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Best Financing Options for Restaurant Equipment

Restaurant equipment financing can help ease the financial burden of operating your restaurant.
Written by Jackie Zimmermann
Edited by Kimberly Lowe
Last updated on September 20, 2021

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Managing a successful restaurant means monitoring a lot of moving parts, including chefs, wait staff, daily specials — and your equipment.
And there’s good news: Restaurant consultant David Kincheloe notes that it’s often easier to qualify for restaurant equipment financing than other types of financing because the transaction produces collateral. When you finance an oven, you can use that oven to secure your loan.
Brand-new big-ticket items such as stoves, refrigerators or dishwashers typically last seven to 10 years, a prime length for mid- or long-term financing. Because equipment financing often comes with a high annual percentage rate, Kincheloe doesn’t recommend using it to buy smaller items (like microwaves) unless you can bundle them with a larger purchase.
Here are recommendations for restaurant equipment financing.

How much do you need?

with Fundera by NerdWallet

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 3 options for you

Lender
Max loan amount
Min. credit score
Next steps

SBA 7(a) loan

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$5,000,000650

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OnDeck - Online term loan

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$250,000600

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Funding Circle - Online term loan

with Fundera by NerdWallet

$500,000660

with Fundera by NerdWallet

Read Review

with Fundera by NerdWallet

SBA 7(a) loan

Read Review

with Fundera by NerdWallet

Max Loan Amount

$5,000,000

Min. Credit Score

650

Est. APR

5.50-8.00%

Depending on your creditworthiness and your business's financials

7(a) program participants include specialized lenders like Live Oak Bank and big-name traditional banks like Wells Fargo.
Lowest interest rate
Read Review

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OnDeck - Online term loan

Read Review

with Fundera by NerdWallet

Max Loan Amount

$250,000

Min. Credit Score

600

Est. APR

9.00-99.00%

Depending on your creditworthiness and your business's financials

OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
May fund quickly
Read Review

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Funding Circle - Online term loan

Read Review

with Fundera by NerdWallet

Max Loan Amount

$500,000

Min. Credit Score

660

Est. APR

10.13-36.00%

Depending on your creditworthiness and your business's financials

Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
May fund quickly

How Much Do You Need?

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If you’ve been in business for 1+ years

OnDeck provides capital to restaurants that are beginning to simmer but haven’t been in business long enough to reach a full boil. Its term loans are accessible with a 600 minimum credit score and one year in business. That could make OnDeck a good option for restaurateurs who are still finding their footing. However, it’s important to note that OnDeck term loans max out at 18 months, so they’re best used for short-term equipment financing needs.

If you’ve been in business for 2+ years

SBA loans have lower APRs and more favorable terms than those offered by many alternative lenders. They also have more stringent qualifications, which means they’re most suitable for established restaurant owners who are ready to invest in new, high-end gear.
For established businesses, Funding Circle also offers competitive APRs. If approved, you can get funding within a week (compared to an SBA loan, which typically takes several weeks) making it a prime option for restaurateurs looking to cash in on flash sales or equipment discounts.

Find and compare the best small-business loans

If you’re still on the hunt for small-business loan options, compare options on 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 your needs.
Last updated on September 20, 2021

To recap our selections...

Best Financing Options for Restaurant Equipment