9
Best Restaurant Equipment Financing Options
OnDeck
Loan amounts
$5,000 to $250,000
Minimum Credit Score
625
Time in business
1 year
$5,000 to $250,000
625
1 year
Eligibility
- Minimum credit score: 625
- Time in business: One year
- Minimum revenue: $100,000 per year
Turnaround time
You can apply and receive a decision from OnDeck on the same day.
Compare the Best Restaurant Equipment Financing Options
| COMPANY | FORBES ADVISOR RATING | LOAN AMOUNTS | TIME IN BUSINESS | LEARN MORE |
|---|---|---|---|---|
 
|
Up to $150,000
|
6 months
|
On National Funding's Website
| |
|
|
$5,000 to $400,000
|
1 year
|
Via Ondeck's Website
| |
|
|
$5,000 to $250,000
|
1 year
|
Read Forbes Review
| |
Crest Capital Equipment Financing
|
|
up to $500,000
|
2 years
| |
US Business Funding Equipment Financing
|
|
$10,000 to $50 million
|
2 years
| |
|
$100,000 to $10 million
|
No requirement
|
On National Business Capital's Website
|
Best Restaurant Equipment Financing Options: A Closer Look
Best for Small- to Mid-sized Businesses
National Funding
Loan amounts
Up to $150,000
Time in business
6 months
Minimum Credit Score
575
Up to $150,000
6 months
575
National Funding offers equipment financing Up to $150,000. Borrowers can use their funds for new or used business equipment, such as medical, restaurant, office and construction equipment. Funds can also be used as farm loans and commercial fleet vehicle financing.
- Low minimum credit score requirement
- Financing Up to $150,000
- Funds can finance new or used equipment
- Low loan amount compared to competitors
Eligibility: National Funding recommends a minimum credit score of 575 to qualify for its equipment financing. Your business must also have been in operation for at least six months. National Funding requires minimum gross annual sales of $250,000.
Turnaround time: Most of National Funding’s loans are disbursed within 24 hours of approval. However, this is subject to receipt of required documentation, underwriting guidelines and processing time by your bank.
Best for Short-term Loans
OnDeck
Loan amounts
$5,000 to $400,000
varies by loan
Minimum Credit Score
625
Time in business
one year
$5,000 to $400,000
varies by loan
625
one year
We picked OnDeck for its variety of business lending products and same-day funding. OnDeck offers a term loan from $5,000 to $400,000 with repayments terms of up to 24 months. You can also access a credit limit of $6,000 to $100,000 through its line of credit with a 12-month repayment term that resets after each withdrawal.
- Term loans from $5,000 to $400,000
- Same-day funding available
- 0% origination fee limited to renewed term loans
- $100,000 minimum annual revenue requirement
- Must have been operating for at least one year
- Does not lend to businesses in North Dakota
Eligibility
- Minimum credit score: 625
- Time in business: One year
- Minimum revenue: $100,000 per year
Turnaround time
You can apply and receive a decision from OnDeck on the same day.
Consumer Sentiment Index
- Overall rating: 3.1/5 — Satisfied
Based on 6,300 customer insights and reviews for the entire category.
Some customers praised the lender for its quick and straightforward lending process, while others complained of high interest rates and feeling misled about rates and fees.
Disclaimer: The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
Best Overall Restaurant Equipment Financing
Balboa Capital
Loan amounts
$5,000 to $250,000
Minimum Credit Score
620
Time in business
one year
$5,000 to $250,000
620
one year
Balboa Capital gets an A+ rating from the Better Business Bureau (BBB) and has funded over $7 billion in loans in the U.S. If you need a short-term loan, Balboa Capital offers options from $5,000 to $250,000 .
You can fill out an application online, and you could get an approval within an hour. Borrowers can choose from loan terms between three and 24 months. While excellent credit isn’t needed to qualify, the higher your credit score, the better your interest rate will likely be.
- Loans from $5,000 to $250,000
- Online application with quick funding
- May qualify with just a year in business
- $300,000 annual revenue requirement
- Not suited for new businesses
Eligibility
- Minimum credit score: 620
- Time in business: At least one year
- Minimum annual revenue: $300,000
Turnaround time
In some cases, you may be able to apply and get funding within the same day.
Best for Small Loans
Crest Capital Equipment Financing
Loan amounts
up to $500,000
Time in business
2 years
Minimum Credit Score
650
up to $500,000
2 years
650
- Offers application-only approval for loans up to $250,000
- Same-day approval available
- Does not impose extensive credit requirements
- Does not finance companies in business for less than two years
- Financing amounts are low compared to competitors
- Actual interest rates may be confusing
Eligibility: Crest Capital requires a minimum credit score of 650. To be eligible, businesses must also be in operation for at least two years.
Turnaround time: Lending decisions are typically made the same day, and the lender sends funds directly to the equipment vendor.
Best for Fast Approval
US Business Funding Equipment Financing
Loan amounts
$10,000 to $50 million
Time in business
2 years
Minimum Credit Score
650
$10,000 to $50 million
2 years
650
US Business Funding offers flexible terms that range from three months to 10 years. Loans are available for up to $50 million with a full financial package, but borrowers can access up to $75,000 with a one-page credit application.
The lender’s rate qualifying tool makes it easy to shop for loans and is based on borrowing needs, industry, time in business and other relevant factors. Approval and funding are fast and applicants get a dedicated financial consultant to assist throughout the borrowing process.
