What numbers should I compare?
The repair cost, the remaining expected life after repair, the cost of a new unit, energy savings from a new model, and the cost of future downtime if the old unit keeps failing.
A common rule of thumb is to consider replacing when a repair costs a large share of a new unit and the unit is past much of its expected life. Your own repair history matters more than any general rule.
Track repairs per unit in a simple log. Patterns become obvious.
What about energy and efficiency?
Newer refrigeration, fryers and dish machines often use less energy and water. Savings can offset part of a replacement cost.
Some utilities offer rebates for efficient commercial kitchen equipment. Check before buying.
How does funding change the decision?
When cash is tight, owners often choose the cheaper repair even when replacement makes more sense. Funding lets you choose the better long-term option.
Compare the total cost of funding a replacement with several more repairs and downtime. The cheaper-now option is not always cheaper overall.
| Factor | Favors repair | Favors replace |
|---|---|---|
| Age | Early in life | Late in life |
| Repair history | First repair | Repeated repairs |
| Parts | Available | Obsolete |
| Efficiency | Similar to new | Much worse |
Worked example: a third repair on an old fryer bank
A restaurant averaging $96,000 in monthly deposits faces a third repair this year on an aging fryer bank and decides to replace it for $15,000 instead of paying for another repair. Using an illustrative factor rate of 1.21, $15,000 would mean $18,150 repaid over roughly 5 months: 105 daily payments of about $173.
That works out to about $3,630 a month, or 3.8% of the $96,000 this business deposits monthly, and the total cost of the money is $3,150. Ending repeated repairs and downtime often makes replacement the cheaper long-term choice.
For comparison, repaying the same $18,150 over 3 months would lift the monthly outlay to about $6,050, or 6.3% of deposits, and because shorter terms often carry a lower factor rate in practice, it is worth asking to see both before choosing.
| Average monthly deposits | $96,000 |
|---|---|
| Amount funded | $15,000 |
| Factor rate (illustrative) | 1.21 |
| Total repaid | $18,150 |
| Cost of the funding | $3,150 |
| Term | about 5 months |
| Daily payment (105 payments) | $173 |
| Payments as a share of deposits | 3.8% |
Who this fits
Usually a fit
- Kitchens with repeatedly failing equipment
- Owners weighing repair vs replacement
- Operators wanting efficiency gains
When to hold off
- First minor repairs on newer units
- Owners with reserves
- New kitchens without deposit history
What you’ll typically need
- Recent business bank statements
- Repair and replacement quotes
- Business details
Frequently asked questions
Is there a standard repair threshold?
Rules of thumb exist, but your repair history matters most.
Are rebates available?
Some utilities offer them; check locally.
How long does approval take for a replacement unit?
Requests to fund a replacement unit usually get a decision the same day when the file is complete, and funding commonly follows in a business day or two.
Can lower credit still get a replacement unit covered?
Often, yes. A kitchen owner with a score from 500 can apply for a replacement unit, and as credit improves the offers generally get better.
Deciding repair or replace?
Apply and choose freely.
Updated October 6, 2026