How do I finance restaurant equipment?
Restaurant owners can secure equipment loans with a 620‑679 FICO score, 15‑20% down, and 48‑84 months at 9‑13% APR. See rates instantly.
Yes — you can finance restaurant equipment with a Fair Credit score of 620‑679, a 15‑20% down payment, and a 48‑84 month term at 9‑13% APR.
Yes — you can finance restaurant equipment with a Fair Credit score of 620‑679, a 15‑20% down payment, and a 48‑84 month term at 9‑13% APR.
See your rate in 2 minutes.
The specifics
Restaurant equipment loans typically require 15–20% down payment and terms of 48–84 months. APRs range from 9–13% for borrowers with a fair credit score of 620‑679; those with a good score of 740 or higher can often obtain 9–11% APR. Lenders mandate a minimum debt‑service coverage ratio (DSCR) of 1.25× and that monthly debt service not exceed 12% of gross monthly revenue. Down payments for used equipment can increase by 1–2%, and lenders may charge 1–3% origination fees. The average approval timeline is 30–45 days, and most equipment loans are secured by the equipment itself.
To see how a $150,000 purchase would affect your cash flow, use our affordability calculator.
Qualification & edge cases
- Good credit (≥740): lower APR, possible 15% down payment.
- Fair credit (620–679): higher APR and may require a co‑signer or additional collateral.
- New business (<2 yrs): lenders often demand a detailed business plan and may add an origination fee.
- Used equipment: add 1–2% APR; consider leasing if you anticipate frequent upgrades.
- High rent or low occupancy: if rent consumes more than 70% of revenue, lenders may tighten terms.
For food trucks seeking equipment financing, see the 2026 guide on food truck loans.
Background & how it works
The commercial kitchen equipment market is projected to grow at a CAGR of 4.5% through 2036, according to [The Business Research Company] (https://www.thebusinessresearchcompany.com/report/equipment-finance-service-global-market-report). Equipment finance services themselves are expected to reach a global market size of $92 billion by 2026, per [ResearchAndMarkets] (https://www.researchandmarkets.com/reports/6062383/equipment-finance-service-market-report?srsltid=AfmBOoqa7inOGOdaJaCNEEXTHX72EGEmVPIeyq-9JOjP-J4Zzrd6oKU8). The lease‑to‑buy model remains a favored option for restaurants due to its flexibility, as highlighted by the [Lease Foundation] (https://www.leasefoundation.org/industry-research/u-s-economic-outlook/). Sponsors and lenders base approval on credit, revenue, and the value of the equipment, with documented finances such as tax returns and bank statements proving cash flow.
Bottom line
In 2026, restaurant owners with a fair credit score can secure equipment financing with a 15‑20% down payment and a 48‑84 month term at 9‑13% APR. Check your rate in 2 minutes and get approved quickly.
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
Related questions
What are the typical loan terms for restaurant equipment?
Restaurant equipment loans are usually offered for 48 to 84 months, with the average term falling around 60 to 72 months.
How does my credit score affect the rate for restaurant equipment financing?
A FICO score of 740 or higher earns rates as low as 9‑11% APR, while a score of 620‑679 typically incurs 12‑13% APR.
Do lenders require a business plan for new restaurants?
New businesses less than two years old often need a detailed business plan to demonstrate revenue projections for loan approval.
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