How to Finance Hospitality Equipment for Your Cafe or Restaurant

Running a cafe, restaurant, or any food business requires serious equipment investment. Commercial espresso machines, ovens, refrigeration units, dishwashers, and fit-out costs can easily run into the tens of thousands of dollars — before you've served a single customer.

Equipment finance is one of the smartest ways to manage these costs, and it's something I help hospitality clients with regularly.

What Hospitality Equipment Can Be Financed?

Almost everything you need for a commercial kitchen or cafe can be financed, including: commercial espresso machines and grinders, commercial ovens, combi-steamers, and fryers, refrigeration and cool room equipment, dishwashers and glasswashers, coffee equipment, POS systems, fit-out costs (in some cases), and food preparation equipment.

Finance Structures That Work for Hospitality

Equipment Finance Lease

A lease works particularly well for equipment that becomes obsolete or worn quickly. You make regular payments, use the equipment, and have options at the end of the term to upgrade. Lease payments are typically fully tax deductible as a business expense.

Chattel Mortgage

If you want to own the equipment and you're GST-registered, a chattel mortgage lets you claim the GST upfront and deduct interest and depreciation. Works best for higher-value items with a long useful life.

What About New Businesses and Start-Ups?

This is where things get more challenging. Lenders generally prefer to see at least 12 months of trading history. For brand new businesses, options are more limited — but not impossible. Lenders who specialise in start-up finance, or those who will accept personal guarantees or additional security, may be able to help.

I work with a range of lenders across the spectrum, so I can often find a solution even for newer businesses.

Financing a Full Fit-Out vs Individual Items

It's often possible to finance a whole commercial kitchen fit-out as a single facility, rather than financing each piece of equipment separately. This simplifies the paperwork and can sometimes result in better overall terms.

What Do You Need to Apply?

For established businesses: tax returns or BAS statements, business bank statements, ABN and GST registration details, and quotes for the equipment. For new businesses: business plan, personal financial statements, and potentially personal assets as security.

Let's Get Your Kitchen Sorted

If you're setting up or upgrading a cafe or restaurant and need help financing the equipment, I'd love to hear from you. Get in touch and let's work out a structure that fits your business.