Finance Assets arranges commercial refrigeration finance for UK limited companies, funding catering fridges and freezers, display chillers, cold rooms, blast chillers and cellar cooling for restaurants, pubs, shops and food producers.
Commercial refrigeration finance spreads the cost of new equipment over 2 to 5 years, so a business can open a new site, refit a kitchen or replace failing units without a large one-off bill. We arrange commercial fridge finance on hire purchase and leasing, including installation, and compare lenders that understand hospitality and food retail.
Written by Marcus Wright, founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed September 2026.
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The short version
- Commercial refrigeration finance lets a business spread the cost of fridges, freezers, chillers and cold rooms over 2 to 5 years.
- Branded plug-in units are the easiest to fund, while built-in cold rooms are funded mainly on the strength of the business.
- Installation and commissioning can usually be included alongside the equipment.
- A finance lease spreads the VAT across the rentals, which helps a new site keep cash for opening costs.
- Finance Assets arranges refrigeration finance for UK limited companies and LLPs, not for household appliances.
| Item | Detail |
|---|---|
| Equipment covered | Catering fridges and freezers, display chillers, cold rooms, blast chillers, bar and cellar cooling, ice machines |
| Deal sizes | From a single display chiller to a full refrigeration refit across several sites |
| Terms | Usually 2 to 5 years, matched to the working life of the equipment |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Mainly new from recognised suppliers. Used plug-in units from dealers in some cases |
| Who we help | UK limited companies and LLPs in hospitality, food retail and food production |
Commercial refrigeration equipment we finance
Lenders will fund most commercial refrigeration used to store, prepare or sell chilled and frozen food and drink, provided it comes from a recognised supplier.
| Equipment group | Examples |
|---|---|
| Catering fridges and freezers | Upright and undercounter cabinets, counter fridges, prep stations and gastronorm units from makers such as Foster, Williams and Gram |
| Display refrigeration | Multideck chillers, serve-over counters, glass-door merchandisers, patisserie cabinets and grab-and-go units |
| Cold rooms and walk-ins | Walk-in chillers and freezers, including panels, doors, condensing units and shelving |
| Blast chillers and freezers | Reach-in and roll-in blast chillers used to cool cooked food quickly and safely |
| Bar and cellar cooling | Bottle coolers, back-bar fridges, glass chillers, beer line cooling and cellar cooling systems |
| Ice and process cooling | Ice machines, and process chillers used on food and drink production lines |
| Refrigerated transport | Fridge vans and refrigerated trailers. See our HGV and artic trailer finance guide |
Businesses that use commercial refrigeration finance
Any business that stores or sells chilled and frozen food or drink can finance its refrigeration, as long as it trades as a limited company or LLP.
- Restaurants, cafés and takeaways. Kitchen fridges, freezers and blast chillers, often funded as part of an opening or a kitchen refit.
- Pubs, bars and hotels. Bottle coolers, cellar cooling and cold rooms, sometimes alongside a wider refurbishment.
- Convenience stores, butchers and delis. Multidecks, serve-over counters and cold rooms, where old units can use far more electricity than new ones.
- Food manufacturers and wholesalers. Cold stores, blast freezers and process chillers linked to production. Our manufacturing equipment finance guides cover the wider production line.
- Contract caterers and care home operators. Kitchen refrigeration replaced on a planned cycle across several sites.
New, used and built-in refrigeration
New equipment from a recognised supplier is the easiest to fund. Plug-in units such as upright fridges and display chillers can be unplugged and resold, so lenders are comfortable with them. Built-in systems such as cold rooms and remote condensing units are fixed to the building and cost money to remove, so lenders fund them mainly on the strength of the business, and usually over shorter terms.
- Installation. Pipework, electrical work and commissioning can usually be included, as long as the equipment makes up most of the cost.
- Used equipment. Used plug-in units from dealers can sometimes be funded. Used cold rooms moved from another site rarely can.
- Refrigerant rules. F-gas rules are phasing down high-impact refrigerants such as R404A, which makes some older systems harder and more expensive to service. It is a common reason businesses replace refrigeration early.
- Running costs. Newer units with better insulation and controls usually use less electricity, which may offset part of the monthly payment.
Finance options for commercial refrigeration
Most businesses buy long-life refrigeration on hire purchase and use a finance lease to keep upfront costs down on a new site. 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 | Fridges, freezers and cold rooms you will run until they wear out |
| Finance lease | Rentals with VAT added to each one. The lender owns the equipment | New sites and refits where cash is needed for opening costs |
| Operating lease | Lower rentals set around the expected resale value, sometimes with servicing included. You hand the equipment back at the end | Branded display chillers and bottle coolers you plan to replace on a cycle |
Hire purchase for commercial fridges and freezers
Hire purchase for commercial fridges and freezers suits equipment you plan to keep for its whole working life, which for a well-maintained catering cabinet can be many years. You pay a deposit, often around 10% plus the VAT, then fixed monthly payments, and the equipment is yours after the final payment and a small option fee. A VAT-registered company usually gets the VAT back on its next return.
