When does used equipment make sense?
Simple equipment with few moving parts, like stainless tables, sinks, shelving, and some ranges, often buys well used. Refrigeration and complex equipment carry more risk.
Buy from dealers who test equipment and offer short warranties. Check model numbers for parts availability.
Inspect refrigeration compressors and seals closely, or skip used refrigeration altogether.
When is new the better choice?
High-use, high-failure equipment like refrigeration, dish machines and fryers often justify new units with warranties and better efficiency.
Warranties shift repair risk to the manufacturer for the first period of ownership, which can matter for budgeting.
Check utility connections before buying any replacement. A used gas range may need a different connector, and a new unit may require a different electrical circuit. Installation surprises can erase savings. Ask the seller for specifications and compare them with your current hookups.
How does funding affect the choice?
Funding makes new equipment possible when cash is tight, letting you choose based on long-term cost rather than what is cheapest today.
Compare the total cost of a used unit plus likely repairs with a funded new unit.
| Equipment | Used | New |
|---|---|---|
| Stainless tables, sinks | Good choice | Rarely needed |
| Ranges | Often fine | For heavy use |
| Refrigeration | Risky | Usually better |
| Dish machines, fryers | Risky | Usually better |
Worked example: new refrigeration, used shelving
A café kitchen averaging $88,000 in monthly deposits replaces a failed double-door reach-in with a new unit and buys used shelving, totaling $10,500. Using an illustrative factor rate of 1.20, $10,500 would mean $12,600 repaid over roughly 4 months: 84 daily payments of about $150.
That works out to about $3,150 a month, or 3.6% of the $88,000 this business deposits monthly, and the total cost of the money is $2,100. Spending on new where failure risk is high and saving on used where it is low balances cost and reliability.
For comparison, repaying the same $12,600 over 2 months would lift the monthly outlay to about $6,300, or 7.2% of deposits, so ask for both terms in writing; the shorter one frequently prices lower even though each payment is larger.
| Average monthly deposits | $88,000 |
|---|---|
| Amount funded | $10,500 |
| Factor rate (illustrative) | 1.20 |
| Total repaid | $12,600 |
| Cost of the funding | $2,100 |
| Term | about 4 months |
| Daily payment (84 payments) | $150 |
| Payments as a share of deposits | 3.6% |
Who this fits
Usually a fit
- Kitchens replacing failed equipment
- Owners balancing cost and reliability
- Operators wanting warranties on critical units
When to hold off
- Owners with reserves
- Non-urgent upgrades
- New kitchens without deposit history
What you’ll typically need
- Recent business bank statements
- Equipment quotes
- Business details
Frequently asked questions
Can funding buy used equipment?
Yes; working capital can buy new or used equipment.
Do used dealers offer warranties?
Some do; ask.
How quickly can money for replacement equipment arrive?
Most kitchen files get a same-day decision once bank statements are uploaded, and approved money for replacement equipment often lands within one or two business days.
Can lower credit still get replacement equipment covered?
Often, yes. A kitchen owner with a score from 500 can apply for replacement equipment, and as credit improves the offers generally get better.
Replacing equipment?
Apply and choose wisely.
Updated October 6, 2026