Best funding for a restaurant that needs new equipment
Figures verified 2026-09-21
For a restaurant buying equipment the realistic route is revenue-based financing — 600 FICO, 6 months in business and $60,000 a year is the floor, and it reads your deposits rather than your credit file. If you have 3 years and $300,000 a year, a bank-style line of credit is materially cheaper: $10,000–$350,000 from 1% a month. Restaurants qualify on the standard terms; there is no restaurant surcharge.
Which product fits an equipment purchase
A line of credit suits a kitchen being rebuilt in stages — draw for the walk-in now, the range next month, and only pay on what you have drawn ($10,000 minimum draw, 2.49% draw fee). A term loan suits a single purchase with a known price, but it funds in first position only and is capped at 15% of your annual revenue. Revenue-based financing sits behind an existing advance where the other two will not.
What you need to qualify
| Program | Min FICO | Min time in business | Min revenue | Positions allowed |
|---|---|---|---|---|
| Revenue-based financing | 600 | 6 months | $60,000/yr | Up to 2 |
| Bank-style line of credit | 650 | 3 years | $300,000/yr | Up to 2 |
| Bank-style term loan | 650 | 3 years | $300,000/yr | First position only |
| Renewal of an existing advance | 550 | 2 years | Set by the original | No add-on if another position exists |
How much, and on what terms
| Product | Amount | Term | Cost and conditions |
|---|---|---|---|
| Line of credit | $10,000 – $350,000 | 12–36 months | From 1%/mo, 2.49% draw fee, $10,000 minimum draw |
| Term loan | $10,000 – $250,000 | 12–18 months | 0% origination; capped at 15% of annual revenue |
| Revenue-based financing | Set by monthly deposits | Varies | Repaid as a share of receipts |
What your bank statements have to show
| Measure | Threshold | Applies to |
|---|---|---|
| Minimum average daily balance | $800 | revenue-based |
| Minimum average balance | $5,000 or 10% of monthly revenue, whichever is greater | bank-style |
| Deposits per month | 8 or more | bank-style |
| NSFs per month | 6 maximum (24 per rolling 6 months) | bank-style |
| NSFs + negative days per month | 5 maximum combined | revenue-based |
| Negative days per month | 3 maximum (9 per rolling 6 months) | bank-style |
Common questions
Can I get restaurant equipment financing with bad credit?
Do I need to put money down on restaurant equipment?
How fast can a restaurant get equipment money?
Does it matter if the equipment is used or refurbished?
Why we publish our numbers
Most pages answering this question give you a range and tell you to call. These are the actual thresholds an application is measured against, so you can tell before you apply whether you clear them. They are reviewed and updated here when they change.