Bakery equipment financing spreads the cost of ovens, mixers, proofers, sheeters, refrigeration and display cases over monthly payments, with the equipment as collateral. You can get it from equipment lenders, through equipment dealers that partner with finance companies, or with an SBA loan, and the right choice depends on how much you are buying, whether it is new or used, and how steady your sales are through the year.
For the wider picture, including working capital and startup funding, see our bakery loans hub. This page focuses on equipment: what it costs to finance as lenders publish it, what they look for, and how to avoid overpaying.
What bakeries finance
- Ovens: deck, convection, rack and conveyor ovens.
- Mixers: planetary and spiral mixers.
- Dough equipment: dividers, rounders, sheeters and moulders.
- Proofers and retarders for controlled fermentation.
- Refrigeration: walk-in coolers and freezers, reach-ins and blast chillers.
- Front of house: refrigerated display cases, POS systems and coffee equipment.
- Packaging and wholesale: slicers, baggers and scales if you sell to grocers or cafes.
- Used equipment: a common way to save on ovens and mixers; lenders may shorten the term or ask for an inspection. See used equipment financing.
Bakery equipment financing options compared
Figures checked on September 21, 2026, as each lender or program publishes them. Where a rate is shown, the lender quotes it as a rate without saying whether it is an APR (annual percentage rate, the yearly cost including fees). Most of the programs below do not list rates, so ask every lender for the rate, all fees and the total of payments in writing before you compare.
| Option | Amounts | Term | Pricing as published | Requirements published | Other terms |
|---|---|---|---|---|---|
| Kapitus equipment financing | From $20,000; “No Maximum” | Up to 72 months | Interest rates “Starting at 7.5%” | FICO 660; 2 years in business | Up to 100% of equipment cost; application-only up to $500,000 |
| Dealer financing (The Restaurant Warehouse, via QuickSpark) | Not published | 12 to 60 months | Not published | Not published | “100% financing available on most equipment”; seasonal payment schedules and $99-a-month starter programs |
| Dealer financing (ProBAKE, via Direct Capital) | Not published | Not published | Not published | Not published | Says it can have buyers “approved within 24 hours” |
| SBA 7(a) | Up to $5 million | Generally up to 10 years | Negotiable, subject to SBA maximums | SBA eligibility plus lender standards | Can combine equipment with working capital or a buildout |
| SBA 504 | Up to $5.5 million | 10, 20 or 25 years | Pegged to 10-year Treasury rates | SBA eligibility plus lender standards | Equipment must have at least 10 years of useful life remaining; no working capital |
Sources: Kapitus, The Restaurant Warehouse, ProBAKE, SBA 7(a), SBA 504.
Equipment lenders
Independent lenders are often the quickest route for a single oven or mixer. Kapitus publishes a 660 FICO minimum, two years in business and terms up to 72 months, and it says it can finance up to 100% of the cost. Kapitus also cites approval “in as little as 24 hours.” Fast approvals are convenient, but compare the total cost against at least one other offer.
Dealer and manufacturer financing
Many equipment dealers offer financing at checkout through a finance partner. The Restaurant Warehouse, which sells planetary and spiral mixers and proofers, links to QuickSpark for financing and advertises terms of “12 to 60 months” and “credit decisions often within 24 hours.” ProBAKE, a bakery equipment supplier, links to Direct Capital. Dealer financing is convenient, but the finance partner sets the rate, so treat it like any other quote. Many of the same programs cover general kitchen equipment; see restaurant equipment financing.
SBA loans
A 7(a) loan suits a bigger project, such as equipment plus a buildout and working capital for a new location. The 504 program finances “long-term machinery and equipment with a useful remaining life of a minimum of 10 years” but cannot be used for “working capital or inventory.” SBA loans usually take longer to close, so they fit planned projects better than an oven that failed last week. See SBA 7(a) vs. 504 vs. microloans.
