Easily Finance New & Used Restaurant Equipment

Instant Credit Approvals from $500 - $15,000
At City Food Equipment, we make financing restaurant equipment easy and accessible whenever you need it. Our application process is available 24/7, and takes just three minutes to complete.
Once approved, you’ll have the flexibility to choose the payment term that best suits your budget. If you're approved for more than you initially requested, our user-friendly calculator helps you understand how your payments will adjust if you decide to add more items to your lease.
With eDocs available instantly, you can order your new equipment within minutes, ensuring a seamless and efficient purchasing experience!
Why Finance with Us?
City Food Equipment has partnered with Approve Financing to provide your business with commercial restaurant equipment and supplies for a low monthly payment. We even provide options for financing used restaurant equipment.
Financing is quick and easy, and you can get what you need at an affordable monthly rate.
GET AN INSTANT CREDIT APPROVAL TODAY with no hard credit pull and no documents required.
All Credit Scores Welcome
Whether you have great credit or bad credit, we have a solution.
Instant Approvals of Up To $15,000
As good as cash in hand, not just a pre-qualified amount.
Flexible Payment Terms
Choose the payment and lease term that best fits your budget.
No Hard Credit Pull
Risk-free application and no impact to your personal credit score.
Lightning-Fast Process
Complete the entire purchase in less than 10 minutes.
Potentially Tax-Deductible
Your lease payments may qualify as a business expense, which could mean a nice tax write-off next tax season. *
*Note: City Food Equipment makes no guarantees that every equipment lease will be tax-deductible. This is at the sole discretion of the Internal Revenue Service (IRS). We recommend consulting your financial advisor to verify any and all tax implications regarding the terms of your agreement.
How Restaurant Equipment Financing Works
Restaurant equipment financing involves borrowing funds from a lender to purchase or lease equipment. Instead of paying the full purchase price upfront, you make regular payments over a predetermined period, with interest.
Equipment financing helps spread those costs over time, allowing the restaurant owner to maintain cash flow for operational expenses and capitalize on growth opportunities.
Basic Restaurant Equipment Financing Options
Understanding the basics of restaurant equipment financing lays the foundation for making informed decisions.
Leasing, often with lower monthly payments, allows you to use equipment without owning it. It involves a fixed monthly payment for a specific duration, after which you can return or purchase the equipment.
On the other hand, a restaurant equipment loan provides a lump sum to buy equipment outright. Repayment occurs over a defined term, with interest rates depending on your credit score and the lender's terms.
Whether you opt for leasing, loans, or vendor financing, thoroughly assessing your needs and financial standing will guide you toward the most suitable option.
A strong credit score typically leads to better loan terms and lower interest rates, underscoring the importance of maintaining good credit for favorable financing options.
Restaurant Equipment Leasing vs. Loans vs. Supplier Financing
When comparing restaurant equipment financing options, consider these factors:
Leasing: Ideal for a small business seeking lower monthly payments and tax benefits, as a restaurant equipment lease is often deductible as business expenses. However, you won't own the equipment unless you exercise a purchase option at the end of the lease.
Loans: Suitable for established businesses with good credit scores aiming for equipment ownership. Loans typically come with longer repayment periods and potentially more favorable terms compared to leasing, but may require collateral.
Supplier Financing: Offered directly by equipment vendors, streamlining the process but potentially at higher interest rates. Assess the terms carefully. Choosing the optimal financing option depends on your financial strength, risk tolerance, and long-term business goals.
If preserving capital is paramount and equipment obsolescence is a concern, a restaurant equipment lease may be advantageous.
Conversely, established businesses seeking ownership and potentially lower overall costs might favor loans.
What You Need to Know Before You Apply for Restaurant Equipment Financing
Navigating the equipment financing application process requires understanding the key factors lenders assess when considering your business loan.
Firstly, maintaining a healthy credit score is crucial. Lenders view your credit score as an indicator of your financial responsibility and ability to repay the loan, influencing the interest rates and terms offered.
Secondly, be prepared to provide a detailed business plan outlining your restaurant concept, marketing strategy, and financial projections. A compelling plan demonstrates your understanding of the industry and potential for success, assuring lenders of your ability to repay the loan.
Finally, transparency about your restaurant's financials, including revenue, food cost, expenses, and existing debts, is vital.
Accurate and organized financial records build trust with lenders and demonstrate your ability to manage debt effectively.
Qualifications for Restaurant Equipment Financing
Qualifying for restaurant equipment financing often involves meeting certain lender-set criteria, which typically encompass both your personal and business financial history to provide a complete picture of your repayment ability.
