Restaurants
Restaurant Financing
Restaurants finance kitchen equipment, renovations, food trucks and the working capital that covers payroll and food costs through slow seasons. Sagamore is a commercial loan broker matching restaurants, bars, cafés and food trucks with at least a year of operating history in all 50 states with lenders for equipment financing, term loans and lines of credit.
Written by Jordan Levy, Founder & CEO · Last updated
How do restaurants finance kitchen equipment?
- Who it's for
- Restaurants replacing or upgrading ranges, combi ovens, walk-in coolers, hood and fire-suppression systems, dish machines or POS hardware.
- The problem
- A walk-in compressor or a hood system fails without notice, and the replacement can't wait for a good month. Paying cash for it drains the account that covers next week's payroll and food order.
- What fits
- Equipment financing spreads the cost over the equipment's life and uses it as collateral, so approval can move quickly. A term loan covers installation, ductwork and permits that the equipment lender may not count as collateral.
Products that fit
How do restaurants pay for renovations and remodels?
- Who it's for
- Owners refreshing a dining room, reworking a kitchen layout, adding a patio or bar, or bringing a space up to code.
- The problem
- A remodel often means weeks of reduced covers or a full closure while contractors, permits and inspections run their course, so the cost lands when revenue is lowest.
- What fits
- A term loan funds a defined renovation budget with fixed payments. For larger projects, especially in a building you own or are buying, SBA loans and commercial mortgages offer longer terms.
How do you finance a food truck or trailer?
- Who it's for
- Food truck operators with a year of sales adding a second truck, and restaurants adding a truck or trailer for catering and events.
- The problem
- A built-out truck with a commercial kitchen, generator and wrap is a large purchase, and custom builders take a deposit months before delivery.
- What fits
- Equipment financing covers the truck or trailer and its kitchen build, new or used, with the vehicle as collateral. A line of credit handles commissary rent, event fees and food costs through the slower months.
Products that fit
How do restaurants cover slow seasons?
- Who it's for
- Restaurants with seasonal traffic: beach and resort towns, college towns, and anywhere January and February run quiet.
- The problem
- Rent, loan payments and a core staff carry on through the slow months while sales fall well below them, and food and liquor distributors often want payment on delivery or within days.
- What fits
- A line of credit covers the slow months, repays in season and stays open for next year. A term loan fits a one-time need, such as a large liquor buy or a fixed cost the season didn't cover.
Products that fit
Eligibility
What do you need to qualify?
Sagamore is a broker, not a lender. One application is matched with lenders across all 50 states, and every program starts from the same minimums. We work with established businesses only, so startups are not eligible.
- Credit score
- 600+
- Time in business
- 1+ year
- Annual revenue
- $400K+
Frequently Asked Questions
Common questions about restaurant financing
Yes. Many lenders finance used commercial kitchen equipment from dealers and auctions, and some finance private sales. Older or highly specialized equipment can mean a larger down payment.
Through equipment financing, with the truck or trailer and its kitchen build as collateral. Lenders want the builder's or dealer's quote and the business's bank statements. The business needs at least a year of operating history, so a first truck for a new business does not qualify.
Yes. Restaurants with at least a year in business, a 600+ credit score and $400K+ in annual revenue can qualify. Lenders review card processing statements and bank deposits, and look for consistent sales across the year.
Yes. SBA 7(a) loans can cover renovations, equipment and working capital, and SBA 504 loans are built for buying or improving real estate. Both take longer to close than a term loan.
Guides
Which guides cover restaurant financing?
- Restaurant Equipment Financing: Walk-Ins, Ovens, and Kitchen LinesHow restaurant equipment financing works for walk-ins, ovens, and hoods, what lenders want, and when a term loan fits better than an equipment loan.
- Food Truck Financing: How Established Operators Fund a Second TruckFood truck financing for operators with a year of sales: financing the truck and kitchen, covering a builder's deposit, and what lenders check first.
- Restaurant Renovation Loan: Financing a Remodel or a Second LocationHow a restaurant renovation loan works for a remodel or second location: term loans vs. SBA 7(a), budgeting for closed weeks, and what lenders want.
- How Do Seasonal Businesses Cover Cash Flow in the Off-Season?How seasonal businesses fund slow months: sizing the cash gap, choosing between a credit line, 0% cards, and factoring, and when to apply.
- Should You Finance or Lease Business Equipment? Costs, Taxes, and Section 179 in 2026Financing builds ownership; leasing lowers monthly cost. A 5-year cost comparison, how the two lease types differ, and 2026 Section 179 limits.
- SBA 7(a) vs. SBA 504 Loans: Which Fits Your Business?SBA 7(a) vs. 504 in 2026: down payments, rates, fees, and uses compared, with a worked $2 million building example showing the monthly difference.
- Business Line of Credit vs. Term Loan: Which Should You Get?A line of credit fits recurring or uncertain cash needs. A term loan fits one known expense. How each works, what each costs, and how to choose.
By state
Which state guides cover restaurant financing?
Each state guide covers its disclosure law, SBA offices and state loan programs. All state guides
Related Funding Options
Which funding options fit restaurants?
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