Restaurant Equipment Financing: Ovens, Fridges, and Hoods (Bad Credit OK)

Picture this: It’s 7:30 PM on a Friday. The dining room is packed, the ticket rail is full, and suddenly, your lead line cook shouts that the convection oven just died. Cold.

It’s the nightmare scenario every restaurateur dreads.

In this industry, your equipment isn’t just “hardware” – it’s the heartbeat of your operation. If the walk-in goes down, you lose inventory. If the fryer quits, you lose menu items. And if you lose those, you lose customers.

But here’s the thing: commercial kitchen gear is shockingly expensive. A decent range can cost as much as a used sedan, and don’t even get me started on HVAC hoods.

That’s where restaurant equipment financing comes in. It’s the bridge between “we need this now” and “we don’t have $20,000 cash sitting in the bank.”

Whether you’re a startup trying to outfit a ghost kitchen or a veteran owner replacing a 15-year-old dishwasher, understanding how to finance this metal is crucial.

At Eboost Partners, we see this every day. You know what? You don’t need perfect credit to get the gear you need. You just need a plan.

Let’s break down exactly how you can keep your kitchen running without draining your operating capital.

What Is Restaurant Equipment Financing?

Let’s keep this simple. Restaurant equipment financing is a type of small business funding specifically designed to help you purchase the physical assets your kitchen needs.

Think of it like a car loan, but for a pizza oven.

When you finance a car, the bank buys the car, and you pay the bank back over time. If you stop paying, they take the car. Equipment financing works the same way. because the loan is “self-collateralized” – meaning the equipment itself acts as security for the lender – it’s often much easier to qualify for than an unsecured term loan.

This is a massive advantage for new businesses or owners with less-than-stellar credit. Lenders are less nervous because, worst-case scenario, they can repossess the dough mixer.

But it’s not just about loans. It includes leasing options, lines of credit, and even using working capital to buy outright. The goal is always the same: get the gear on the line so it can start generating revenue to pay for itself.

If you are looking for a broader overview of how we help eateries, check out our guide on restaurant business loans.

What Restaurant Equipment Can Be Financed?

Honestly? Almost anything that isn’t nailed to the floor (and sometimes even things that are).

I’ve seen applications for everything from artisanal espresso machines to entire point-of-sale systems. Lenders understand that a restaurant is a complex machine with many moving parts. If it’s essential to your operation, there is likely a way to finance it.

Cooking Equipment

This is the heavy iron. It’s the most abused gear in the building and usually the most expensive to replace.

• Commercial Ranges & Ovens: From 10-burner monsters to specialized convection ovens.
• Deep Fryers: These break down constantly and are vital for fast-casual spots.
• Grills and Flattops: The workhorses of the diner world.
• Specialty Gear: Salamanders, steam kettles, and smokers.

Since these assets have a long usable life, they are prime candidates for equipment financing.

Refrigeration Equipment

You can’t serve food if you can’t keep it cold. Refrigeration is tricky because when it breaks, you aren’t just paying for repairs; you’re losing hundreds of dollars in spoiled produce and protein.

• Walk-in Coolers and Freezers: Often the most expensive single item in the back of the house.
• Reach-in Fridges: Line coolers, low-boys, and prep tables.
• Ice Machines: Surprisingly expensive and notoriously finicky.
• Blast Chillers: Essential for safety compliance in high-volume kitchens.

Ventilation & Safety Equipment

People often forget this part until the fire inspector shows up.

• Hood Systems: You legally cannot cook without them. A Type 1 hood system with fire suppression can easily run $1,000 per linear foot, not including installation.
• Dishwashing Units: High-temp conveyors or low-temp chemical machines.
• Grease Traps: Glamorous? No. Mandatory? Yes.

Other Commonly Financed Items

It doesn’t stop at the kitchen door.

• POS Systems: Modern POS hardware and software are expensive but vital for tracking data.
• Furniture: Tables, chairs, and booths.
• Food Trucks: Yes, the vehicle itself often counts as equipment.

Restaurant Equipment Financing Options

Not all money costs the same. Depending on your credit score, time in business, and cash flow, one of these paths will make more sense for you than the others.

Equipment Loans

This is the standard route. You find the equipment, get an invoice, and the lender pays the vendor. You then pay the lender back over a set term – at Eboost, we typically look at terms up to 24 months.

• Best for: Equipment you plan to keep for a long time (like a walk-in cooler).
• Ownership: You own the equipment once the loan is paid off.
• Down Payment: usually requires 10-20% down, though sometimes we can work around this.

Equipment Leasing

Leasing is more like renting. You pay a monthly fee to use the equipment. At the end of the term, you might have the option to buy it for fair market value, buy it for $1 (capital lease), or just send it back and upgrade to a newer model.

• Best for: Technology that goes obsolete quickly (like POS systems) or ice machines.
• Cash Flow: Often requires little to no money down.
• Tax Impact: Lease payments are often fully tax-deductible as an operating expense.

Merchant Cash Advance (For Fast Access)

Sometimes, you don’t have time for an appraisal. If your oven blows up on Tuesday and you need a new one by Thursday, a Merchant Cash Advance (MCA) is a lifesaver.

We look at your credit card sales or bank deposits and advance you a lump sum. You pay it back via a small percentage of your daily sales.

• Speed: fast funding.
• Flexibility: Payments fluctuate with your sales volume. Slow Tuesday? Lower payment.
• Resource: Learn more about how revenue-based financing works.

