Financing bakery equipment involves securing funds to purchase or lease the specialised tools and machinery needed to operate a bakery. This can include ovens, mixers, display cases, and more. Here’s a comprehensive guide to understanding and obtaining bakery equipment finance.
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
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.
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 bakery equipment is a strategic decision that can significantly impact your bakery’s efficiency and product quality. By understanding the various options and carefully evaluating your needs and financial situation, you can choose the best financing strategy to support your business goals.