Restaurant Equipment Financing

Short answer: Restaurant equipment financing lets you buy ranges, hoods, walk-in coolers, dish machines and POS systems with payments spread over time, using the equipment itself as collateral. It keeps cash free for food and payroll, and approval is often faster and easier than for unsecured loans.

At a glance

Best option: Equipment financing secured by the equipment
Typical uses: Cooking lines, refrigeration, dish machines, POS
NexGen equipment financing: $10,000 to $10,000,000
Down payment: Up to 100% financing for qualified borrowers
Approval speed: Typically 1 to 24 hours for many programs
Credit: 650+ on most programs; 500+ for revenue-based financing; 700+ for SBA loans

Kitchen equipment is the backbone of every restaurant, and it rarely fails at a convenient time. Whether you’re opening a new concept, replacing a walk-in that died over the weekend or upgrading to equipment that cuts labor and energy costs, financing lets you get what you need now and pay for it as it earns. This guide covers equipment financing for restaurants, bars, cafes, bakeries, caterers and ghost kitchens.

At NexGen Lending, we help food businesses nationwide finance new and used equipment with one application.

What is the best way to finance restaurant equipment?

Short answer: Equipment financing is usually the best way, because the equipment secures the loan and you own it once it’s paid off. A line of credit can cover small or emergency purchases, while a term or SBA loan makes sense when equipment is part of a larger build-out.

Financing type	Best for
Equipment financing	Ranges, hoods, fryers, ovens, walk-ins, dish machines, ice machines
Business line of credit	Smaller purchases, emergency repairs, smallwares
Term loans & unitranche debt	Equipment bundled with a remodel or second location
SBA 7(a) or 504 loan	Large build-outs and major fixed equipment

How much restaurant equipment can I finance?

Short answer: NexGen equipment financing runs from $10,000 to $10,000,000, with up to 100% financing and no down payment for qualified borrowers. That covers anything from a single walk-in cooler to a full kitchen package for a new location, including installation in many cases.

Bundling several pieces into one loan keeps your paperwork simple and gives you one predictable payment. Ask vendors to quote delivery, installation and any electrical, gas or plumbing work so nothing surprises you on install day.

Should I lease or finance restaurant equipment?

Short answer: Financing makes sense for long-lasting equipment you plan to keep, like ranges, walk-ins and hoods, because you own it when the loan is paid. Leasing can make sense for technology you’ll upgrade often, like POS systems, or when you want the lowest possible monthly payment.

What is Section 179? Section 179 of the U.S. tax code may let businesses deduct some or all of the cost of qualifying equipment in the year it’s placed in service, rather than depreciating it over time. Talk to your tax professional about whether your purchase qualifies.

How do I qualify for restaurant equipment financing?

Short answer: Have a vendor quote ready, run sales through your POS and business bank account, know your credit score and show how the equipment supports revenue or cuts costs. Because the equipment is collateral, lenders are often more flexible than with unsecured loans.

Get a written quote. Include make, model, price, delivery and installation.
Show recent deposits. Three to six months of bank statements usually help.
Explain the payback. More covers, faster tickets or lower energy bills all count.
Know your credit. NexGen equipment financing requires a 650+ credit score; revenue-based financing starts at 500.
Bundle purchases. One loan for several pieces is simpler than many.
Compare offers. See how we compare lender offers.

Can a new restaurant finance its equipment?

Short answer: Yes. Equipment financing is one of the most accessible options for new restaurants, because the equipment itself secures the loan. Lenders still review your restaurant experience, personal credit and business plan, and may ask for more owner investment than they would from an established operator.

Pairing equipment financing with an SBA loan for the build-out is a common approach for new concepts. If you’re opening another spot, see our guide to financing a second location.

How fast can I get restaurant equipment financing?

Short answer: Many NexGen programs approve in 1 to 24 hours, which matters when a cooler or range goes down in the middle of service. Larger equipment packages tied to a build-out or SBA loan usually take longer.

Frequently asked questions about restaurant equipment financing

Can I finance used restaurant equipment?

Often, yes. Lenders will ask for the make, model, age and seller. Used equipment from reputable dealers is commonly financed.

Can I include installation in the loan?

In many cases, yes. Ask your vendor to include delivery and installation in the quote.

What happens to the equipment after I pay off the loan?

With equipment financing, you own it outright once it’s paid off.

Can I finance a POS system?

Yes. POS hardware and related equipment are commonly financed or leased.

What if my credit isn’t perfect?

With a 500 to 649 credit score, revenue-based financing is the main option, since it leans on sales more than credit. Most other NexGen programs, including equipment financing and lines of credit, require 650+, and SBA loans require 700+. Below 500, NexGen's business credit guidance can help you understand your credit profile and build toward approval.

Need new equipment in your kitchen? Apply now or call (908) 639-4361.

This article is for general informational purposes only and is not financial, legal, or tax advice. NexGen figures come from NexGen’s service pages as of October 2026. Consult a tax professional about Section 179. Loan terms, rates, and eligibility vary by lender and program and are subject to approval. Availability varies by state.

Restaurant Equipment Financing: How to Buy Kitchen Equipment Without Draining Your Cash