Why doesn’t equipment financing fit repairs?
Lenders finance a tangible asset they can secure. Repair labor and parts installed in an existing unit are hard to secure.
Equipment financing also takes longer: quotes, vendor invoices and documentation. For an emergency, speed matters.
For a planned purchase of new equipment, though, equipment financing can be a good fit.
When is working capital better?
For repairs, mixed costs like rentals and installation, used equipment from small dealers, and urgent timelines.
One working capital amount can cover a repair, a rental and lost product together.
Leasing is a third option for new equipment, though it rarely fits a repair. Leases spread payments over the equipment’s life and may include an end-of-term buyout. For a kitchen whose priority is getting a failed unit fixed this week, a lease adds paperwork and time without solving the immediate problem.
Look at the total cost of each option over the same period, including fees, and at the speed you need. For urgent repairs, speed and flexibility usually decide it.
Can I use both?
Yes. Some kitchens finance a new unit with equipment financing and use working capital for installation and related costs.
Disclose all financing when applying.
| Need | Equipment financing | Working capital |
|---|---|---|
| New unit purchase | Good fit | Also works |
| Repair labor and parts | Poor fit | Good fit |
| Rentals and lost product | Not covered | Covered |
| Urgent timeline | Slower | Faster |
Worked example: repair plus rental
A restaurant averaging $102,000 in monthly deposits needs a $9,000 walk-in repair plus a $1,500 trailer rental and $2,500 in replacement product, $13,000 total. Using an illustrative factor rate of 1.20, $13,000 would mean $15,600 repaid over roughly 4 months: 84 daily payments of about $186.
That works out to about $3,900 a month, or 3.8% of the $102,000 this business deposits monthly, and the total cost of the money is $2,600. One working capital amount covers all three costs, which equipment financing could not.
For comparison, repaying the same $15,600 over 2 months would lift the monthly outlay to about $7,800, or 7.6% of deposits, and whether the faster payoff is worth that bigger payment depends on how steady your slow months are.
| Average monthly deposits | $102,000 |
|---|---|
| Amount funded | $13,000 |
| Factor rate (illustrative) | 1.20 |
| Total repaid | $15,600 |
| Cost of the funding | $2,600 |
| Term | about 4 months |
| Daily payment (84 payments) | $186 |
| Payments as a share of deposits | 3.8% |
Who working capital fits
Usually a fit
- Kitchens with repairs and mixed costs
- Urgent timelines
- Used equipment purchases
When to hold off
- Planned new purchases with time for equipment financing
- Owners with reserves
- New kitchens without deposits
What you’ll typically need
- Recent business bank statements
- Repair quotes
- Business details
Frequently asked questions
Is equipment financing cheaper?
Often for new equipment; it is less suited to repairs.
Can working capital buy new equipment?
Yes; it can be used for any business purpose.
How long does approval take for a repair plus rental?
Requests to fund a repair plus rental usually get a decision the same day when the file is complete, and funding commonly follows in a business day or two.
Does a 500 credit score rule me out for a repair plus rental?
No. Applicants from 500 can be reviewed for a repair plus rental; the deposit history does most of the work, and better credit typically improves the terms you are offered.
Repair plus extras?
Apply for working capital.
Updated October 6, 2026