Restaurant Equipment Financing

It can be frustrating when you can run a restaurant but lack the capital to finance the business.

However, there is a way to avoid these frustrations with the aid of professionals. In addition to restaurant design, equipment acquisition is very important.

But how do you get exactly what you need conveniently?

The thing is, without consulting experts in this field, purchasing restaurant equipment such as refrigerators, stoves, dishwashing equipment, and other essential equipment necessary for you to run a successful restaurant can be a tough and expensive endeavor.


Restaurant Equipment

What is Restaurant Equipment Financing?

Restaurant equipment financing will help you get the tools you require to run your business without limiting your overall cash flow.

This form of funding affords business owners access to capital via a loan so that they can acquire the necessary equipment by using that same equipment as collateral for their loan, without the need to offer external collateral.

Small business owners have a tough time managing the cash flow and improving the equipment in your restaurant.

With restaurant equipment financing, restaurant owners can now run a competitive business by managing the cash flow while purchasing new equipment required to run the business.

The financing option is a flexible solution allowing restaurant owners to get new equipment without collateral or down payment.

How to Apply for Restaurant Equipment Financing

The application process is straightforward. If you are decided on restaurant equipment financing, here is how to apply:

  1. The application form is filled online depending on your choice of financing option. A couple of options available include Balboa Capital, Currency Finance, Crest Capital, and National Funding.
  2. Connect with your funding specialist and discuss your financing options. Choose the option that best suits your needs.
  3. When the process is complete, the funds are approved, and you can access them in less than 24 hours.

Application for this type of business loan is only sensible if you require a new piece of equipment, but other loan options are available if that is not the case.

Restaurant equipment financing is the best option if you are unable to provide collateral. In addition, you can get the loan on affordable terms despite having an average credit score or fewer qualifications.

Before applying for equipment financing, it is essential to ask yourself a couple of crucial questions.

First, what is the cost of the equipment you want to purchase? Second, what terms of agreement work for you? How much money is needed? Having figured out the answers to these questions will make the financial application process smooth.

The equipment financing loan is not handed to anybody; there are qualifications for the financing that a restaurant should meet, such as:

  • A credit score of at least 630
  • The business should be at least two years
  • The business should collect over $130,000 in revenue annually

Restaurant Financing

Benefits of Restaurant Equipment Financing

The advantages of restaurant equipment financing include:


Using restaurant equipment financing helps business owners save cash for other things.

Your cash flow is not limited to purchasing new equipment; instead, you can use it to keep the restaurant competitive.

In addition, the equipment financing guards against inflation by locking in an interest rate, and paying a monthly price saves you from the impact of inflation.

Accelerates Your Return on Investment (ROI)

Using restaurant equipment financing, you don’t require to pay a large sum of money to buy a piece of new equipment; instead, it enables you to make small payments which are convenient while using the equipment to generate more revenue.

Improves Credit

The small on-time payments you make monthly to pay for the new equipment will positively impact your credit score.

Financing Companies Offer a 100% Financing Option

The financing companies offering equipment financing require no down payment or collateral.

Getting 100% financing means you can use the money to grow your restaurant.

Asset Management

Opting for restaurant equipment financing means the financing company is responsible for the delivery and disposal of the equipment.

In addition, you don’t have to stress about maintenance, servicing, and repairs as those are catered for by your financing company.

Caters to Urgent Needs

When in need of restaurant equipment urgently and you lack the financial capability to purchase, getting equipment financing is a great option.

With access to restaurant equipment financing, you can better and new equipment to keep your restaurant competitive.

The Loan Is Fast

When you have all the necessary documents in order, and you are decided on which funding company to work with, then acquiring the loan will take less than 24 hours.

The application process is fast, and you can access your loan in less than one business day.

Once you own the restaurant equipment, you can lease the new material as a financing solution.

Leasing your kitchen equipment will enable you to generate cash flow for the business while using the profits to grow your restaurant.

Equipment leasing is a little different from equipment financing in that in the funding, you will formally own the equipment, while in the former, your lender will officially own the equipment.

Bottom Line

Restaurant equipment financing means your restaurant can count the equipment as part of the restaurant’s assets.

In equipment leasing, the lender owns the equipment, but you make monthly payments on the said equipment.

With the completion of the charge, you can possess the leased equipment or opt not to purchase the equipment and instead upgrade.

Equipment leasing and financing are different, and can both help you grow your restaurant or bar.

You might want to consider both options and keenly choose one that works best for your restaurant’s needs.