- Offers fast, 60-second approval
- 24-hour funding available
- Advertises 95% approval rates
- Does not publish maximum APRs
- Businesses may need to be in business for at least two years
- One-page application only available for loans up to $75,000
Eligibility: To qualify for most of US Business Funding’s loan programs, a company must have been in business for at least two years. Exceptions exist, however, and it may be possible to qualify based on company creditworthiness. The lender also has a program for businesses six months or older and freelancers who can demonstrate time in business with a business checking account or tax returns. Overall, the company boasts a 95% approval rate.
Turnaround time: Approval can often be completed within a few hours. Funding speeds are also fast and borrowers typically receive funds within 24 to 48 hours after acceptance.
Best for New Businesses
National Business Capital Equipment Financing
Loan amounts
$100,000 to $10 million
Time in business
1 year
Minimum Credit Score
Varies, see eligibility criteria below
$100,000 to $10 million
1 year
Varies, see eligibility criteria below
National Business Capital is a fintech marketplace that provides equipment financing with less extensive qualification requirements than other lenders. Loans are available through a network of more than 75 lenders and range from $100,000 to $10 million. Terms range from one to ten years.
The application is only one page long and requires just three months of bank statements—tax returns are not required. What’s more, there is no time-in-business requirement for certain borrowers. Borrowers also work with a personal loan advisor who simplifies the lending process.
- Lease and loan options
- Works with a wide range of business types
- Network includes over 75 lenders
- Substantial minimum revenue requirement
- Funding times start at two weeks
- Does not publish APRs and other fees online
Eligibility: Applicants with a credit score of at least 600 are not subject to minimum time-in-business or gross sales requirements. Likewise, there is no minimum credit score requirement for borrowers that have been in business for at least six months and can demonstrate at least $500,000 in annual gross sales. The application process only requires a soft credit pull, which doesn’t hurt your credit.
Turnaround time: The approval process reportedly takes a few hours to a few days, and funding may be completed in two+ weeks.
Most Popular is calculated from the number of times each affiliate product was selected by Forbes Advisor users over a six month time period.
Tips to Compare Restaurant Equipment Financing
When choosing the best financing for your restaurant equipment needs, compare all of your options and use these tips to get the best deal:
- Evaluate your needs. Before shopping around for financing, ensure you know what equipment you want and how much you need to borrow. Understanding these needs can help you identify the best type of equipment financing for your restaurant.
- Compare interest rates. Equipment financing rates typically range from 4% to 30%. However, they may be higher for certain types of loans and less qualified borrowers. Compare rates from multiple lenders to get the best deal.
- Consider available repayment terms. Equipment financing repayment terms usually depend on the equipment’s usable life. Terms often range from three to 10 years but may be longer for certain U.S. Small Business Administration (SBA) loans.
- Compare total costs. Extended repayment terms translate into lower monthly payments but can result in higher interest payments over time. Origination fees, prepayment penalties and other fees can also add to the overall cost of borrowing, so compare these expenses between various lenders.
What Is Restaurant Equipment Financing?
Restaurant equipment financing is a type of loan used to purchase restaurant equipment like ovens, ventilation, refrigerators and other appliances. Businesses that don’t have cash on hand or those that need to retain cash to cover operating expenses typically use this type of financing to purchase the equipment outright.
Financing for restaurant equipment may come in the form of traditional small business loans, lines of credit and equipment financing loans. Business loans and lines of credit are usually available from online lenders, traditional banks and credit unions. You may also find equipment financing through many equipment vendors and manufacturers.
Interest rates, loan amounts and terms vary depending on the lender. However, most restaurant equipment loans have a fixed interest rate from around 4% to 30% with repayment terms based on the life expectancy of the equipment. Lenders calculate loan amounts based on the purchase price of the equipment and its value as collateral.
How Does Restaurant Equipment Financing Work?
How restaurant equipment financing works depends on the type of loans used to purchase the equipment. This can range from traditional business term loans secured by the underlying equipment to unsecured lines of credit accessible as needed.
Most equipment financing loans are term loans with repayment periods between three to five years. During this time, borrowers make fixed monthly payments toward the principal balance and interest charges. Once the loan is paid in full, the borrower owns the restaurant equipment outright. If a borrower defaults on their loan, the lender can repossess the collateral to recoup its losses.
What Can You Use Restaurant Equipment Financing For?
Business owners can use restaurant equipment financing for a variety of purposes, including purchasing new or used equipment, leasing equipment and refinancing existing equipment loans.
Common examples of restaurant equipment that borrowers can finance include ovens, ranges, refrigerators, freezers, dishwashers and other kitchen appliances. Most loans can also be used for other types of restaurant equipment, including furniture, fixtures and decor.
How to Choose Restaurant Equipment Financing
Equipment financing often refers to a loan that’s secured by the underlying assets being financed. However, multiple types of financing can help restaurant owners purchase equipment for their businesses. The best restaurant equipment financing depends on several factors, including the borrower’s qualifications, business history, timeline and loan preferences.
Traditional equipment financing may be a good option for business owners who:
- Have a bad or fair credit score
- Want to purchase an expensive piece of equipment
- Need access to the equipment quickly
- Prefer a longer repayment term with low monthly payments
On the other hand, a traditional term loan may be the best option for applicants with high credit scores and extensive business histories that will help them qualify for competitive rates and terms without needing to pledge collateral. Business lines of credit are a better fit for business owners who are unsure of their financing needs and who can handle the monthly payments that come with shorter repayment terms.
Methodology
We reviewed 12 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 25%
- Customer experience: 20%
- Eligibility and accessibility: 10%
- Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.