Finance Assets arranges asset finance for restaurants and cafes, helping UK restaurants, cafes, coffee shops and takeaways fund kitchens, extraction, coffee machines, refrigeration, EPOS and fit-outs.
Asset finance for restaurants and cafes spreads the cost of that equipment over 2 to 5 years, so covers and takings pay for the kit as it earns. It suits restaurants refitting a kitchen, cafes upgrading coffee and display equipment, and operators opening a new site or a delivery kitchen.
Written by Marcus Wright, founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed October 2026.
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The short version
- Asset finance lets restaurants and cafes spread the cost of equipment over 2 to 5 years.
- Cooking equipment, extraction, refrigeration, coffee machines and EPOS from different suppliers can go on one agreement.
- Coffee machines supplied with a bean contract often belong to the roaster, so check before including them.
- Lenders look closely at trading history and the premises lease, as restaurants are seen as a higher-risk sector.
- Finance Assets arranges asset finance for restaurants and cafes trading as limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Ranges, combi ovens, pizza ovens, extraction, dishwashers, refrigeration, coffee machines, display counters, EPOS and fit-out |
| Terms | Usually 2 to 5 years, matched to how long the equipment stays in use |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both, including reconditioned catering equipment from established dealers |
| Extras | Installation, gas and electrical connection, and some furniture and fit-out can often be included |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Equipment we finance for restaurants and cafes
Lenders will fund most of the equipment a restaurant or cafe owns. Each group links to our detailed guide where we have one.
| Equipment group | Examples |
|---|---|
| Cooking | Ranges, combi ovens, pizza ovens, grills, fryers, induction hobs and charcoal ovens. See catering equipment finance |
| Extraction and ventilation | Canopies, ductwork, fans, filtration and odour control |
| Warewashing | Pass-through and undercounter dishwashers, glasswashers and water softeners |
| Refrigeration | Walk-in cold rooms, blast chillers, prep fridges and display chillers. See commercial refrigeration finance |
| Coffee and drinks | Espresso machines, grinders, bean-to-cup machines and water filtration. See vending and coffee machine finance |
| Display and bakery | Patisserie counters, heated displays, proving cabinets and bake-off ovens |
| Tills and ordering | EPOS, self-order kiosks, kitchen screens and card machines. See point of sale finance |
| Furniture and fit-out | Seating, counters, lighting and outdoor dining equipment, usually alongside harder equipment |
| Delivery | Delivery vans and electric bikes |
Finance for kitchen refits and extraction
The kitchen is usually the biggest equipment cost in a restaurant, and it is the part lenders are most comfortable funding.
- Full refits. Cooking equipment, extraction, refrigeration and warewashing can go on one agreement with installation.
- Extraction. Upgrading canopies, fans and odour control is often needed to meet landlord, insurer or planning requirements, and can be funded with the rest of the kitchen.
- Switching to electric. Moving from gas to induction and electric ovens can cut energy use and make the kitchen cooler. Compare the payment with the saving.
- Reconditioned equipment. Good used catering equipment from established dealers can be funded, usually on slightly shorter terms.
Finance for cafes and coffee shops
Cafes and coffee shops rely on fewer, harder-working pieces of equipment.
- Coffee machines. Many roasters supply an espresso machine with a bean contract, and the machine stays theirs. If you buy your own, it can be funded, and you are free to choose your coffee.
- Display counters. Refrigerated and heated displays sell more food per customer. They are easy to fund alongside the coffee equipment.
- Small totals. A cafe fit-out may come to less than £25,000. We can help cafes trading as limited companies at that size, subject to each lender’s minimum, but not sole traders.
New sites, franchises and delivery kitchens
Opening a new site is when most operators need finance, and lenders treat each situation a little differently.
- Second and further sites. Operators with a profitable existing site find approval much easier. Lenders look at the group’s trading as a whole.
- Franchises. Franchisees can fund the kit specified by the franchisor. Lenders look at the franchise agreement and how long it runs.
- Delivery-only kitchens. Kitchens serving through delivery apps can be funded. Lenders will want to see order volumes and the platform fees taken.
- Start-ups. First-time owners with trade experience and a clear plan stand a better chance. A larger deposit or a director’s guarantee may be needed.
For pubs serving food, see our page on asset finance for pubs and bars.
Finance options for restaurants and cafes
Restaurants usually buy kitchen equipment on hire purchase and lease technology they will upgrade. Our types of asset finance guide covers each option in more depth.
| Type | How it works | Suits |
|---|---|---|
| Hire purchase | A deposit, then fixed monthly payments. You own the equipment after the last one | Kitchens, extraction and refrigeration you will keep |
| Finance lease | Rentals with VAT added to each one. The lender owns the equipment | Spreading the VAT on a full fit-out |
| Operating lease | Lower rentals priced around the expected resale value. You hand it back at the end | EPOS, kiosks and coffee machines you will upgrade |
| Contract hire | A fixed rental for an agreed term and mileage, often with maintenance included | Delivery vans |
Hire purchase for restaurants and cafes
Hire purchase for restaurants and cafes is the usual way to buy kitchen equipment, extraction and refrigeration. You pay a deposit, often around 10% plus the VAT, then fixed monthly payments, and the equipment is yours after the last one. You are treated as the owner for tax from the start, so you may be able to claim capital allowances.
