Restaurant Equipment Loans in Canada: 6 Places to Go In 2026

Opening a restaurant — or expanding the one you have — is equal parts excitement and sticker shock. Somewhere between choosing a menu and hiring staff comes the least glamorous but most unavoidable decision: how to pay for the kitchen. Ranges, walk-in coolers, dishwashers, prep tables, POS systems — a full commercial build-out runs into six figures fast, and paying cash for all of it upfront can drain the working capital you need to actually open the doors.

That’s where financing earns its keep. Spreading equipment costs over several years preserves cash for payroll, inventory, and the slow first months every operator knows are coming. This guide walks through seven solid places to finance restaurant equipment in Canada in 2026 — from the cheapest bank money to the fastest alternative lenders — plus the one government-backed program built for exactly this purchase that most owners have never heard of.

Quick Comparison

Why Finance Restaurant Equipment At All?

The case for financing is a cash-flow case. Buying a $120,000 kitchen outright means $120,000 that isn’t covering rent, staff, or the inevitable gap before a new restaurant turns profitable. Financing spreads that cost across the equipment’s useful life, keeps your reserves intact, and lets you buy current-generation equipment instead of settling for whatever the budget allows on day one. For a sector where thin margins and seasonal swings are the norm, protecting working capital isn’t conservative — it’s survival. (If you’re financing a brand-new venture rather than an expansion, my roundup of startup business loans in Canada covers the broader picture.)

The Challenge for Bad or No-Credit Borrowers

Banks apply stringent credit requirements, and a new restaurant with no operating history or an owner with a bruised credit file will struggle to clear that bar. That’s why the alternative lenders below exist — but their speed and flexibility come at the price of higher rates and shorter terms. If your credit is the obstacle, the smartest first move is often to fix it before borrowing: a few months of on-time payments and a clean-up of your file can move you into a cheaper tier. My guide to improving your Canadian credit score lays out the fastest levers, and it’s worth understanding how ratings like an R2 on your credit report shape what lenders see.

The 7 Best Places to Finance Restaurant Equipment

1. The Big 5 Banks and Credit Unions

Canada’s major banks — BMO, RBC, TD, Scotiabank, and CIBC — along with local credit unions are the natural starting point for anyone with solid credit. They offer the lowest interest rates and the longest repayment terms, which for a large equipment package translates into meaningfully smaller monthly payments than any alternative lender can match.

Credit unions deserve a specific mention for new operators. Their community-driven, relationship-based approach often means more personalized underwriting and a willingness to look past a thin file in a way the big banks won’t. The trade-off across both is speed and stringency: predictable, cheap terms, but a slower process and a higher bar to clear.

2. CSBFP — The Government-Backed Option Most Owners Miss

Here’s the one I’d make sure is on every restaurateur’s list, because surveys suggest only about 16% of Canadian small businesses even know it exists. The Canada Small Business Financing Program (CSBFP) is a federal loan-loss-sharing program: your bank or credit union makes the loan, and Innovation, Science and Economic Development Canada guarantees up to 85% of the lender’s losses if you default. That guarantee is what gets a “maybe” turned into a “yes” for newer restaurants.

The numbers fit restaurant equipment almost perfectly. A borrower can access up to $1.15 million total — up to $1 million in term loans (of which up to $500,000 can go toward equipment and leasehold improvements, exactly the commercial-kitchen-and-build-out combination) plus a $150,000 line of credit for working capital. Rates are capped at your lender’s prime rate plus up to 3%, with a one-time 2% registration fee and a 1.25% annual administration fee. Your business needs gross annual revenue of $10 million or less, and — one catch worth noting — farming operations aren’t eligible. You apply through a participating lender, not the government directly; as CIBC’s own CSBFP page shows, the big banks all run it. Ask your account manager by name, because plenty of loan officers won’t raise it unprompted.

3. Swoop Funding

Swoop isn’t a lender — it’s a marketplace that matches you against multiple lenders (banks and alternative financiers) from a single application, which makes it a fast way to see what you actually qualify for without shopping each lender one by one. Startup-scale amounts run from around $500 to $25,000, but Swoop can arrange far larger facilities for established businesses, with rates starting near 6% for the strongest profiles. It’s the efficient first stop when you want to benchmark offers; just remember the headline rate is the best case, not the quote everyone gets.

4. Merchant Growth

A Vancouver-based alternative lender operating since 2009, Merchant Growth has funded more than $150 million to over 1,700 Canadian businesses and is a member of the Canadian Lenders Association. Term financing runs $5,000 to $800,000, with funding in as little as 6 to 24 hours and repayment over roughly 6 to 24 months. You’ll need about six months in operation and $10,000 in monthly revenue to qualify. Rates range from 12.99% to 39.99%, and repayments are daily or weekly — fast and flexible, but a structure that can squeeze a slow month, so match it honestly to your cash flow. I go deeper in my Merchant Growth review.

