Restaurant Equipment Financing in Canada: Leasing and Buying Commercial Kitchen Equipment
Restaurant equipment financing lets Canadian restaurants, cafés, bakeries and bars get the ovens, refrigeration and POS systems they need now and pay for them over time. Running a restaurant is a balancing act. You want a range that sears properly, a walk-in that never falters and a POS that doesn’t crash during the Saturday rush. You also have to watch the bank balance.
Reviewed by Matt N., Associate, NewCap Leasing
Whether you’re opening a new spot in Toronto, replacing a failed cooler in Halifax or upgrading a family diner in Calgary, the biggest hurdle is usually the cost of equipment. Do you pay for it outright, or spread the cost and keep cash available for payroll, rent and inventory? This guide covers what you can finance, how leasing compares with buying, and what to prepare before you apply.
How restaurant equipment financing works in Canada
In hospitality, equipment isn’t just a tool. It’s the engine of the business, and when it stops, revenue stops. Because kitchen gear works hard and costs a lot, commercial kitchen equipment financing is standard practice, not a last resort.
Most Canadian operators choose between two paths:
- Equipment leasing: you make fixed monthly payments for a set term. With a lease-to-own agreement, you own the equipment at the end, often for a small buyout.
- Buying with cash or a loan: you own the equipment from day one and carry the full cost, either upfront or through a loan.
With a lease, the equipment itself usually secures the agreement. That is why equipment financing can be easier to arrange than a general bank loan, though approval is never automatic. The equipment, the supplier and your business are all reviewed.
What types of restaurant equipment can you finance?
Most commercial foodservice equipment that has resale value and helps the business earn money can be considered. Here are the categories operators ask about most, and the situations where financing tends to help.
Commercial ovens, ranges and cooking equipment
Cooking equipment is the heart of the line: commercial ranges, convection and combi ovens, griddles, charbroilers, deep fryers, steamers, smokers and induction cooktops. Pizzerias add deck or conveyor pizza ovens. These are expensive, high-use pieces, and a failed fryer or oven can cut menu items on the spot. Commercial oven financing lets you replace or upgrade without emptying the operating account. For a closer look at one category, see our guide to combi oven financing in Canada.
Commercial refrigeration, walk-in coolers and ice machines
When a reach-in or walk-in cooler fails, you have hours, not weeks, to fix it before product is lost. Commercial refrigerator financing can turn an emergency replacement into a planned monthly payment. This category includes reach-in refrigerators and freezers, refrigerated prep tables, walk-in coolers and freezers, blast chillers, bar coolers and commercial ice machines.
Commercial dishwashers and food prep equipment
A high-temperature or chemical commercial dishwasher keeps service moving and helps with health inspections. Prep equipment includes commercial mixers, food processors, slicers, meat grinders, vacuum sealers and blenders. These are often added when menus grow or volume increases, which makes them good candidates for spreading the cost.
Coffee shop, café and bakery equipment financing
A café opening or upgrading may need a commercial espresso machine, grinders, brewers, water filtration and refrigerated display cases, often bought together as one package. Bakeries typically finance deck or convection ovens, spiral and planetary mixers, proofers, sheeters and display cases. Financing the full set at once means you can open, or expand, with the right equipment instead of buying in stages.
Restaurant POS systems, furniture and front-of-house technology
Front-of-house equipment can be financed too: POS terminals and payment hardware, kitchen display systems, dining tables, booths and chairs, and bar equipment. Digital menu boards, displays and sound systems are also common. Our guide to audio visual equipment financing covers screens and sound in more detail.
Food truck and catering equipment
Food trucks and catering companies finance cooking lines, refrigeration, generators, hot-holding equipment, buffet and banquet equipment, and the vehicles or trailers themselves. Mobile kitchens often need the same equipment as a restaurant, built to fit a smaller space.
[Image 2: Barista pulling shots on a commercial espresso machine in a café]
Restaurant equipment financing for a complete kitchen
A new restaurant usually buys an entire kitchen at once: cooking line, hood-side equipment, refrigeration, dishwashing, prep tables, smallwares and front-of-house. Financing the package under one agreement can be simpler than paying several suppliers separately, and it keeps opening cash available for staff, inventory and marketing.
The same applies to a growing restaurant adding a second location. A clear package quote from your supplier, listing each item and its price, makes the application easier to review and helps confirm what can be included.
New and used restaurant equipment financing
New equipment from a dealer is the most straightforward case. Used restaurant equipment financing is also possible, which can stretch a tight opening budget or replace a failed unit quickly. NewCap can consider used equipment bought from dealers, private sellers or auctions, with the seller paid directly.
Used purchases may need extra documentation, such as photos, serial numbers and proof of ownership. Older or very specialized items may not qualify, so check before you commit to a purchase.
