# Restaurant Equipment Financing Fundamentals Canonical URL: https://fundmyequipment.com/learn/restaurant-equipment-financing-fundamentals/ Last modified: 2026-05-29T19:39:17+00:00 Type: efin_guide ## Summary Restaurant Equipment Financing Fundamentals. Comprehensive guide. ## Content Restaurant equipment financing covers cooking equipment, refrigeration, dishwashing, POS systems, and front-of-house furniture used in independent restaurants and chain franchises. Equipment categories and typical financing EquipmentTypical priceUseful life Commercial range$3K-$15K10-15 years Convection oven$3K-$10K10-15 years Combi oven$8K-$25K10-15 years Walk-in cooler / freezer$5K-$25K10-20 years Reach-in refrigeration$3K-$10K8-12 years Dishwasher (commercial)$5K-$20K10-15 years POS system$3K-$15K5-7 years Hood and exhaust$8K-$30K15-20 years Full kitchen package$50K-$300Kvaries Industry-specific considerations High failure rate industry. Restaurant business failures concentrate in years 1-3. Lenders factor this into underwriting. New restaurants need stronger personal credit and higher down. Franchise vs independent. Franchised concepts (Subway, Domino's, etc.) often have established lender relationships and standardized financing. Independent concepts face broader underwriting. Multi-unit operators. Operators with 3+ units often get better terms due to portfolio diversification. Equipment package bundling. Full kitchen build-outs typically combine equipment from multiple manufacturers. Bundle financing through a kitchen design-build firm or pick equipment-specific financing. Health code compliance. Equipment must meet NSF/ANSI standards. Used equipment without current certifications can be hard to finance. Typical financing terms Rate range: 9% to 22% APR depending on credit tier and equipment age Term: 36 to 84 months Down payment: 0% to 25% depending on credit and equipment SBA eligibility: Yes; SBA 7(a) and 504 programs are well-suited Lender pool Restaurant-specialty lenders: Lendio, Restaurant Loans Direct, Bankers Healthcare Group (general SMB) OEM/distributor captives: Restaurant Depot, US Foods, Sysco often offer financing through partners Banks with food service: most community banks have restaurant lending programs SBA 7(a) extensively used for restaurant equipment and tenant improvements What can go wrong Industry-specific regulatory changes (emissions, licensing, safety) affecting equipment value Customer or contract concentration affecting cash flow Equipment age limits in lender underwriting boxes Seasonal revenue mismatched with monthly payments Inadequate maintenance reserves leading to deferred-service buildup Action steps Identify specific equipment with model and configuration Get quotes from at least one dealer and any captive financer Pull last 6 months of bank statements and 2 years of tax returns Run payment scenarios at different down payments Consider soft-pull prequalification before committing to a specific lender Apply with restaurant equipment specifics in the notes See also our insurance requirements guide and Section 179 strategy for tax planning.