financing

$750,000700
Read Review

Here are 8 restaurant equipment financing

Best for large loan amounts

U.S. Small Business Administration

Max Amount

$5,000,000

Min. Credit Score

650

Best for bad credit

Triton Capital

Max Amount

$250,000

Min. Credit Score

575

Best for fast line of credit draws

Bluevine

Max Amount

$250,000

Min. Credit Score

625

Best for flexible requirements

National Funding

Max Amount

$150,000

Min. Credit Score

600

Best for long-term loans

iBusiness Funding

Max Amount

$500,000

Min. Credit Score

660

Best for speedy financing

OnDeck

Max Amount

$250,000

Min. Credit Score

625

Best for low-revenue restaurants

Headway Capital

Max Amount

$100,000

Min. Credit Score

625

Best for low-cost financing

Bank of America

Max Amount

$750,000

Min. Credit Score

700

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

Read Review

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Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.75-14.25%

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.
Low interest rate

SBA 7(a) loan

Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.75-14.25%
Low interest rate

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

4.1
NerdWallet rating 

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Max loan amount
$250,000
Min. credit score
575
Est. APR
6.50-34.99%

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

NerdWallet rating 
4.1/5
Max loan amount
$250,000
Min. credit score
575
Est. APR
6.50-34.99%

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

Read Review

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Max loan amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%

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.
May fund quickly

Bluevine - Line of credit

NerdWallet rating 
5.0/5
Max loan amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%
May fund quickly

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

Read Review

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Max loan amount
$150,000
Min. credit score
600

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

NerdWallet rating 
4.2/5
Max loan amount
$150,000
Min. credit score
600

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

Read Review

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Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%

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.
May fund quickly

iBusiness Funding - Online term loan

NerdWallet rating 
4.5/5
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
May fund quickly

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

Read Review

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Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%

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.
May fund quickly

OnDeck - Online term loan

NerdWallet rating 
4.7/5
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
May fund quickly

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

Read Review

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Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%

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

NerdWallet rating 
4.7/5
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%

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

Read Review
Max loan amount
$750,000
Min. credit score
700

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

NerdWallet rating 
4.3/5
Max loan amount
$750,000
Min. credit score
700

How Much Do You Need?

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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.
  • 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

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.
If you work better when visualizing numbers, your restaurant's point-of-sale system can help you pull some numbers on your income, and an equipment loan calculator can help you figure out how much financing you can afford.

Consider your restaurant’s qualifications

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.

Determine which type of financing is best for your business

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.

Compare rates and terms

Once you’ve narrowed down your loan type and lenders, you’ll want to compare as many as you can.
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.

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.
Last updated on October 4, 2024

Methodology

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including: transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to business credit bureaus and responsible lending practices. We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

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.

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