Factors like your business's financial stability, industry experience, and the loan amount requested play a significant role.
Additionally, your personal credit score can be a determining factor, highlighting the importance of maintaining good credit for more favorable financing offers.
Credit Scores and Business History
Your credit score significantly impacts your ability to secure business financing. Lenders perceive borrowers with higher credit scores as lower risk, often offering them lower interest rates and more favorable loan terms.
While the minimum credit score requirement varies among lenders, maintaining a score above 650 is generally advisable.
Equally important is demonstrating a positive business history.
Lenders look for businesses with a track record of profitability, responsible debt management, and growth potential.
Providing detailed financial statements, tax returns, and a sound business plan showcasing your restaurant's success can strengthen your application.
If your business is relatively new or you have a limited credit history, consider seeking startup loans or alternative financing options with more flexible requirements.
Revenue
Your restaurant's revenue is a crucial factor lenders consider. They want assurance that your business generates sufficient cash flow to cover loan repayments comfortably alongside operational expenses.
To determine your repayment ability, lenders assess your net income – the difference between revenue and expenses.
Higher and more consistent revenue generally translates to more favorable loan options with lower interest rates and longer repayment terms.
Providing detailed financial records demonstrating a healthy cash flow and strong revenue growth potential strengthens your application and portrays your business as a worthwhile investment.
To improve your chances of securing restaurant financing, focus on strategies to boost revenue, optimize pricing, and control expenses, showcasing a healthy financial trajectory to potential lenders.
Applying for Restaurant Equipment Financing (Step-by-Step Guide)
Applying for restaurant equipment financing doesn't have to be overwhelming. A systematic approach ensures you provide all necessary information to lenders and strengthens your application. Here’s how you’re going to want to go about it:
Step 1: Assess Your Financing Needs
Start by evaluating your restaurant’s current financial health. Review income statements, cash flow, and revenue trends to assess your ability to take on additional debt. Define your goals for acquiring equipment (e.g., expanding, upgrading, replacing) and calculate the potential ROI. This will help determine the exact amount you need and justify the investment to lenders.
Step 2: Research Financing Options
Explore the financing options available, including small business loans, equipment leasing, or supplier financing. Compare interest rates, terms, and repayment options. Identify the one that best aligns with your restaurant’s goals and cash flow, whether you're looking for flexibility or lower upfront costs.
Step 3: Prepare Documentation
Gather all necessary documents, including personal financial statements, business licenses, tax returns, bank statements, and a detailed business plan. Organize them into a clear, cohesive package that presents a comprehensive view of your business’s financial situation. Having these documents ready shows lenders you're prepared and serious about securing financing.
Step 4: Improve Your Creditworthiness
Before applying, ensure both your personal and business credit scores are in good shape. If there are any inaccuracies, address them early to boost your chances of approval. Demonstrating a solid financial track record and timely bill payments can help you secure better interest rates and terms.
Step 5: Complete the Application
Once you’ve chosen a lender, fill out their application, ensuring all fields are completed accurately. Attach all required documents and include any additional materials that support your business case, such as cash flow projections or sales forecasts. Double-check for errors, as small mistakes could delay the process.
Step 6: Submit and Follow Up
Submit the application and stay engaged with the lender during the review process. Be available to answer any questions or provide further documentation. Following up demonstrates professionalism and highlights your commitment to the process, which a lot of times helps ensure a timely review of your application. By following these steps, you increase your chances of securing the necessary funding and advancing your restaurant's growth.
Frequently Asked Questions (FAQs)
What are the benefits of choosing leasing over loans?
Leasing offers lower monthly payments, improving cash flow, and often comes with tax benefits, as payments can be deducted. Additionally, leasing doesn't usually require collateral, making it accessible to startups or businesses with limited assets.
Can I qualify for financing with a low credit score?
While a low credit score may make qualifying for traditional loans challenging, some online lenders specialize in financing solutions for borrowers with less-than-perfect credit. Note that these options might come with higher interest rates.
What documents are typically required to finance restaurant equipment?
Lenders typically require financial statements, tax returns, bank account information, and a detailed business plan. The application form might also require a personal guarantee.
How can I preserve cash flow while financing restaurant equipment?
Opting for financing options with lower monthly payments, such as a lease with an extended repayment period, can help preserve cash flow and allow for better management of operational expenses.
Are there tax advantages to equipment financing?
Yes. Equipment financing often provides tax benefits. Lease payments are generally deductible as business expenses. Additionally, certain types of financing might offer deductions for the depreciation of equipment costs over time.