Best Restaurant Equipment Financing Options
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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restaurant equipment financing: More details
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.
Low interest rate
SBA 7(a) loan
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Max loan amount
$5,000,000
Min. credit score
650
Term length
Up to 25 years
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
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Triton Capital: Best 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
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Max loan amount
$250,000
Min. credit score
575
Term length
12 months to 5 years
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.
- Requires higher annual revenue than other online lenders.
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.
- Requires higher annual revenue than other online lenders.
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Bluevine: Best 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.
May fund quickly
Bluevine - Line of credit
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Max loan amount
$200,000
Min. credit score
625
Term length
6 to 12 months
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.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
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.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
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National Funding: Best 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
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Max loan amount
$150,000
Min. credit score
600
Term length
24 months to 5 years
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.
- Can't be used to built business credit.
- Charges an origination fee.s a factor rate that makes it more difficult to compare costs with other lenders.
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.
- Can't be used to built business credit.
- Charges an origination fee.s a factor rate that makes it more difficult to compare costs with other lenders.
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iBusiness Funding: Best 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.
May fund quickly
iBusiness Funding - Online term loan
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Max loan amount
$500,000
Min. credit score
660
Term length
6 months to 5 years
Pros
- Cash can be available within two 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.
Pros
- Cash can be available within two 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.
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OnDeck: Best 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.
May fund quickly
OnDeck - Online term loan
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Max loan amount
$400,000
Min. credit score
625
Term length
18 to 24 months
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.
- Charges origination fee.
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.
- Charges origination fee.
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Headway Capital: Best 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
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Max loan amount
$100,000
Min. credit score
625
Term length
12 to 24 months
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.
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.
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Bank of America: Best 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
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Max loan amount
$750,000
Min. credit score
700
Term length
Up to 5 years
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
- Charges an origination fee.
- Prepayment fees may apply to early repayments.
- Can be slow to fund.
- Application cannot be completed online.
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
- Charges an origination fee.
- Prepayment fees may apply to early repayments.
- Can be slow to fund.
- Application cannot be completed online.
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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.
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
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, 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.
» MORE: Best business bank loans
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.
» MORE: Bad-credit business loans
Compare rates and terms
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.
Types of restaurant equipment loans
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.
» MORE: Best food truck financing
Term loans
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.
Last updated on March 31, 2026
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