Details About Restaurant Equipment Loans
Having the right restaurant equipment is important for any restaurant to run efficiently. There comes a time when you will need to upgrade, replace, or add new equipment to your restaurant, and we have plenty of lending options for you. It is important to know the lifespan of the equipment you plan to purchase beforehand. Generally, the term of the loan should be the same as the expected lifespan of the new equipment. Banks are the best option for financing because they usually offer the most favorable interest rates, however, they have strict credit requirements.
What do lenders look for?
Although the restaurant equipment may be used as collateral for the loan, lenders will still require a good credit rating. In fact, some may require an excellent credit rating which is usually a score between 750 – 850. Additionally, they will want to see proof of profitability for 2 out of the last 3 years in business.
Best practice tips:
- Be sure to have proof of profitability for at least 2 years
- A good credit score is very important, learn how to improve your credit score today
- Finance the restaurant equipment for the same length of time as the equipment lifespan