Restaurant equipment financing: a plain guide for owners

Restaurant equipment financing is a loan or lease used to buy a specific piece of foodservice equipment. 1West describes equipment financing as getting necessary equipment right now, with payments over time, instead of saving a large lump sum. Because the equipment itself usually serves as collateral, lenders can often approve restaurants that would not qualify for an unsecured loan, and rates tend to be lower than on many other forms of small business funding.

Typical items include ovens, ranges, refrigeration, dish machines, POS systems and complete kitchen packages. 1West accepts used or new equipment and most equipment types, including software. It does not offer leasebacks on equipment a business already owns.

• 1West equipment financing: rate as low as 7%, 5 to 60 month terms, $10K to $5M, about 1 week to fund, as published on 1west.com as of November 2026.
• Market range: roughly 6% to 18% depending on credit and business history, per Rezku's 2026 guide.
• Full-service kitchen buildout: typically $75,000 to $250,000 for equipment alone, per Crestmont Capital.
• Price pressure: many kitchen equipment categories are up 20 to 35 percent from pre-pandemic levels, per the same Crestmont source.

1West lists used equipment as eligible. Buying used can shrink the amount you finance; EconoLease, a Canadian provider, advertises up to 65% savings on its own certified used gear. Bring the item's age, condition and serial details, because lenders look harder at older assets.

1West generally looks for at least six months in business and $20,000 in monthly revenue, so a restaurant that has not opened yet may not qualify through 1West. Start up owners often explore SBA options first, then return for equipment financing once they have bank statements to show.

1West's general benchmark is a 600+ FICO score. Above it, equipment financing is often more reachable than unsecured funding because the gear secures the deal. Expect pricing to reflect your score, and compare total repayment, not just the monthly payment.

Contractors use construction business loans for excavators, skid steers and dump trucks, for payroll between progress payments, and for owner-occupied buildings through SBA 504.

Clinics finance imaging, exam and lab equipment with loans or leases, including structures that end in a $1 buyout. Down payments of 10% to 20% are common, per one industry guide.

Daycares fund payroll, classroom expansion, playground equipment and repairs, and certain non-profit childcare centers can use SBA microloans of $50,000 or less.