Restaurant equipment financing for startups
New restaurants are among the businesses that need equipment financing most, and many lenders are cautious with them. NewCap works with new as well as established businesses, but approval is not guaranteed for any applicant.
If your restaurant is new, a clear supplier quote, a short business plan and information about your experience in the industry can help. If you have operated another restaurant, say so. Your credit history and the transaction details also matter.
Restaurant equipment financing: leasing vs. buying
There is no single right answer. The best choice depends on your cash, how long you’ll keep the equipment and how quickly it becomes outdated.
| Buying (cash or loan) | Leasing | |
|---|---|---|
| Ownership | Immediate | At end of term with lease-to-own |
| Upfront cash | Full price, or a down payment with a loan | Little or none |
| Monthly payment | None if paid cash; varies with a loan | Fixed for the term |
| Repairs and maintenance | Owner’s responsibility | Usually the operator’s; check your agreement |
| Total cost | Usually lower if you keep it long | Usually higher, but cash stays in the business |
| Upgrading | Sell the old unit yourself | Upgrade options at end of term, depending on the agreement |
When buying makes sense
If you’re opening your third location and know exactly what equipment you’ll use for the next decade, buying can make sense. You have the capital, you know the gear, and you want the lowest total cost. Long-life items such as stainless worktables, sinks and hoods often fall into this group.
When leasing makes sense
If you’re a startup or growing quickly, leasing usually protects cash flow better. It lets you change direction if the menu changes and keeps money working in the front of house. Equipment that dates quickly, such as POS hardware and espresso machines, is often a good fit for leasing. Purchased equipment is generally written off over time through capital cost allowance, using the CRA’s classes of depreciable property, while lease payments can be treated differently. Ask your accountant how each option would work for your business.
For a broader comparison, read equipment leasing vs. buying and how equipment leasing actually works.
How to apply for restaurant equipment financing in Canada
- Get a quote. Ask your supplier for a written quote listing each piece of equipment and its price.
- Estimate the payment. Use the lease calculator to see what monthly payments might look like.
- Apply. Complete a one-page application with your business details and the quote.
- Review. Most applications are reviewed within 24 hours. The equipment, the supplier and your business are assessed.
- Sign and get paid out. If approved, you review the terms, sign, and the supplier is paid so your equipment can be delivered.
How NewCap Leasing helps with restaurant equipment financing
NewCap Leasing has more than 14 years of experience and has served more than 2,000 Canadian businesses, including hospitality operators. It finances commercial equipment through its own capabilities and a network of lending partners.
Depending on the application and the equipment, options can include:
- Lease-to-own terms from 24 to 72 months, with most lease-to-own options ending in a $10 buyout.
- 100% financing on approved applications.
- New and used equipment, including private sales and auctions.
- Equipment refinancing to free up equity in equipment you already own.
- Business loans for working capital, for businesses at least six months old.
Terms, eligibility and approval depend on the application, the equipment and the transaction. Not every applicant or item will qualify. See more on our hospitality equipment financing page.
Replacing a cooler, outfitting a café or opening a new kitchen? Apply for equipment financing or talk to a leasing expert about your next purchase.
Frequently asked questions
Can I finance commercial kitchen equipment in Canada?
Yes. Ovens, ranges, refrigeration, dishwashers, prep equipment, POS systems and furniture can all be considered for financing or leasing. Approval depends on the equipment, the supplier and your business.
Can a new restaurant qualify for equipment financing?
New restaurants can apply, and NewCap works with new as well as established businesses. Approval is not guaranteed. A clear quote and information about your experience and plans help.
Can I finance used restaurant equipment?
Yes, used equipment can be considered, including purchases from private sellers and auctions. Expect to provide details such as photos, serial numbers and proof of ownership.
Can I lease a commercial oven or walk-in cooler?
Yes. Commercial ovens, ranges, walk-in coolers, freezers and ice machines are common lease requests. Lease-to-own agreements let you own the equipment at the end of the term.
Can I finance an entire restaurant kitchen or several items at once?
Yes, a complete kitchen or a multi-item package can be submitted together. A supplier quote that lists each item and price makes the review faster.
Can I finance equipment for a coffee shop or bakery?
Yes. Espresso machines, grinders, brewers, bakery ovens, mixers, proofers and display cases are all commonly financed by cafés and bakeries.
What is the difference between equipment leasing and an equipment loan?
With a lease you make fixed payments to use the equipment, and a lease-to-own agreement transfers ownership at the end. With a loan you own the equipment from the start and repay the amount borrowed. Total cost, cash flow and tax treatment differ, so compare both.
What do I need to apply for restaurant equipment financing?
Typically a completed one-page application, a supplier quote or invoice, and basic business details. Additional documents may be requested depending on the business and the amount.
This article is for general information only and is not financial, tax or legal advice. Financing is subject to application review, approval and applicable terms. Consult a qualified adviser about your business’s specific situation.
