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Catering Equipment Finance

Finance that keeps your kitchen working
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Catering equipment finance provides tailored financial solutions to support businesses in the catering industry, enabling them to acquire the tools needed for efficient and reliable operations. By assessing their specific requirements—such as operational demands, business growth projections, and equipment longevity—catering businesses can select a financing option that aligns with their goals and ensures long-term sustainability.

Key Types of Catering Equipment Finance

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.

Benefits of Catering Equipment Finance

  • Cash Flow Management: Financing allows businesses to acquire necessary equipment without large upfront costs, preserving cash flow for other operational needs.
  • Tax Efficiency: Certain financing options, such as leasing, can offer tax benefits. Payments may be deductible as business expenses.
  • Flexibility: Options like leasing allow businesses to upgrade equipment as needed, ensuring they always have the latest technology.
  • Ownership Options: Businesses can eventually own the equipment, providing long-term value.

Considerations

  • Payments and Fees: It’s important to compare payments and understand all associated fees.
  • Loan Terms: Ensure the repayment schedule aligns with your business’s cash flow.
  • Residual Value: In leasing agreements, be aware of the equipment’s residual value at the end of the term if ownership is an option.

Catering businesses should assess their specific needs, including the lifespan of the equipment and the expected growth of the business, to choose the most suitable financing option.

Common Financing Options for Catering Equipment

Equipment Leasing

Rental / Operational Lease
The business rents the equipment for a specified period with the option of taking ownership at the end of term. This option is the most flexible and often recommended in the catering industry.
Finance Lease
The business leases the equipment over a longer term, with the possibility of ownership at the end. Payments are made in installments, and the equipment appears as an asset on the balance sheet.

Chattel Mortgage

The business pays fixed monthly payments. Ownership transfers to the business once all payments are completed.

Business Loans

A lump sum loan is provided to purchase the equipment outright. The loan is repaid over time with interest. This option allows the business to own the equipment immediately.

Types of equipment

  • Combi Ovens
  • Griddles & Flat Tops
  • Soup Kettles
  • Bain-Maries
  • Hot Boxes / Holding Cabinets
  • Heat Lamps & Strip Warmers
  • Undercounter Fridges & Freezers
  • Blast Chillers
  • Ice Machines
  • Blenders & Food Processors
  • Vacuum Sealers
  • Beverage Dispensers
  • Display Fridges & Heated Display Cases
  • Mobile Serving Carts & Trolleys
  • Servery Counters
  • Pot & Pan Washers
  • Grease Traps & Filters