Asset Finance for Catering Equipment

A commercial kitchen is a hard place to be an asset. Combi ovens run for hours a day, refrigeration never switches off, and extraction and dishwashers take constant punishment. That heavy use means catering equipment depreciates faster than plant or vehicles, and it is the reason the financing question is usually not just how to spread the cost, but which structure leaves you free to replace kit before it fails.

The mechanic is asset finance secured on the equipment. The lender funds the purchase and your limited company repays over an agreed term, commonly two to five years to match how long the kit realistically earns its keep. Hire purchase makes you the owner at the end and lets you claim Annual Investment Allowance on the full cost in the year of purchase, which suits durable, long-life items like stainless prep benches or a good walk-in cold room. A finance lease keeps title with the lender and you deduct the rentals as an expense, which often fits faster-moving items like combi ovens and refrigeration where you would rather upgrade than be left holding tired kit with little resale value.

Most of what we place is a fit-out rather than a single machine. A restaurant, dark kitchen, cafe, pub, hotel or contract caterer can wrap the whole kitchen, cooking line, cold room, extraction, warewashing and servery, into one facility rather than juggling separate agreements. Branded equipment from names like Rational, Hobart, Williams or Foster holds its value better than bespoke stainless fabrication, and lenders price accordingly.

The honest complication is the sector. Hospitality has a high failure rate, so some funders are cautious on a new restaurant or a young Ltd, and may want a larger deposit or a director guarantee where they would not on a manufacturer. Established operators with filed accounts get keener terms. The equipment is the lender's security, so it can be repossessed if you fall behind on the payments. No broker can promise a rate or an approval before a lender has seen the case. What we do is take your fit-out to the asset funders who actually have appetite for hospitality, and tell you which structure fits before you commit.