Larkpine Lending Group, an Iowa City, IA small-business funding service, lists commercial kitchen equipment restaurants may finance, grouped as cooking, ventilation, refrigeration, prep, warewashing and front of house, with notes on new versus used equipment, where to buy it and how to finance restaurant equipment.
Commercial kitchen equipment, defined
Equipment built for continuous use and for health-code cleaning: heavier, larger and certified for food service. It is also financeable as equipment, because each piece has a serial number, a resale value and a seller's quote.
The list, by job
| Job | Equipment | Financing notes |
|---|---|---|
| Cooking | Ranges, ovens, fryers, griddles, charbroilers | Core items; can be financed as a package |
| Ventilation and fire safety | Hoods, make-up air, fire suppression | Installed systems; quotes should include installation |
| Refrigeration | Walk-in cooler and freezer, reach-ins, prep tables | Large single items; used units need condition reports |
| Prep | Mixers, slicers, food processors, work tables | Smaller items; can be bundled |
| Warewashing | Dish machine, three-compartment sink | Dish machines can be leased |
| Front of house | Point-of-sale system, espresso machine, ice machine | Ice machines and POS can be leased |
The restaurant funding page explains how equipment fits alongside renovations and payroll.
What to finance first
Start with the items that would cost the most if they failed: refrigeration and the hood system. A walk-in cooler failure loses stock; a hood problem can stop cooking. Next come the core cooking line and the dish machine. Smallwares, such as pans, utensils and storage containers, are usually paid from cash because they have little resale value.
Buying commercial kitchen equipment: dealers, reps and auctions
Restaurant equipment dealers, manufacturers' representatives, used-equipment dealers and auctions all sell to restaurants. Partners prefer dealer quotes with model and serial numbers; auction purchases are harder to finance because there is no quote before the sale.
We do not recommend specific dealers.
Financing the restaurant equipment package
Get quotes that include delivery and installation. Decide which items to buy and which to lease. Then send the package as one request; partners see the whole kitchen, not a list of separate items. The equipment financing page explains loans, leases and used equipment.
Illustration (not an offer)
A new kitchen's quote totals $118,000: hood and suppression $32,000, walk-in $21,000, cooking line $38,000, dish machine $9,000, prep and refrigeration $18,000. The owner leases the dish machine, finances the rest as one equipment package and pays smallwares from opening cash.
Sales tax on equipment purchases
Equipment purchases may carry sales tax, and how that applies is a question for your accountant. For collected tax on sales, see the Johnson County sales tax checklist.
Kitchens in Johnson County, IA
Johnson County, IA had 161 full-service and 120 limited-service restaurants in 2023 (County Business Patterns 2023). County data is on the Iowa City, IA page; more articles are on the blog.
Questions to ask a dealer before you buy
- Is installation included in the quote, and by whom?
- What warranty comes with new and with reconditioned units?
- Does the equipment fit the hood and utility capacity of the space?
- How long is delivery, and does that match the opening date?
- Who services the equipment after installation?
By Larkpine Lending Group · Updated