Business Lines of Credit

Think of this as a credit card with a huge limit and cash access. You get approved for a set amount (say, $50,000). You can draw $5,000 to buy a mixer, pay it back, and then draw $10,000 later for a freezer.

• Best for: Ongoing small purchases or renovations.
• Interest: You only pay interest on what you use.
• Details: Check out our lines of credit page for a deeper breakdown.

Restaurant Equipment Financing With Bad Credit

Here is the elephant in the room. The restaurant industry is volatile. Many amazing chefs have terrible FICO scores because of a failed venture five years ago or a rough patch during the off-season.

Does that mean you’re out of luck? Absolutely not.

How Bad Credit Approval Works

Because the equipment serves as collateral, lenders are less fixated on your personal credit score. If you default, they can repossess the equipment and resell it. This reduces their risk significantly.

At Eboost Partners, we look at the health of the business, not just your personal credit history. If your cash flow is strong – if you have consistent deposits and sales – that matters more to us than a number on a credit report.

Typical Bad Credit Requirements

If your score is below 650, here is what you should prepare for:

1. Proof of Revenue: We want to see 3-4 months of bank statements showing consistent income.
2. Down Payment: You might need to put a little more money down (think 20% instead of 0-10%) to lower the lender’s risk.
3. Shorter Terms: Instead of 5 years, you might be looking at 12 to 24 months. This actually helps you pay off the debt faster and free up cash flow sooner.

We specialize in business loans for bad credit, so don’t let a low score stop you from applying.

Costs & Rates: What to Expect

I’ll be honest with you – giving an exact rate without seeing an application is impossible. It’s like asking, “How much does a car cost?” It depends on the car, the driver, and the road conditions.

However, typically, rates for equipment financing are lower than unsecured loans because of that collateral factor.

Factors influencing your rate:

• Credit Score: Better score = lower rate.
• Time in Business: Startups are riskier than established joints.
• Equipment Type: Brand new equipment holds value better than used gear, often leading to better rates.
• Financials: Strong monthly revenue offsets bad credit.

At Eboost, we focus on affordability. We structure repayment terms up to 24 months with automatic daily or weekly payments. Why daily or weekly? Because that matches how restaurants earn money. You don’t make all your money on the 1st of the month; you make it every night. Small, frequent payments are often easier to manage than one giant monthly lump sum that hits right when payroll is due.

For a clearer picture of how financing costs impact your bottom line, reviewing your balance sheet vs income statement is a smart move before signing.

Pros & Cons of Equipment Financing

Everything in finance is a trade-off. Here is the unfiltered truth.

Pros

• Preserves Working Capital: This is the big one. Cash is oxygen. If you spend $30,000 cash on a renovation, that’s $30,000 you don’t have for marketing, payroll, or an emergency. Financing lets you keep your cash reserves intact.
• Tax Deductions (Section 179): The IRS has a beautiful rule called Section 179. It often allows you to deduct the full purchase price of the equipment from your gross income in the year you bought it, even if you are financing it. It’s a massive tax break that can effectively lower the “real” cost of the equipment.
• Builds Business Credit: Making timely payments on an equipment loan boosts your business credit profile, making it easier to get larger loans (like for a second location) down the road. Learn more about how to establish business credit.

Cons

• Total Cost is Higher: You are paying interest. A $10,000 oven might cost you $11,500 by the time you pay off the loan. You have to decide if having the oven now creates enough profit to cover that extra $1,500.
• You Don’t Own It (Yet): Until that final payment is made, the lender technically owns the gear. If you default, they come for it.
• Depreciation: Kitchen gear takes a beating. You might finish paying off a fryer just as it decides to break down for good.

How to Get Approved Faster

You want money fast? Help us help you. As someone who has reviewed hundreds of these files, I can tell you that speed usually comes down to organization.

1. Have the Invoice Ready: Don’t just say “I need $10k for a fridge.” Get a quote or invoice from the vendor. It makes the request tangible.
2. Organize 3 Months of Bank Statements: PDF format, all pages. We need to see the cash flow.
3. Know Your Numbers: Be ready to explain any weird dips in your account balance (e.g., “That low balance in February was because we paid our annual insurance premium”).
4. Check Your Personal Credit: You don’t need to fix it overnight, but know what’s on there so you aren’t surprised.

If you are ready to move, you can jump straight to our application page.

Common Mistakes Restaurant Owners Make

I’ve seen smart chefs make avoidable financial errors. Avoid these traps:

Buying Too Much “New”

Does your prep table need to be brand new? Probably not. Does your ice machine? Absolutely. Prioritize where you spend. Financing used equipment is possible and smart. Buying a slightly used stove can save you 40%, and the food tastes exactly the same.

Ignoring the “Install” Costs

I once had a client finance a massive pizza oven. He got the money, bought the oven, and then realized he didn’t have the $3,000 needed to upgrade his gas line and ventilation to handle it. Always factor in delivery, installation, and permit costs into your financing request.

Financing Short-Term Assets with Long-Term Debt

Don’t take a 5-year loan for smallwares (plates, forks) that will break in 6 months. Match the loan term to the life of the asset. That’s why our 24-month repayment terms are often the sweet spot for kitchen gear.

Your kitchen is a battlefield, and you need the best weapons you can get. Whether it’s a shiny new espresso machine to boost your morning ticket average or a reliable walk-in to save your inventory, don’t let a lack of cash hold you back.

Smart financing isn’t debt; it’s leverage. It’s using tomorrow’s profits to pay for today’s tools.

Ready to upgrade your line? At Eboost Partners, we offer loans from $5K to $2M with fast approvals and terms that respect your cash flow. Let’s get cooking.