Finance lease for commercial fridges and freezers
A finance lease for commercial fridges and freezers keeps the upfront cost low, which matters when a new restaurant or shop is also paying for fit-out, stock and staff before it opens. You pay a few rentals in advance, VAT is added to each rental, and the lender owns the equipment. At the end you can usually keep it on a small secondary rental.
Operating lease for commercial refrigeration
An operating lease for commercial refrigeration is mostly used for branded display chillers and bottle coolers, where there is a clear resale market. The rentals are set around what the equipment should be worth at the end, and some schemes include servicing and breakdown cover. You hand the equipment back when the term ends and can replace it with newer, more efficient units.
VAT and tax on commercial refrigeration finance
Hire purchase means paying the VAT upfront and may bring capital allowances, while leases add VAT to each rental and make the rentals the expense.
| Type | VAT | Tax treatment |
|---|---|---|
| Hire purchase | VAT on the full price is paid at the start, and a VAT-registered company usually reclaims it on its next return | Treated as the owner, the company may be able to claim capital allowances, such as the annual investment allowance |
| Finance lease | VAT is added to each rental and reclaimed as you go | Rentals are usually deductible as a business expense |
| Operating lease | VAT is added to each rental | Rentals are usually deductible, and the lender claims the allowances |
Your accountant can confirm how each option treats VAT and tax for your company before you choose.
Commercial refrigeration finance costs: a worked example
A £40,000 refrigeration package for a new restaurant, covering a walk-in cold room, a blast chiller, a display chiller and two upright cabinets, costs about £1,145 a month on a 3-year hire purchase, or about £747 a month over 5 years.
| Item | 3 years | 5 years |
|---|---|---|
| Package price (excl. VAT) | £40,000 | £40,000 |
| Deposit (10%) | £4,000 | £4,000 |
| VAT paid upfront | £8,000 | £8,000 |
| Monthly payment | £1,144.79 for 36 months | £747.30 for 60 months |
| Total interest | £5,212 | £8,838 |
The longer term lowers the monthly payment by about £397 but adds around £3,626 of interest. Because the cold room is built in, some lenders will cap the term at 3 or 4 years for that part of the package.
Illustration calculated in September 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 refrigeration finance applications
Lenders look at the usual financial documents, plus a clear supplier quote and evidence the business can carry the payments.
- Accounts and bank statements. The last two years of filed accounts, recent management accounts and three to six months of business bank statements.
- Supplier quote. An itemised quote from a recognised supplier, showing the equipment, installation and any maintenance separately.
- Trading history. How long the company and its directors have run food or hospitality businesses.
- Premises. The length of your lease, especially for built-in equipment such as cold rooms. Lenders prefer a lease that runs at least as long as the finance agreement.
- Site standards. Some hospitality lenders also look at the site’s food hygiene rating as a sign of a well-run business.
- Director history. Lenders check the directors’ credit records and may ask for personal guarantees from newer companies.
Related guides
- Types of asset finance
- HGV and artic trailer finance, including refrigerated trailers
- Manufacturing equipment finance
- All sectors we finance
Who we can help
We arrange commercial refrigeration finance for UK limited companies and LLPs. We do not arrange finance for household fridges and freezers. We are not authorised by the FCA, so we cannot arrange agreements of £25,000 or less for sole traders or small partnerships, or finance for personal use.
Commercial refrigeration finance FAQs
Can I finance a cold room or walk-in freezer?
Yes. Cold rooms and walk-in freezers are funded regularly, including the panels, doors, refrigeration plant and installation. Because a built-in cold room is hard for a lender to remove and resell, it is usually funded on the strength of the business rather than the equipment, often over 3 to 5 years.
Can installation costs be included in the finance?
Usually, yes. Most lenders will include installation, pipework, electrical work and commissioning alongside the equipment, as long as the equipment makes up most of the total. Ask your supplier for a quote that shows the equipment and installation separately, because lenders will want to see it.
Can I get finance on used commercial fridges?
Sometimes. Used plug-in units from known brands bought through a dealer can be funded, usually over a shorter term. Used built-in systems and cold rooms moved from another site are harder, and many lenders will not take them on. New equipment from a recognised supplier is by far the easiest to fund.
Is it better to buy or lease commercial refrigeration?
It depends on how long you will keep the equipment and how you want to handle the VAT. Hire purchase suits equipment you will run until it wears out, and you own it at the end. A finance lease keeps the upfront cost lower because the VAT is spread across the rentals. Your accountant can say which fits your tax position.
Can a new restaurant or café company get refrigeration finance?
Yes, although lenders look harder at companies with less than two years of accounts. They may ask for a larger deposit, personal guarantees from the directors, a business plan or evidence of experience in hospitality. Directors with a clean credit history and a background in the trade make an application much easier.
Can I finance a whole kitchen or shop refit in one agreement?
Often, yes. Many lenders will put refrigeration, cooking equipment, extraction and shop fittings on one agreement, as long as the supplier invoices it together. A refit that is mostly building work rather than equipment is harder to fund this way, and a business loan may fit better.
Get a commercial refrigeration finance quote
Tell us about the equipment
Send us the supplier quote and a few details about your business. 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.