5. Driven

Driven — the rebranded Thinking Capital, and one of Canada’s larger non-bank small-business lenders — specializes in fast, simple approvals for small businesses. Borrow $10,000 to $500,000 with terms typically running 3 to 18 months, backed by six months of bank statements and a business in good standing. A soft credit check protects your score at the application stage. Driven is a CLA member, and its streamlined process suits owners who need funding quickly. My full take is in the Driven review.

6. SharpShooter Funding

SharpShooter Funding focuses on small and medium-sized businesses, with a concise application, fast approvals, and funding amounts up to roughly $300,000 over terms of 6 to 60 months. Qualifying can require as little as 100 days in operation, which makes it one of the more accessible options for a young restaurant. Worth knowing: much of SharpShooter’s funding is structured as merchant cash advances, where “rates” are quoted as factor rates rather than APRs — always convert to a true annualized cost before signing, because the two can look very different.

7. Journey Capital

Journey Capital rounds out the list as an option for restaurants with bad or non-existent credit, emphasizing customizable terms built around your business rather than a rigid credit cutoff. It’s a CLA member and a reasonable fit when the bank has said no and you need an adaptable structure. See my Journey Capital review for the details.

Banks vs. Alternative Lenders: The Real Trade-Off

The decision usually comes down to cost versus speed. Banks, credit unions, and the CSBFP deliver the lowest rates and longest terms — the cheapest money available — but demand strong credit and patience. Alternative lenders like Swoop, Merchant Growth, Driven, SharpShooter, and Journey Capital approve fast and flex on credit, but you pay for it in higher rates, shorter terms, and often daily or weekly repayments.

One clarification worth making, because the industry blurs it: being a member of the Canadian Lenders Association is exactly that — membership in an industry body — not a government certification or a seal of creditworthiness. It’s a reasonable signal that a lender has agreed to the association’s standards, but it doesn’t replace reading the actual terms. Whatever the label, the only number that matters is the total cost over the full term. If you have equipment or receivables to pledge, an asset-based loan can sometimes beat both routes on rate.

Deal With Existing Debt First

If your restaurant is already carrying debt it’s struggling to service, adding an equipment loan on top can deepen the hole rather than dig you out. Before taking on new liabilities, it’s worth addressing what’s there. Debt consolidation can combine multiple balances into one payment, and for heavier strain, a consumer proposal lets you negotiate partial repayment to creditors. A non-profit credit counselling agency can walk you through the options for free before you commit to anything.

Final Thoughts

Financing a restaurant kitchen is one of those decisions where the cheapest option and the fastest option are rarely the same, and the right answer depends entirely on your credit, your timeline, and your tolerance for daily repayments. If your credit is strong, start with a bank, a credit union, or — my genuinely underused pick — the CSBFP, whose $500,000 equipment sub-cap was practically designed for a commercial build-out. If you need money this week and can’t clear a bank’s bar, the alternative lenders will get it done, provided you’ve done the arithmetic on total cost first. Whatever you choose, add up every payment over the full term, compare it against at least one other quote, and make sure the equipment is earning more than the financing costs. Do that, and you’ve made a business decision instead of a desperate one.

FAQ

Can I finance used restaurant equipment?

Yes. Most alternative lenders and the CSBFP allow financing of new or used equipment — the CSBFP explicitly covers “purchasing or improving new or used equipment.” Used gear can stretch a tight budget, but confirm the lender’s rules before you buy.

What credit score do I need?

For a bank or the CSBFP, stronger is better, though the CSBFP publishes no fixed minimum — lenders still assess your file. Alternative lenders like Journey Capital and SharpShooter work with weak or thin credit, trading a lower bar for higher cost.

Is leasing better than a loan for restaurant equipment?

It depends. Leasing can mean lower upfront cost and easier upgrades; a loan builds ownership. For pure equipment with a strong resale life, a lease is sometimes faster and cheaper — run both totals before deciding.

How fast can I get funded?

Alternative lenders can fund in as little as 6 to 24 hours (Merchant Growth) or 1 to 2 days (Driven). Banks and the CSBFP typically take a few weeks.

What’s the cheapest way to finance a kitchen?

Generally a bank, credit union, or CSBFP loan if your credit qualifies. The CSBFP’s prime-plus-up-to-3% cap is hard for alternative lenders to beat, even after its 2% registration and 1.25% annual fees.