Finance lease for restaurants and cafes
A finance lease for restaurants and cafes suits a full fit-out, because VAT is added to each rental instead of being paid upfront. The lender keeps ownership. At the end you can usually keep using the equipment for a small secondary rental, or sell it and receive most of the proceeds.
Operating lease for restaurants and cafes
An operating lease for restaurants and cafes works for EPOS, ordering kiosks and coffee machines that you expect to upgrade. Rentals are set around what the equipment should be worth at the end, and you hand it back or upgrade when the term finishes.
Contract hire for restaurants and cafes
Contract hire for restaurants and cafes is used mainly for delivery vans. You pay a fixed monthly rental for an agreed term and mileage, with servicing often included, and the vehicle goes back at the end.
VAT and tax for restaurants and cafes
Most restaurants and cafes are VAT registered and can reclaim VAT on equipment. On hire purchase, VAT on the full price is usually paid at the start and reclaimed on the next return. On a lease, VAT is added to each rental. With hire purchase you may be able to claim capital allowances, and lease rentals are usually an allowable business expense. Check the tax treatment with your accountant.
Restaurant kitchen finance costs: a worked example
A £55,000 restaurant kitchen refit, with a combi oven, range, extraction canopy, prep fridges and a pass-through dishwasher, costs about £1,232 a month on a 4-year hire purchase, or about £1,028 a month over 5 years.
| Item | 4 years | 5 years |
|---|---|---|
| Equipment price (excl. VAT) | £55,000 | £55,000 |
| Deposit (10%) | £5,500 | £5,500 |
| VAT paid upfront | £11,000 | £11,000 |
| Monthly payment | £1,231.81 | £1,027.54 |
| Total interest | £9,627 | £12,152 |
The longer term lowers the monthly payment by about £204 but adds around £2,525 of interest. Your premises lease will usually need to run beyond the end of the term you choose.
Illustration calculated in October 2026, assuming an interest rate of 9% a year. It is not a quote. Your rate depends on your trading history, credit profile and the equipment.
What lenders look for in restaurants and cafes
Lenders look at the usual financial documents, plus how well established the business is.
- Your last 2 years of filed accounts, or management accounts and a forecast for newer businesses
- Your last 3 to 6 months of business bank statements
- Weekly takings, covers and the split between eat-in, takeaway and delivery
- Your premises lease and how long it has left, or the franchise agreement for franchisees
- Supplier quotes, plus photo ID and address history for each director, member or partner
Related guides
Who we can help
We arrange asset finance for restaurants and cafes that trade as UK limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000 that are for business purposes. We are not authorised by the FCA, so we cannot arrange agreements of £25,000 or less for sole traders or partnerships of two or three partners, or finance for personal use.
Asset finance for restaurants and cafes FAQs
Can a new restaurant get equipment finance?
Sometimes. Lenders look closely at new restaurants, so trade experience, a clear business plan and a signed lease all help. A larger deposit or a director’s guarantee may be needed. Operators opening a further site find it much easier.
Can I finance an espresso machine?
Yes, if you are buying it. Machines supplied by a roaster with a bean contract usually stay the roaster’s, so they cannot be financed by you.
Can kitchen extraction be financed?
Yes. Canopies, ductwork, fans and odour control can be funded with installation, usually on the same agreement as the cooking equipment.
How much does restaurant equipment finance cost?
It depends on the equipment, the term and your business. As an illustration, a £55,000 kitchen refit costs about £1,232 a month over 4 years on hire purchase at 9%, after a 10% deposit and the VAT paid upfront, or about £1,028 a month over 5 years.
Can a franchisee finance their equipment?
Yes. The equipment specified by the franchisor can be funded. Lenders will look at the franchise agreement and how long it has left to run.
Can used catering equipment be financed?
Yes, from established dealers. Reconditioned equipment usually goes on slightly shorter terms than new.
Get an asset finance quote for your restaurant or cafe
Tell us what you want to finance
Send us the equipment, the prices and a few details about your restaurant or cafe. We will come back with the options that are realistic and what they are likely to cost.
About the author
Marcus Wright is the owner and founder of Bolton Business Finance Ltd, which trades as Finance Assets. He has worked in financial services since 2008, beginning his career at Santander, and has been a commercial finance broker since March 2019.
He founded Bolton Business Finance in 2020 to give businesses access to the whole lending market rather than one bank’s own product range. The firm is a member of the National Association of Commercial Finance Brokers and works with a panel of 135+ lenders. Call 0161 546 9128.
Finance Assets is a trading name of Bolton Business Finance Ltd, an independent commercial finance brokerage, not a lender. We are not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. All lending is for business purposes only. Registered address: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Company number 12495909.