Upgrade equipment, expand locations, and grow your franchise with flexible equipment financing. Preserve cash flow while getting the tools you need.
Finance the full equipment cost without touching your working capital
Get approved in 24-48 hours for equipment under $150K
Section 179 deductions and bonus depreciation available
Calculate monthly payments for restaurant equipment, POS systems, vehicles, and more
Calculate payments for restaurant equipment, vehicles, technology, and more
Connect with equipment financing specialists who understand franchise operations. Get competitive rates and fast approval for your expansion needs.
| Feature | Equipment Loan | Equipment Lease | Cash Purchase |
|---|---|---|---|
| Ownership | ✓ You own immediately | Option to purchase | ✓ You own immediately |
| Down Payment | 0-20% | First payment only | 100% upfront |
| Tax Benefits | Section 179 + depreciation | Lease payments deductible | Section 179 + bonus depreciation |
| Cash Flow Impact | Preserves working capital | Lowest monthly payments | Major cash outlay |
| Total Cost | Higher than cash | Highest if you buy out | Lowest total cost |
| Best For | Long-term use, ownership | Technology, short-term needs | Strong cash position |
Equipment financing allows you to purchase necessary equipment for franchise expansion while preserving working capital. You typically finance 80-100% of the equipment cost with the equipment itself serving as collateral. Monthly payments are spread over 2-7 years depending on equipment type. This lets you generate revenue from new equipment while paying for it over time.
Equipment financing rates for established franchises typically range from 6-15% depending on credit score, equipment type, and loan term. New equipment generally gets better rates (6-10%) than used equipment (10-15%). Technology equipment may have higher rates due to depreciation. Strong franchise brands and good credit can secure rates on the lower end of these ranges.
Yes, many lenders offer 100% equipment financing for qualified franchise owners. This is especially common for new equipment purchases and established franchise brands. Some lenders may require 10-20% down for used equipment or higher-risk borrowers. The equipment itself serves as primary collateral, making 100% financing more accessible than other loan types.
Equipment financing approval can be very fast. For equipment under $150,000, many lenders provide decisions within 24-48 hours and funding within a week. Larger equipment purchases ($150K+) typically take 1-2 weeks. Having complete financial documentation and working with franchise-experienced lenders speeds up the process significantly.
Common franchise equipment financing includes: restaurant equipment (ovens, fryers, POS systems), vehicles (delivery trucks, service vans), technology (computers, software, digital signage), fitness equipment, medical devices, manufacturing machinery, and complete kitchen buildouts. Essentially any equipment that generates revenue or is required for operations can be financed.
Yes, you can finance equipment for multiple locations through a single loan or multiple coordinated loans. This is common for franchise owners opening several locations simultaneously or upgrading equipment across their portfolio. Multi-location financing often provides better rates and terms due to the larger loan amount and diversified cash flow.
This depends on your franchise agreement. Many franchisors require approval for major equipment changes or financing that could affect operations. However, routine equipment upgrades and replacements typically don't require approval. Review your franchise agreement and consult with your franchisor before financing non-standard equipment.
Yes, used equipment can be financed, though terms may be less favorable than new equipment. Lenders typically finance used equipment up to 5-7 years old with higher rates and shorter terms. Used restaurant equipment, vehicles, and manufacturing equipment are commonly financed. The equipment must be in good working condition and have sufficient remaining useful life.
Finance equipment when: you need to preserve cash flow for operations, the equipment generates immediate revenue, you can deduct interest payments, or interest rates are low. Pay cash when: you have excess cash not needed for operations, you want to avoid debt payments, or you can negotiate significant cash discounts. Most franchise owners benefit from financing to maintain liquidity.
Calculate equipment ROI by comparing the additional revenue/cost savings generated against the total financing cost. For example: if $100K equipment generates $30K additional annual profit and costs $15K annually to finance, your net benefit is $15K (15% ROI). Include tax benefits, increased efficiency, and reduced labor costs in your calculation.
Major tax benefits include: Section 179 deduction (up to $1.16M in 2024), bonus depreciation (additional first-year deduction), regular depreciation over equipment life, and deductible interest payments. These benefits can significantly reduce the effective cost of equipment financing. Consult with a tax professional to maximize your deductions.
Consider leasing for: technology that becomes obsolete quickly, equipment you'll use short-term, when you want lower monthly payments, or when you prefer to upgrade regularly. Choose financing when: you'll use equipment long-term, you want ownership benefits, the equipment holds value well, or you want to build business equity.
Most equipment lenders require a minimum credit score of 650-680, though some accept scores as low as 600 for strong franchises. Scores above 720 typically qualify for the best rates and terms. Equipment financing is often easier to qualify for than unsecured loans because the equipment serves as collateral, reducing lender risk.
Required documents typically include: equipment quote/invoice, business tax returns (2-3 years), personal tax returns, bank statements (3-6 months), business financial statements, equipment specifications and photos (for used equipment), franchise agreement, and personal financial statement. Having complete documentation ready speeds up approval significantly.
Yes, new franchisees can often get equipment financing, especially with established franchise brands. Lenders consider the franchise's track record, your business plan, and personal creditworthiness. You may need a larger down payment (15-25%) or personal guarantee. SBA loans are also available for new franchise equipment purchases with favorable terms.
You have several options: refinance the remaining balance into a new loan for upgraded equipment, trade in the current equipment (if it has sufficient value), pay off the remaining balance and start fresh, or negotiate with your lender for early payoff terms. Many lenders offer upgrade programs for technology and vehicles.
Restaurant equipment financing covers kitchen equipment, POS systems, refrigeration, and dining furniture. Terms typically range from 3-7 years with rates from 8-15%. Many lenders specialize in restaurant equipment and understand franchise operations. You can often finance complete kitchen packages for new locations or individual pieces for upgrades.
Yes, commercial vehicle financing is available for delivery trucks, service vans, food trucks, and fleet vehicles. Terms range from 3-7 years with competitive rates for new vehicles. Consider factors like mileage restrictions, maintenance requirements, and resale value. Many franchise-specific lenders understand vehicle needs for different franchise types.
Technology financing covers POS systems, computers, software licenses, digital signage, and security systems. Terms are typically shorter (2-4 years) due to rapid obsolescence. Some software is financed through subscription models rather than traditional loans. Consider lease options for technology that updates frequently.
Specialized equipment often requires industry-specific lenders who understand the equipment's value and use. Medical equipment typically has longer terms (5-10 years) due to high value and long useful life. Fitness equipment may have shorter terms (3-5 years) due to wear and technology changes. Work with lenders experienced in your franchise industry.