The best restaurant equipment financing depends on whether your purchase is urgent or planned. If your walk-in cooler just died or you also need to cover installation and permits, Merchant Fund Express is our recommended funder for speed. For new or used equipment up to $150,000 with no required down payment, consider National Funding; for leasing, Accion Opportunity Fund; and for large projects with citizen owners, an SBA 7(a) loan usually costs less.
In a restaurant, equipment is not a luxury: no hood means no kitchen, no refrigeration means no inventory, and no point of sale means no way to get paid. This guide compares the options using facts each one publishes and helps you decide what to finance with what, so the payment does not eat your margin.
Key takeaways
- Merchant Fund Express is our recommended funder for urgent equipment, installation or used gear: 500+ FICO and decisions often in 2–4 hours.
- National Funding publishes equipment financing up to $150,000 with no required down payment, new or used.
- Accion Opportunity Fund offers leasing to restaurants but requires owners to be citizens or permanent residents.
- The SBA 7(a) usually costs less, but since March 2026 it requires owners to be U.S. citizens or nationals.
- Always ask whether installation and permits are included in the financing.
- Match the payment term to the useful life of the equipment.
The best restaurant equipment financing, ranked
We rank on verifiable criteria: speed, time in business, minimum credit, acceptance of ITIN holders or non-citizen owners, documents, amounts and collateral. No made-up ratings; the method is in how we rank business funding options.
- Merchant Fund Express (recommended funder). It reviews your sales and deposits, not just your credit, with amounts from $5,000 to $5,000,000, credit from a 500 FICO, and decisions that often come in 2–4 hours. In most cases it does not require collateral. It fits when the equipment is urgent, when you also need to pay for installation, the electrician and permits, or when you buy used equipment from a private seller, which many equipment lenders will not cover. It accepts ITIN applicants (no SSN needed), and support is available in Spanish.
- National Funding, equipment financing. According to its site, it finances new or used equipment up to $150,000, can cover up to 100% of the cost, and does not require a down payment or upfront fees. It also mentions the Section 179 deduction; ask your accountant whether it applies to you.
- Accion Opportunity Fund, leasing. This nonprofit offers equipment leasing with customized options and serves, among others, the restaurant and food industry. Its site requires all shareholders to be U.S. citizens or permanent residents, and it offers coaching in English and Spanish.
- SBA 7(a) loan through your bank. Goes up to $5 million and usually costs less than online financing. But it takes weeks, asks for more documents and, since March 1, 2026, requires 100% of owners to be U.S. citizens or nationals. If you qualify and can wait, always compare it.
- Vendor or manufacturer financing. Commercial kitchen distributors sometimes offer brand payment plans. They can come with promotions, but check the term, late fees, required insurance, and what happens if the equipment fails while you are still paying for it.
Quick comparison
| Option | Amounts | Down payment | Used equipment | Non-citizen owners | Speed |
|---|---|---|---|---|---|
| Merchant Fund Express | $5,000 to $5,000,000 | Not in most cases | Yes, it is working capital | Yes, accepts ITIN | Decisions often in 2–4 hours |
| National Funding | Up to $150,000 | Not required | Yes, new or used | Not published on that page | Fast |
| Accion Opportunity Fund | Depends on project | Depends on lease | Not detailed | Requires citizen or permanent resident | Weeks |
| SBA 7(a) | Up to $5,000,000 | Depends on bank | Depends on bank | No: requires citizens or nationals | Weeks or months |
| Vendor or manufacturer | Depends on equipment | Depends on promotion | Rarely | Depends on vendor | Varies |
If you hold a green card or an ITIN, the citizenship column changes your list: the SBA 7(a) drops out, and so do some nonprofits. This guide is not immigration advice; talk to an immigration attorney about your situation if you have questions.
What to finance with what, piece by piece
Every piece of a kitchen has a different useful life and installation cost. This table helps you decide what to finance with what:
| Equipment | What drives the cost up | What usually fits |
|---|---|---|
| Hood and fire suppression system | Installation, ductwork, inspection and city permits | Working capital or SBA, since much of the cost is not movable equipment |
| Walk-in cooler and refrigeration | Electrician, compressor, flooring | Equipment financing; fast capital if it is an emergency |
| Ovens, fryers and griddles | Gas hookup, the right hood | Equipment or vendor financing |
| Commercial dishwasher | Plumbing and grease trap | Equipment financing or leasing |
| Point of sale and tablets | Monthly software | Leasing or vendor payment plan |
| Dining room furniture | Wears out quickly | Short-term working capital |
Look at the first row: with a hood, a big share of the cost is labor and permits. Many equipment lenders only cover the equipment, not the installation, so ask before you sign which part of the invoice is included. For a deeper look at products, see equipment financing for restaurants.
