Bakery Equipment Finance

The ingredients for your success

Financing bakery equipment involves securing funding to acquire or lease the essential tools required to operate a bakery smoothly. It’s a practical way for businesses to access the equipment they need without large upfront costs, helping preserve cash flow and support day-to-day operations. Financing bakery equipment is also a strategic move that can greatly enhance your bakery’s efficiency and output. By exploring the available financing options and assessing your unique operational and financial needs, you can select a solution that aligns with your business goals and supports long-term success

Key Types of Bakery Equipment Financing

Rental / Operating Lease

Ideal for cleaning equipment that may need frequent upgrades due to wear and tear or technological advancements. The lessor retains ownership, and the lessee pays a rental fee. This is the most flexible finance facility and at the end of the lease term, the business can purchase the equipment, return the equipment, renew the lease, or upgrade to newer models.

Finance Lease

The lessee makes regular instalments with a residual value based on ATO guidelines due as the final payment. The lessee has the option to purchase the equipment at the end of the lease term by paying the residual value.

Chattel Mortgage

In a Chattel Mortgage agreement, the business pays off the equipment in instalments. There is an option to take a balloon at the end of term which will help lower the regular monthly payments. Ownership transfers to the business after the final payment.

Vendor Financing

Some manufacturers or distributors of cleaning equipment offer financing options directly or through partnerships with FInance@work. These programs often feature competitive rates and terms tailored to the specific equipment being purchased.

Managed Services

Instead of purchasing, businesses can opt for a subscription-based model where they pay a recurring fee for access to cleaning machines, software, and support services. This model helps avoid large upfront costs and ensures access to the latest cleaning technology.

Considerations for Bakery Equipment Finance

Cost of Equipment: Understand the total cost, including installation and maintenance.
Equipment Lifespan: Match the financing term with the expected useful life of the equipment.
Cash Flow Management: Evaluate how the financing terms will impact your business cash flow.
Tax Implications: Consider potential tax deductions on interest payments or lease expenses.
Maintenance and Upgrades: Plan for the possibility of maintenance and upgrading equipment as technology evolves.

Benefits of Financing Bakery Equipment

Cash Flow Management: It helps businesses spread out the cost of expensive equipment, preserving working capital for other needs.
Tax Benefits: Payments made under certain types of finance agreements can be tax-deductible.
Flexible Options: Businesses can choose from various finance options tailored to their specific needs and financial situation.
Up-to-Date Equipment: Leasing options often allow businesses to upgrade equipment regularly, ensuring they have access to the latest and most productive technology.

Financing Options

Rental and Operating Leases

An option that works well for all types of equipment, these facilities allow you to acquire the equipment when it’s needed to keep up with growing demand and to improve productivity. Rental and operating leases are generally more flexible in approvals, management of the

Finance Lease

Finance Lease give you a low fixed monthly Instalment over a fixed period with a residual value at the end of term. When choosing a residual value, it must adhere to ATO guidelines, the higher the value of

Chattel Mortgage / Equipment Loan

A Chattel Mortgage or an Equipment Loan works much in the same way a commercial loan does – you pay back the loan in instalments on a monthly basis.

Types of Bakery Equipment

Ovens: Convection ovens, deck ovens, rotary ovens, and proofing ovens.
Mixers: Planetary mixers, spiral mixers, dough sheeters, and dough dividers.
Refrigeration: Walk-in coolers, freezers, display refrigerators, and blast chillers.
Baking Tools: Rolling pins, baking trays, molds, and pastry cutters.
Display Cases: Refrigerated and non-refrigerated display cases for showcasing baked goods.
Packaging Equipment: Bagging machines, sealing machines, and labeling equipment.
Point of Sale (POS) Systems: Cash registers, scales, and barcode scanners.
And more