If you’re shopping for restaurant equipment and find a great deal on a used piece, you may assume you’ll need to pay cash for it.
Good news: used equipment financing is absolutely an option.
Restaurant operators can finance used commercial kitchen equipment much like they would finance new equipment. Whether you’re replacing an oven that unexpectedly went down, outfitting a new location, or simply trying to make your equipment budget go further, financing used restaurant equipment can help you get what you need without tying up a large amount of cash.
How Does Used Restaurant Equipment Financing Work?
For the operator, financing used restaurant equipment works essentially the same way as financing new equipment.
You find the equipment you want, get a quote or invoice from the equipment dealer, and apply for financing. We review the application and equipment, find the right financing option, and once everything is approved and finalized, the equipment dealer gets paid and you get your equipment.
The biggest consideration with used equipment financing is the equipment itself.
The equipment needs to be in proper working condition and have reasonable useful life remaining. The age and type of equipment can also affect what financing options are available.
In other words, used is perfectly fine. A fryer that has survived three owners, two restaurant concepts, and the better part of a decade? We may need to have a conversation!
The goal is simply to make sure the financing term makes sense in relation to the equipment being financed.
Why Finance Used Restaurant Equipment?
There are plenty of situations where buying used commercial kitchen equipment makes good business sense.
Lower purchase price. Used restaurant equipment can allow you to get what you need for significantly less than buying new.
More equipment within the same budget. Instead of spending your entire equipment budget on one or two new pieces, purchasing used may allow you to address several needs at once.
Access to higher quality equipment. A used piece from a proven commercial brand may be a better investment for your operation than purchasing a lower quality piece simply because it is new.
Faster availability. When a critical piece of restaurant equipment goes down, waiting weeks for a new replacement may not be realistic. Used equipment that is available now can sometimes get your operation back up and running much faster.
Preserving working capital. Pairing a lower used equipment price with financing means you can avoid putting a large amount of cash into equipment all at once.
In foodservice, where cash is needed for payroll, inventory, repairs, marketing, and about 100 other things on any given Tuesday, keeping cash available matters.
Used Restaurant Equipment Isn’t Always the Cheapest Option Long Term
We’re big believers in helping operators make the decision that makes sense for their business, and sometimes that means buying used.
Sometimes, it doesn’t.
A lower purchase price can be attractive, but it’s worth considering the entire cost of owning the equipment.
How old is it? What condition is it in? Is there a warranty? How energy efficient is it? What will maintenance look like? Are replacement parts readily available?
It’s also worth considering what has changed since that piece of equipment was manufactured. Newer restaurant equipment may offer technology that improves speed, consistency, energy efficiency, labor efficiency, or production capacity.
If the used option truly meets your needs, great! There’s no reason to pay more just for the sake of buying new.
But if you’re choosing used only because of the upfront price, it may be worth comparing the new option before making the decision.
When the Cash Budget Says “Used,” Financing May Say “Let’s Do This”
This is where restaurant equipment financing can be especially valuable.
Let’s say you’re comparing a used piece of equipment for $8,000 with a new version for $15,000.
Looking only at the purchase price, the decision may feel obvious.
But what if the new equipment has the latest technology, a manufacturer’s warranty, better efficiency, and features that would genuinely make a difference in your operation?
Instead of asking:
“Can I afford to write a $15,000 check?”
The better question may be:
“Does the monthly payment make sense for my business?”
Suddenly, the equipment you really want, and more importantly, the equipment that may actually be right for your operation, could be within reach.
That doesn’t mean new is always better.
It means your cash on hand doesn’t have to make the equipment decision for you.
Used or New, Start With What Your Restaurant Actually Needs
At FS Foodservice Solutions, we offer financing options for both new and used restaurant equipment.
Our goal isn’t to push you toward the biggest equipment package or the most expensive option. It’s to help you understand your choices so you can make the decision that makes the most sense for your operation.
Sometimes that’s a great piece of used equipment at a great price.
Sometimes it’s investing in new equipment with better technology, greater efficiency, and a warranty behind it.
Either way, financing gives you another option, so you can choose equipment based on what your business actually needs rather than what you’re willing to take out of the bank account today.
Used Equipment Financing FAQs
Can you finance used restaurant equipment?
Yes. Used restaurant equipment can often be financed much like new equipment, provided the equipment meets the requirements of the applicable financing program.
How old can used equipment be and still qualify for financing?
There isn’t one universal age limit. The type of equipment, its condition, remaining useful life, purchase price, and financing term can all factor into the available options.
Does used restaurant equipment need to be in working condition?
Yes. Equipment being financed should be in proper working condition and have reasonable useful life remaining.
Can I finance multiple pieces of used restaurant equipment together?
Often, yes. Multiple pieces of qualifying equipment may be included in the same equipment financing transaction, which can be particularly helpful when outfitting or upgrading several areas of an operation.
Can I finance both new and used equipment in the same project?
A restaurant equipment package doesn’t necessarily have to be entirely new or entirely used.
Should I buy new or used restaurant equipment?
It depends on the equipment and your operation. Used equipment can offer significant upfront savings, while new equipment may provide a warranty, newer technology, greater energy efficiency, and potentially lower maintenance costs.
The best choice isn’t automatically the cheapest piece of equipment. It’s the equipment that provides the right value for your operation. Your equipment dealer is on your side; if you’re unsure of which option to go let them know what you’re considering and what your goals are and let them help guide you!
Looking at used equipment? Send us the quote. We’re happy to take a look and help you explore your financing options.