Buy, lease or buy used
There is no single answer, but experienced owners follow a few rules:
- Buy what you will use for many years and that will not go obsolete: stainless tables, hoods, well-installed walk-ins.
- Lease what changes with technology or gets replaced often: point of sale, screens, some coffee or ice machines.
- Buy used when the equipment is simple and sturdy (tables, shelving, some griddles), after checking that it works and that parts are available.
- Avoid used refrigeration and dishwashers without a warranty; one failure can cost you a full load of inventory.
- Match the term to the useful life: do not pay for five years on something you will replace in two.
A practical warning: used equipment bought at auction or from a restaurant that closed is often cheap, but many equipment lenders will not finance it if the seller is not a dealer. That is where working capital based on your sales gives you more flexibility. If you are new to the business, our guide to restaurant equipment leasing for new restaurateurs walks through the trade-offs.
Documents and common mistakes
Have this ready before you ask for any equipment financing:
- A written quote. With brand, model, new or used, and delivery and installation listed separately.
- Business bank statements. Three to six months, with card and cash sales deposited.
- Point-of-sale reports. They confirm daily sales and seasonality.
- Licenses and permits. Health permit, business license and, if needed, a building permit for the installation.
- Your lease. Some lenders ask how much time you have left; if the equipment is built in, also check what your lease says about improvements.
Common mistakes: financing the equipment but forgetting the installation cost, signing a lease without reading the purchase option at the end, and buying more capacity than your volume needs. A bigger oven burns more gas every month.
If your restaurant is less than a year old. Banks will often tell you to wait. At that stage, the equipment as security and your recent deposits matter more than your history. Show your weekly sales reports, your lease and the equipment quote, and explain how the equipment raises sales or cuts costs, for example a second fryer that shortens ticket times at peak hours.
How to compare two offers. Put them side by side with the same information: amount you receive, payment frequency (daily, weekly or monthly), term, upfront fees, any final payment or down payment, and what happens if you pay early. A daily payment can be comfortable in a restaurant that sells every day, but heavy if you close one or two days a week. Pick the one your cash flow can handle in your slowest month, not your best.
Our recommendation
If the equipment is urgent or includes installation and permits, Merchant Fund Express, our recommended funder, gives you a fast answer based on your sales: applying is free, does not impact your credit, and support is available in Spanish. If the purchase is planned, also compare National Funding for straight equipment and, if you qualify, an SBA 7(a) for large projects, which usually costs less.
If you are remodeling the whole restaurant or opening a second location, also see the best funding for restaurants, because there the equipment is only one part of the project. Leer en español
Frequently asked questions
What is the best financing for a restaurant walk-in cooler?
If it is planned, equipment financing usually fits because the cooler backs the debt; National Funding, for example, publishes up to $150,000 with no required down payment. If it is an emergency and your inventory is about to spoil, a fast funder that looks at your sales can solve it in hours. Always ask whether installation is included.
Can I finance restaurant equipment with an ITIN?
It depends on the option. The SBA 7(a) requires citizen or national owners since March 2026, and Accion Opportunity Fund requires citizens or permanent residents. Merchant Fund Express accepts applicants with an ITIN, no SSN needed, and reviews your sales and deposits. Ask any other lender which ID it accepts before you apply.
Can I finance used restaurant equipment?
Some lenders will. National Funding publishes financing for new or used equipment. But if you buy from a private seller, at auction or from a restaurant that closed, many equipment lenders will not cover it. In that case, working capital based on your sales lets you buy wherever you want.
Is it better to lease or buy commercial kitchen equipment?
Buy what lasts many years and does not change, like stainless tables or well-installed hoods. Lease what goes obsolete or gets replaced often, like your point of sale. Always read the purchase option at the end of a lease and compare the total payments on both options.
Does equipment financing cover hood installation?
Not always. Many equipment lenders cover only the equipment, not labor, ductwork or permits. Get the quote with installation listed separately and ask which part is included. If it is not covered, working capital or a broader loan can complete the project.
Can I deduct restaurant equipment on my taxes?
Some lenders mention the Section 179 deduction for equipment financed or bought during the year. Whether it applies depends on your tax situation, so check with your accountant before you decide. Do not pick a financing option just for the tax benefit.