This is an illustrative example of how this type of financing is commonly structured. It does not describe a specific client, and actual terms depend on the lender's review of your business.
The Situation
A fast-casual restaurant group with three profitable locations signs leases for two more. Each new kitchen needs hoods, ranges, refrigeration, dish machines and point-of-sale systems, about $500,000 in total.
Sales dip every winter, so the owners want to keep cash on hand for opening payroll and a slow first season.
One way to structure $500K of restaurant equipment
Why This Structure Fits
- The equipment secures the loan, so the group keeps its cash for build-out overruns and opening payroll.
- Fixed monthly payments make it easy to budget each new location.
- Some lenders offer seasonal or step payment structures for businesses with predictable slow months.
How It Would Work
- 1
Collect quotes
Get itemized vendor quotes for each location.
- 2
Application
Provide tax returns, year-to-date financials, POS sales reports and the new leases.
- 3
Approval
Equipment lenders often decide within days, because the equipment secures the loan.
- 4
Funding
The lender pays the vendors directly as equipment is delivered and installed.
Things to Know
- Compare the total cost of financing, not just the payment, and ask about end-of-term options on any lease.
- If the build-out also needs financing, an SBA 7(a) loan can cover construction, equipment and working capital together.
- Lenders will check that cash flow from existing locations covers the new payments.