Can I refinance my commercial kitchen equipment in Colorado?

Yes—commercial kitchen equipment can be refinanced with a 620‑plus FICO and 24+ months in business; rates start at 9–12% APR and approvals take 30–45 days. See if you qualify.

The specifics

Refinancing a commercial kitchen in Colorado typically follows these criteria:

• Credit: Minimum FICO 620; scores 740+ receive the lowest APR.
• Time in business: 24+ months; newer businesses need additional collateral or a personal guarantee.
• Debt‑to‑income: Monthly debt service should not exceed 40 % of gross revenue.
• Equipment: The gear becomes collateral, giving lenders confidence that the loan is secured.
• Rate & term: According to Huntington Bank, equipment financing rates are 9–12% APR, with terms ranging from 48 to 84 months.
• Approval time: As noted by Bankrate, the typical approval window is 30–45 days once all documentation is submitted.
• Collateral benefit: A secured loan can reduce the APR by 1–3% (see the attached infestation risk analysis).
• Compute affordability: Use our affordability‑calculator to confirm the monthly payment fits within the 8–12 % of gross revenue rule cited by lenders.
• Colorado‑specific resources: The Colorado Springs restaurant equipment financing guide provides local lender options and state‑level tax incentives.

Qualification & edge cases

If your FICO lags between 620 and 679, you may still qualify, but expect APRs 10–12% and a longer approval cycle—up to 60 days. If your monthly debt service exceeds 40 % of revenue, you could be denied or offered a limited second lien of up to 30 % of gross revenue. Businesses that only operate for 18 months can apply under special bridge‑financing rules, but will likely need a personal guarantee and may see rates 2–3 % higher. Low‑volume operators (annual revenue < $250k) should verify that the lender’s underwriting model accepts such cash‑flows, as some lenders cap total debt at $250k for new customers. For borrowers with multiple lines of credit, lenders evaluate the total debt‑to‑income ratio; a cumulative ratio over 50 % may trigger a denial.

Background & how it works

Commercial kitchen equipment financing works like any secured loan: the equipment itself is the collateral and the loan is repaid over a fixed term with a fixed or variable APR. Lenders assess the value of the gear, your business’s cash flow, and credit history. Once approved, lenders notify you of the final APR, down‑payment obligation (usually 15–20 % of the equipment cost), and repayment schedule. Your monthly payment is calculated so that it stays within the recommended 8–12 % of gross revenue bracket, keeping your debt service coverage ratio above 1.25×.

Bottom line

A Colorado restaurant can refinance kitchen equipment starting at 9‑12 % APR if you meet the credit and revenue thresholds above. The process takes just 30‑45 days and can unlock lower monthly payments or free up working capital. See if you qualify now.

Disclosures

This content is for educational purposes only and is not financial advice. commercialkitchenfinancing.com may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.

Sources

• Huntington Bank
• Bankrate
• Nav