Commercial Kitchen Equipment Financing

Commercial kitchen equipment is one of the largest capital investments in the food service industry. Here is how to finance it efficiently.

Commercial kitchens are equipment-intensive by nature. From walk-in refrigerators and industrial ovens to ventilation systems and prep stations, outfitting a professional kitchen can cost $50,000 to $300,000 or more. Equipment financing makes these investments manageable without draining your working capital.

What Commercial Kitchen Equipment Can Be Financed?

Cooking equipment: Commercial ovens, ranges, fryers, grills ($5,000--$50,000+)
Refrigeration: Walk-in coolers and freezers, under-counter units ($3,000--$30,000)
Food prep equipment: Mixers, slicers, processors ($1,000--$15,000)
Ventilation systems: Hood fans and suppression systems ($10,000--$50,000)
Dishwashing systems: Commercial dishwashers ($5,000--$20,000)
Complete kitchen packages: Full build-outs $100,000--$500,000+

How Commercial Kitchen Equipment Financing Works

Equipment financing provides a loan or lease specifically for commercial equipment. The equipment itself serves as collateral, which lowers lender risk and makes approvals more accessible. Key terms:

Loan amounts: Typically equal to 80%--100% of equipment cost
Repayment terms: 2--7 years depending on equipment life
Down payment: Often $0 with good credit
Rates: Typically 6%--20% APR depending on creditworthiness

Equipment Loan vs. Equipment Lease

You can finance commercial kitchen equipment two ways:

Equipment loan: You own the equipment outright after paying off the loan. Better for long-lasting items you plan to keep 5+ years.
Equipment lease: Lower monthly payments, easier to upgrade. Better for technology-driven equipment that becomes outdated.

Who Qualifies for Kitchen Equipment Financing?

Restaurants, cafes, bakeries, catering companies, food trucks
Ghost kitchens and commissary kitchens
Hotels, healthcare facilities, and institutional kitchens
Credit score of 600+ preferred; some lenders work with 580
As few as 6 months in business with equipment as collateral

Getting Additional Working Capital

Beyond equipment, new food service businesses often need working capital for initial inventory, staffing, and marketing. A business line of credit or working capital loan can complement your equipment financing. Use our loan calculator to model combined payments.

Approvd connects restaurant and food service operators with equipment lenders across our network. Check your options for commercial kitchen equipment financing with no credit impact.

Frequently Asked Questions

Can a startup restaurant get equipment financing?

Yes. Most equipment lenders work with startups because the equipment secures the loan. You'll generally need a credit score of 600+ and may need a 10%--20% down payment.

Is leasing or buying commercial kitchen equipment better?

Buying is better for long-lived equipment you'll use for 7+ years. Leasing is better for technology-intensive equipment or when you want lower monthly payments and upgrade flexibility.

How fast can I get equipment financing?

Equipment financing can typically be approved and funded in 2--5 business days for qualified borrowers.

Why Commercial Kitchen Equipment Financing Makes Sense

Commercial kitchen equipment is expensive, essential, and depreciable — making it an ideal candidate for equipment financing. A fully equipped commercial kitchen for a mid-sized restaurant can cost $100,000–$300,000 or more, covering ranges, ovens, refrigeration systems, prep equipment, dishwashing systems, ventilation, and smallwares. Few restaurant owners have that capital available in cash, and even those who do often find that financing equipment preserves working capital for the inventory, staffing, and marketing that actually drives revenue.

Equipment financing for commercial kitchens is accessible even for newer restaurant businesses because the equipment itself serves as collateral. Lenders can assess the value of commercial kitchen equipment (which has an established secondary market) and structure loans accordingly. This collateral-based underwriting often allows approval at lower credit scores than unsecured lending would require.

Commercial Kitchen Equipment Cost Guide

Equipment Category	Budget Range	Useful Life	Financing Term
Commercial Range / Oven	$3,000–$20,000	10–15 years	36–60 months
Walk-In Refrigeration	$5,000–$30,000	15–20 years	48–72 months
Commercial Dishwasher	$3,000–$15,000	8–12 years	36–60 months
Ventilation / Hood System	$5,000–$30,000	15–20 years	48–72 months
POS System	$1,000–$10,000	3–5 years	24–36 months
Complete Kitchen Package	$50,000–$300,000	Varies by item	60–84 months

New vs. Used Equipment Financing

Both new and used commercial kitchen equipment can be financed, though lenders apply different advance rates. New equipment typically qualifies for 100% financing. Used equipment — bought from dealers, auctions, or restaurant liquidators — is financed at 60–80% of appraised value, reflecting the higher uncertainty in resale value. For startups with tight capital, used equipment financed at 70% may be more accessible than new equipment at full price.

Equipment leasing is a particularly popular option in the food service industry because it allows access to high-quality equipment with lower monthly payments and the flexibility to upgrade as business grows. Leases can also include maintenance provisions, which is valuable for complex equipment like refrigeration systems and commercial dishwashers where repair costs can be significant.

Tax Advantages of Equipment Financing

Commercial kitchen equipment qualifies for Section 179 expensing, allowing you to deduct the full cost of the equipment in the year of purchase rather than depreciating it over its useful life. In 2025, the Section 179 limit is $1,160,000 — far more than most restaurant equipment purchases. This means if you finance a $150,000 kitchen equipment package, you can potentially deduct the full $150,000 in year one, creating a significant tax benefit that effectively reduces your net equipment cost.