Restaurant equipment financing: kitchens, refrigeration and POS

A commercial kitchen can include ranges, ovens, fryers, refrigeration, dish machines, hoods and point-of-sale systems. Paying for all of it in cash leaves little for the opening months, when revenue is still building and every week of payroll counts.

What can be financed

• Cooking equipment and hoods
• Walk-ins, reach-ins and other refrigeration
• Dish machines and prep equipment
• Furniture, fixtures and signage
• POS hardware and software

New restaurants vs. existing ones

Established restaurants with 2 or more years of history usually have the most options. New restaurants and franchisees can often finance equipment too, especially with a strong franchise brand, owner experience or a down payment. Expect lenders to review the owner’s credit and restaurant experience closely, because new restaurants carry more risk.

Used and refurbished equipment

Used kitchen equipment can save money, but check condition, refrigerant type and parts availability. Lenders finance used equipment from established dealers more easily than private sales or equipment bought from a closing restaurant.

Plan the whole budget

Remember installation, gas and electrical work, hood and fire-suppression inspections, and opening inventory. Financing soft costs with the equipment, and adding working capital for the first months, can keep a new restaurant from running short before it finds its rhythm.

Remodels and second locations

Remodels are often timed for slow seasons. Ask about deferred first payments so the new equipment is running before the payment starts. For a second location, the first location’s track record matters most; have its financial statements ready.

Taxes

Kitchen equipment, furniture and POS systems generally qualify for Section 179. Some building improvements, such as certain HVAC and fire-protection work, may qualify too. Ask your tax advisor.

All financing is subject to credit approval and documentation.