Term length follows useful life
Lenders match the term to how long the asset lasts, which is why a walk-in and a POS terminal do not finance the same way.
- /Hoods, ventilation, and walk-in boxes: 60 to 84 months, the longest terms in the kitchen
- /Ranges, fryers, ovens, and dish machines: 48 to 72 months
- /Reach-in refrigeration and prep tables: 36 to 60 months
- /POS hardware and kitchen display systems: 24 to 36 months, and often better leased than financed
Installed equipment underwrites differently
A hood and its makeup air are partly construction. They are permanently affixed, they require permits, and recovering them from a closed restaurant is impractical.
Because of that, hood and ventilation work is often better placed on a buildout facility than on an equipment agreement, especially in a bare shell. A walk-in box, by contrast, is modular and recoverable, so it finances cleanly as equipment.
Package the request, do not split it
One vendor quote covering the full kitchen underwrites faster and prices better than 4 separate small tickets. Each separate request re-runs credit and re-opens the file.
If equipment comes from several vendors, a single dealer can often consolidate the quote, which keeps the transaction as one funding event.
What a package actually costs
A modest independent kitchen package runs 60,000 to 120,000. A full service kitchen with a hood, a walk-in, a line, and refrigeration commonly lands between 150,000 and 300,000.
Financed across 60 to 84 months, that becomes a fixed monthly line item rather than a cash event that empties the opening account. Use the payment calculator on this page against your real quote.
New versus used, by asset
Used is a real option on refrigeration, prep tables, ranges, and smallwares, and it finances through dealers with a documented condition report.
Buy the hood, the fire suppression, and the dish machine new. Those are the three that fail inspection and the three that shut a kitchen down when they fail in service.
Calculator
Equipment payment and total cost
Enter the quote, the rate you were offered, and the term. The payment is the standard amortizing payment, and the total cost is what leaves the business above the amount financed.
Programs commonly cover 80 to 100 percent. Leave at 0 if none is required.
Use the rate on the written offer, not an estimate.
Your numbers are ready
Tell us about the operation and the results open up.
The math above runs on your inputs. Send the request and the figures unlock on this page, a specialist reviews what you entered, and you get written options to compare. No credit application, no hard pull.
We email you a copy of these figures. They are estimates for planning, not an offer, a quote, or a preapproval of any kind.
The arithmetic
payment = P x i / (1 - (1 + i)^-n), where P is the amount financed, i is the annual rate divided by 12, and n is the number of monthly payments. Total cost = (payment x n) - P.
Sources
- 1Amortizing payment formula: P x i / (1 - (1 + i)^-n)Standard time value of money identity. The same closed form used by the PMT function, with i as the monthly rate and n as the number of monthly payments.
- 2Bank prime loan rate, the base most business term financing is priced againstFederal Reserve, H.15 Selected Interest Rates. Published daily by the Federal Reserve. Enter the current prime rate when pricing a variable rate offer.
- 3Annual percentage rate definition, 12 CFR 1026.22Consumer Financial Protection Bureau, Regulation Z. APR is the nominal annual rate that discounts a payment stream back to the amount advanced. We solve it numerically from the payment schedule and multiply the periodic rate by the number of periods per year.
Estimates, not offers: Amounts, terms, and funding times are estimates based on programs commonly available in food service. Actual terms vary by program, lender underwriting, time in business, revenue, and credit profile. Nothing here is an offer of credit or a guarantee of approval.