Catering equipment finance a working kitchen without the upfront bill

What is catering equipment finance?

Catering equipment finance lets you install commercial ovens, ranges, extraction, refrigeration, dishwashers and coffee machines now and pay for them monthly over an agreed term. It is usually set up as a lease or hire purchase, and the equipment itself normally acts as the security.

Kitchens are expensive to equip and the kit works hard. Catering equipment finance matches the cost to the covers, coffees or loaves the equipment helps you sell, rather than taking a large lump out of working capital that you may need for stock, staff and quiet weeks. It also helps when something fails mid-service and needs replacing quickly.

Leasing is popular for kit that wears out or that you expect to upgrade, such as bean-to-cup coffee machines, glasswashers and dishwashers. Hire purchase suits equipment you plan to keep for many years, such as a heavy-duty range, deck oven or walk-in cold room. We are a broker, not a lender, so we can compare both routes across our panel and explain the trade-offs.

If you are opening a new site or doing a full refit, the kitchen is often one part of a wider project. Our fit-out finance page covers the building works and front of house, and our hospitality finance page looks at funding across restaurants, pubs, cafés and hotels.

Key features

What caterers fund with it

• Combi ovens, ranges, fryers and chargrills
• Extraction canopies, ventilation and gas interlocks
• Fridges, freezers, blast chillers and cold rooms
• Espresso and bean-to-cup coffee machines
• Deck ovens, mixers and proofers for bakeries
• Dishwashers, glasswashers and ice machines

Leasing vs hire purchase for catering equipment

Extraction and gas safety: plan it into the budget

Extraction is often the most underestimated part of a kitchen project. HSE guidance explains that commercial kitchens normally need mechanical extraction through a canopy over the cooking appliances, with enough make-up air for gas appliances, and that new ventilation systems should be interlocked with the gas supply so gas cannot be turned on unless the extraction is running. Work on gas appliances in restaurants and other workplaces must be carried out by a Gas Safe registered engineer qualified for that work, and HSE suggests annual inspection as a reasonable minimum.

From a finance point of view, it helps to get the canopy, ductwork, interlock and installation itemised on the supplier's quote. Lenders can then see exactly what they are funding, and you avoid finding a gap in the budget late in the project.

Tax: kitchen fittings and equipment

GOV.UK lists kitchen fittings in non-residential property among the fixtures that may qualify for full expensing, and most freestanding catering equipment counts as plant and machinery for capital allowances. If you buy on hire purchase, GOV.UK explains you can claim the Annual Investment Allowance on the payments once you start using the item, though not the interest; on a lease, you don't own the kit, so you generally can't claim allowances. Some building-related items are treated differently, so please speak to your accountant.

What lenders typically look at

• Supplier quote listing equipment, installation and any extraction or gas work
• Business bank statements, typically the last three to six months
• Latest accounts or tax returns, or projections if you are opening a first site
• Details of your premises and lease length
• Card-takings or EPOS reports can help show trading if accounts are out of date
• Owner or director details for identity and credit checks