Multi-unit operators get the best terms in restaurant equipment financing — 6.5%-12% APR on equipment loans, 8.5%-11% on SBA 7(a). With 2+ locations of operating history, lenders treat you as a known commodity. Master credit facilities ($500K-$5M revolving) become available, letting you draw equipment financing as needed for new builds or refreshes without re-applying. EFA programs at restaurant-vertical lenders (Beacon Funding, eLease) become more attractive for standardized equipment buys across locations.
The single biggest underwriting factor — 12 months unlocks dramatically better rates.
Down payment
Cash up front. 0–10% standard for established operators; 20–30% for higher-risk profiles.
Personal guarantee
You personally guarantee repayment. Standard for sub-$250K equipment financing.
DSCR (debt-service coverage)
Monthly cash flow / monthly debt payment. Lenders want ≥1.25 — meaning $1.25 in cash flow for every $1 of debt service.
10%–24%Typical APR Range
15%–25%Common Down
24–60 moTerm Range
580–650Min Credit
60%–85%Approval Odds
What lenders actually look at for this profile
For operator with 2+ locations, lenders weight: personal credit (FICO 580+ minimum), down payment (15–25% range), supporting documentation (business plan, bank statements, equipment quote). Decision in 24–72 hours typically.
Routes that work
1. Restaurant-vertical equipment lenders (Beacon Funding, eLease, Crest Capital). 2. Vendor financing through equipment dealers. 3. SBA microloan (up to $50K). 4. Equipment Finance Agreement (EFA). 5. Personal loan or business credit card as bridge financing.
Common decline reasons (and what to do)
Top reasons: revenue too thin (wait 2-3 months, build statement history), credit too low (pay down revolving 30+ days before applying), loan size > 20% of revenue (reduce ask or increase down), industry concentration (rotate to different lender). Decline doesn't mean no — it usually means 'not at this price.'
How to negotiate the rate down
Get 3+ quotes before signing. Use competing quotes as leverage — most lenders match within 1-2% if you have a written competing offer. Higher down payment (25%+) usually unlocks 2-4% APR reduction. Co-signer with 700+ credit can shave another 2-3%.
Equipment Financing Calculator
Estimate your monthly payment based on equipment cost, down payment, interest rate, and loan term.
Loan Amount—
Monthly Payment—
Total Interest—
Total Cost—
Frequently Asked Questions
What's the minimum credit score I need?
Most restaurant-vertical lenders approve at 580+ with the right deal structure. Best rates require 680+. Sub-580 typically routes to vendor financing through equipment dealers.
Do I need a business plan?
For loans under $50K with established credit, usually no. For loans above $50K or first-year operators, yes — even a 2-page summary improves approval odds.
Can I get financing without a personal guarantee?
For loans under $250K, almost never. Personal guarantee is standard regardless of business structure.
How long until I'll qualify for better rates?
12 months in business is the biggest threshold — at that point, rates typically drop 4-8%. 24 months unlocks SBA 7(a) at the lowest rates available.
Ready to Get Funded?
Compare offers from multiple equipment lenders in one application.
Disclosure: Some links on this page are affiliate links. We may earn a commission when you complete a financing application via our partner. This does not change your rate or terms. We are not a lender, broker, or financial advisor.
VI
Reviewed by Vlad Ivanov AI+SEO operator at wordsatscale.com. 9 GSC-verified sites; founder of the SearchGAP Method community. Bio + portfolio at wordsatscale.com.
