Restaurant equipment is expensive and breaks predictably. A commercial walk-in is $15K-$40K. A 6-burner range with oven is $5-$10K. A pizza oven is $20K-$60K. Equipment financing lets you spread the cost over the equipment's useful life instead of crushing your operating cash flow.
What restaurant equipment qualifies
Cooking equipment (ovens, ranges, fryers, grills, salamanders, char-broilers, pizza ovens, conveyor toasters). Refrigeration (walk-ins, reach-ins, prep tables, ice machines, blast chillers). Prep equipment (mixers, slicers, food processors). Storage (shelving, racks). Front-of-house (POS, payment terminals). Hood systems and ventilation. Service equipment (espresso machines, draft systems, bar equipment).
New vs used equipment
Both qualify for financing. Used equipment from reputable restaurant supply, dealer, or auction is fully fundable. The lender will appraise the equipment's fair market value. Used equipment typically gets 60-80% LTV (loan-to-value), new equipment up to 100%. Restaurant supply auctions can offer 50-70% savings vs new — financing makes used equipment even more attractive.
Equipment financing vs equipment leasing
Financing = you own the equipment after the term. Leasing = you return or buy out at end of term. Financing builds equity. Leasing has lower monthly payments. For long-life equipment (walk-ins, hoods, ovens that last 10-20 years), financing wins. For technology that depreciates fast (POS systems, kitchen tablets), leasing can make more sense.
Typical terms
Loan amounts: $5K-$500K typical for restaurant equipment. Terms: 1-7 years matching useful life. Down payment: 10-20% typical, sometimes 0% with strong credit. Approval: 1-3 days for amounts under $50K, 1-2 weeks for larger amounts.
Equipment failures = funding emergencies
When your walk-in dies on a Friday, you can't wait 60 days for a bank decision. 24-hour equipment financing exists exactly for these moments. Most equipment lenders have rapid-response programs for equipment-down situations — get approved Friday, equipment installed Tuesday.