Seasonal payments
If your sales rise and fall with holidays and events, some lenders will match payments to that pattern. The Restaurant Warehouse, for example, describes “payment schedules designed to match seasonal cash flow patterns, with lower payments in slow months and higher payments during peak revenue periods.” If your sales swing a lot, ask each lender whether it offers a seasonal or skip-payment schedule. For other ways to cover slow months, see how business lines of credit work for seasonal cash flow gaps.
Loan or lease?
With an equipment loan or a lease with a nominal buyout, you own the equipment at the end. That usually makes sense for ovens and mixers that last many years. A fair market value lease can suit equipment you expect to replace sooner, such as POS systems or display cases, but you may pay more over time or end with nothing to show for it. We compare the two in equipment financing vs. leasing.
Tax treatment
The IRS says the Section 179 expensing limit for tax years beginning in 2026 is $2.56 million, with the deduction reduced dollar for dollar once equipment placed in service in the year exceeds $4.09 million (IRS). The IRS also says the 2025 tax law provides “a permanent 100‑percent additional first year depreciation deduction for qualified property acquired” after January 19, 2025 (IRS). Financed equipment can qualify, but how depends on the deal structure and your situation, so talk to your CPA before you sign.
What lenders look for
- Time in business and sales. Established bakeries with steady deposits get the widest choice. Kapitus, for example, asks for two years in business. Startups have fewer options; see equipment financing for startups.
- Personal credit. Kapitus publishes a 660 FICO minimum. Other lenders set their own thresholds, and some lean more on the equipment’s value.
- Bank statements. Several months of statements show your sales pattern, including seasonal swings.
- An equipment quote. Make, model, new or used, price, and delivery and installation costs. Lenders finance standard, resellable equipment most easily.
- Your lease. If the equipment is installed in a leased space, lenders may ask about the lease term.
Pitfalls to avoid
- Financing installation separately. Ovens often need venting, gas lines or electrical work. Ask whether soft costs can be included so you are not paying for them out of cash flow.
- Paying for the equipment after it is gone. Keep the term within the equipment’s working life, especially for used equipment.
- Comparing monthly payments only. A longer term lowers the payment but raises the total cost. Ask for the total of payments.
- Promotional payments that step up. A low starter payment, such as $99 a month for six months, means higher payments later. Budget for the full payment.
- Blanket liens and personal guarantees. Check whether the lender files a lien on all business assets and what you are guaranteeing personally. See what a UCC filing is.
FAQ
Can a new bakery get equipment financing?
Yes, but options are narrower. Some lenders ask for two years in business, as Kapitus does. Startups may need stronger personal credit, a down payment or an SBA loan. Our guide to equipment financing for startups covers the choices.
Can I finance used bakery equipment?
Yes, many equipment lenders finance used equipment. Expect lenders to look at the age and condition of used equipment, and possibly to shorten the term.
Can I finance equipment with no money down?
Some lenders finance the full cost. Kapitus says it can finance up to 100% of the equipment cost, and The Restaurant Warehouse advertises “100% financing available on most equipment.” See equipment financing with no money down.
How fast can I get funded?
It depends on the lender and the deal size. Kapitus cites approval “in as little as 24 hours,” and The Restaurant Warehouse says credit decisions come “often within 24 hours.” SBA loans take longer.
Next step
Get a written quote for the equipment, including delivery and installation, and pull your last few months of bank statements. Our bakery loans page explains how we help bakeries compare equipment loans, leases and SBA options from the lending partners we work with. To estimate payments first, try the equipment loan calculator.
Sources
- Kapitus: Equipment financing
- The Restaurant Warehouse: Restaurant equipment financing
- ProBAKE: Financing and leasing
- SBA: 7(a) loans
- SBA: 504 loans
- IRS: Business tax provisions (video script)
- IRS: Guidance on additional first-year depreciation
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against the primary sources listed above on September 21, 2026; lenders change their terms, so confirm current terms before you apply, and let us know if you spot a figure that has changed. SMB Compass is a business financing broker: we don’t lend our own money, and we are paid by the lenders we place loans with. This page is general information, not financial, legal or tax advice.