What equipment can hospitality businesses finance?
Most tangible, identifiable equipment with a vendor quote can be financed, and installation is often included in the package. For beverage-led businesses that covers the bar itself, the coffee station, entertainment systems and guest-room furnishings. Subscriptions, software licenses and consumables are usually operating costs rather than financed equipment, so budget those separately.
Bars, pubs and taprooms
- Draft towers, glycol power packs, trunk lines and walk-in keg coolers
- Back-bar coolers, ice machines, glass washers and underbar stations
- Commercial TVs, audio zones and video distribution for sports bars
Nightclubs, lounges and entertainment bars
- Sound systems, lighting rigs, LED walls and DJ booth gear
- Security cameras, ID scanners and access control hardware
- Golf simulator bays, arcade cabinets, pool tables and bowling pinsetters
Cafés and coffee shops
- Espresso machines, grinders and water filtration
- Pastry cases, grab-and-go merchandisers and small roasters
Small hotels, inns and event venues
- FF&E such as case goods, soft goods, lighting and room technology
- Room HVAC units, laundry equipment, tents, staging and event lighting
How is equipment financing structured?
The funder pays the vendor, and you make fixed payments over a term that typically tracks how long the equipment will stay useful. Because the gear secures the deal, many owners find the documentation lighter than for a term loan. At the end, you usually own the equipment outright, or with some lease structures you choose to buy, return or upgrade.
Two structures are common:
- Equipment loan or finance agreement: you own the equipment and pay it down over the term.
- Lease: lower payments in some cases, with an end-of-term decision to purchase, return or refresh. Leases can suit gear that ages quickly, like AV systems or point-of-sale hardware.
Match the term to the equipment. Financing a glass washer over a period longer than it will last means you are still paying after it has been replaced.
| Equipment | Typical fit | Watch for |
|---|---|---|
| Draft system and glycol | Equipment financing incl. install | Line length and tap count drive cost |
| Espresso machine and grinders | Equipment financing or lease | Roaster-supplied machines tied to supply contracts |
| Sound, lighting and LED | Equipment financing or lease | Rigging and tuning labor on the quote |
| Hotel FF&E | Equipment financing | Procurement lead times |
| Bar or café remodel work | Term loan | Construction is not equipment |
Can installation and used equipment be included?
Often, yes. Installation, delivery and setup can usually be rolled into the same request when they appear on the vendor or installer quote. Used and refurbished equipment is also financeable with many funders, though terms may be shorter because the remaining useful life is shorter. Ask your vendor for an itemized quote that separates equipment, labor and any warranty.
Installation matters in this industry. A draft system is mostly labor and line runs; a nightclub sound system needs rigging and tuning; a hotel FF&E refresh involves delivery, removal of old furniture and setup. Leaving those costs out of the request often means paying for them from cash you meant to keep.
For deeper walkthroughs, see financing a draft beer system and financing a commercial espresso machine.
When is equipment financing the wrong tool?
Equipment financing is the wrong tool when most of the cost is construction rather than equipment, when the item has little resale or collateral value, or when the purchase is really a subscription. A full bar remodel is mostly framing, plumbing and finishes, which usually fits a term loan. Small one-off purchases may be simpler to pay from cash.
Many projects mix both. A café renovation might finance the espresso machine and pastry case as equipment while a term loan covers the counter rebuild and plumbing. Splitting the request this way often lowers the overall cost and keeps each payment tied to what it bought.
What do funders look at?
Funders look at the equipment quote, your recent bank deposits and your credit, plus how the new payment fits your existing obligations. Requirements vary by product and funder; many look at time in business, monthly revenue and credit. Equipment that clearly supports revenue, such as extra taps or a second espresso machine for a morning line out the door, is easy for a funder to understand.
A short explanation helps: what the equipment replaces or adds, and what changes in the business. For example, a sports bar adding screens and audio zones before football season, or an inn replacing tired room furniture ahead of the summer booking window.
What you’ll typically need
- Itemized vendor or installer quote
- Recent business bank statements
- Owner identification and business details
- Details of any equipment being replaced
Frequently asked questions
Is equipment financing easier to get than an unsecured loan?
It is often more accessible, because the equipment helps secure the deal and gives the funder something of value if payments stop. That does not mean everyone qualifies. Funders still review deposits, credit and existing payments, and requirements vary by product and funder, but many owners find the paperwork lighter than for a term loan.
Can I bundle several pieces of equipment into one request?
Yes, bundling is common and often practical. A bar might combine an ice machine, glass washer and back-bar coolers, or a café might pair an espresso machine with grinders and a pastry case. One request with one payment is simpler to manage, and a larger package can make the paperwork worth doing.
How long are typical equipment financing terms?
Terms typically follow the useful life of the equipment. Durable items like walk-in coolers or case goods can carry longer terms, while fast-aging gear like AV systems or tablets usually carries shorter ones. Many funders offer a range, and the right choice balances a comfortable payment against paying for equipment after it is worn out.
Does equipment financing cover software or subscriptions?
Usually not. Software subscriptions, streaming and sports programming packages, song licensing for karaoke, and ID scanner service plans are ongoing operating costs. Some hardware bundles include a period of software, but most funders finance the physical equipment and installation. Budget recurring subscriptions from operating cash or working capital.
What happens at the end of the term?
With an equipment loan, you typically own the equipment once the final payment is made. With a lease, you usually choose to buy the equipment, return it, or upgrade to newer gear, depending on the agreement. Read the end-of-term terms before signing, since they affect the total cost.
Get the gear, keep the cash
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Updated September 14, 2026 · OpenTab Capital Funding Team