Orchardpeak Business Funding, a small-business funding service in Stillwater, OK, explains how restaurants finance kitchen equipment: what counts as commercial cooking and kitchen equipment, buying new or used, loans versus leases, and what partners review. Payne County, OK had 61 full-service restaurants with employees in 2023.
So what makes kitchen equipment commercial?
Commercial kitchen equipment is built for continuous, high-volume use and to meet food-safety and fire-safety standards that home appliances do not. It falls into a few groups:
- Commercial cooking equipment: ranges, griddles, charbroilers, fryers, convection and combi ovens, steamers
- Refrigeration: walk-in coolers and freezers, reach-ins, prep tables, ice machines
- Ventilation: hoods, exhaust fans and fire suppression systems
- Warewashing and prep: dish machines, sinks, mixers, slicers
- Front of house: point-of-sale systems, beverage equipment, display cases
How to use commercial kitchen equipment well, from a financing view
Partners care about how equipment is used because it affects how long it lasts. Heavy daily use, cleaning and maintenance records, and the manufacturer's service network all bear on resale value, and resale value is what secures equipment financing. Keeping service records makes a future request, or a future sale of the equipment, easier.
Dealers, auctions and closing sales: buying commercial kitchen equipment
Restaurants buy from restaurant supply dealers, directly from manufacturers through dealers, at auctions and from closing restaurants. New equipment comes with warranties and dealer quotes partners can read easily. Used equipment is priced differently and needs more checking: age, hours, condition, and whether it fits the space and the utilities. Get a written quote or bill of sale either way.
Four ways restaurants pay for a kitchen line
| Option | How it works | Watch for |
|---|---|---|
| Equipment loan | You own it; the equipment secures the loan | Down payment, term vs useful life |
| Lease | You pay to use it; return, renew or buy at the end | End-of-lease terms |
| Dealer or manufacturer financing | Arranged at the point of sale | Compare total repaid with outside options |
| Merchant cash advance | Advance against card sales (not a loan) | Compare the total cost in dollars |
Hoods and walk-ins tied into the building may be treated as part of a buildout rather than movable equipment; that part may belong in a term loan.
Illustrative example: replacing a failed walk-in
Illustrative arithmetic only: a restaurant's walk-in cooler compressor fails and the replacement unit plus installation is quoted at $14,000. Financed as equipment, the payment spreads over the unit's useful life. Paid from an advance at a 1.35 factor, the same $14,000 costs $4,900 on top, collected from daily sales over a few months. The urgency is the same; the cost is not.
New versus used versus dealer-refurbished
New equipment brings warranties and predictable financing. Used equipment from a closing restaurant is priced differently from new, may need repairs and may come with no warranty. Refurbished equipment from a dealer sits in between and may carry a short warranty. Partners may consider all three, and may ask closer questions as the equipment gets older. Whatever you buy, check that it fits the space, the gas or electrical supply and the hood.
Ask the seller for the model and serial numbers before paying; partners will want them, and so will your service company.
Payne County, OK kitchens by the Census count
Payne County, OK had 61 full-service and 64 limited-service restaurants with employees in 2023, and only 18.0% of full-service restaurants had fewer than five employees (U.S. Census Bureau, County Business Patterns 2023). ZIP 74074 held 28 of the full-service restaurants (U.S. Census Bureau, ZIP Code Business Patterns 2023). These are working kitchens with staff on payroll.
More on restaurant funding: the restaurant page. County data: the Stillwater, OK page. More articles: the blog.
By Orchardpeak Business Funding · Updated