In addition to having delicious cuisine and a prime location, opening or growing a restaurant requires a significant investment in high-quality equipment. From espresso machines to commercial ovens and freezers, the costs can add up quickly. That’s where business loans for restaurant equipment come into play.

These specialized financing options allow restaurant owners to purchase or upgrade essential equipment without draining their cash flow. Whether you're launching a new restaurant, renovating your kitchen, or replacing old appliances, equipment financing can help keep your operations running smoothly.

What Can You Finance?

Equipment loans cover a wide range of physical assets required in day-to-day restaurant operations. Here are just a few examples of what you can finance:

• Cooking Equipment: Commercial grills, ovens, fryers, and ranges
• Cold Storage: Commercial refrigerators, freezers, and walk-in coolers
• Cleaning Equipment: Dishwashers, sinks, and sanitation systems
• Technology: POS systems and restaurant management software
• Beverage Equipment: Coffee machines, espresso makers, and drink dispensers
• Prep & Furniture: Food processors, mixers, prep tables, chairs, and dining tables
• Specialty Items: Bar equipment, buffet stations, and even delivery vans or food trucks

Types of Restaurant Equipment Financing

Depending on your financial goals and credit profile, there are several financing methods available:

1. Equipment Loans

These are traditional term loans where you receive a lump sum to purchase specific equipment. You repay the loan in fixed monthly installments over a set term, typically 1 to 5 years. After the loan is paid off, the equipment is fully yours.

2. Equipment Leasing

Instead of purchasing equipment outright, leasing allows you to rent it for a monthly fee. At the end of the lease, you may have the option to buy, renew the lease, or upgrade to newer equipment. Leasing is a great option for equipment that depreciates quickly or requires frequent upgrades.

3. Vendor Financing

Some equipment manufacturers and suppliers offer direct financing to buyers. While it’s a convenient option, always compare terms with those from banks or lenders to ensure you're getting the best deal.

Who Can Qualify for Restaurant Equipment Loans?

While eligibility criteria can vary by lender, most institutions evaluate the following:

• Time in Business: Lenders often prefer businesses that have been operational for at least 6 to 12 months.
• Revenue: A stable monthly or annual income can help you qualify for better loan terms.
• Credit Score: A score of 650+ is ideal, but many lenders work with those who have fair or even challenged credit.
• Down Payment: Some lenders offer 100% financing, while others may require a 5–20% down payment.
• Collateral: The financed equipment often acts as the collateral, eliminating the need for additional assets.

Whether you're upgrading to modern, energy-efficient equipment or outfitting a brand-new restaurant, having access to the right financial tools can make all the difference.

Planet Financial helps restaurant owners in Brampton, Mississauga, Vaughan, and across the GTA secure flexible business loans for restaurant equipment. Let us help you equip your kitchen with confidence and ease!