Finance Assets arranges food, drink and catering finance for UK businesses buying commercial kitchen equipment, refrigeration, brewery and distillery equipment, food production lines and vending machines.
Food, drink and catering finance spreads the cost of the equipment a hospitality business or food and drink producer runs on, so capital stays free for stock, staff and new sites. This page sets out what we fund across the sector, how hire purchase and leasing compare, and links to our detailed equipment guides.
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.
On this page
The short version
- Food, drink and catering finance covers kitchens, refrigeration, brewing and distilling, food production and vending.
- Hire purchase leads to ownership, while leases spread the VAT and can be handed back at the end.
- Installation, extraction, gas and power work can usually go on the same agreement as the equipment.
- Lenders look at how you trade, from restaurants and cafés to retail contracts and wholesale.
- Finance Assets arranges food, drink and catering finance for limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Catering equipment, commercial refrigeration, brewery and distillery equipment, food production lines and vending machines |
| Terms | Usually 2 to 5 years, and up to 7 years on new production lines and stainless steel tanks |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both, from UK and overseas makers, dealers, auctions and other operators |
| Extras | Installation, extraction, gas and power upgrades and commissioning can often be included |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Food, drink and catering finance guides
Each guide covers one type of equipment in detail, including the finance options that suit it and a worked example of the monthly cost.
- Brewery and Drinks Equipment FinanceBrewery and drinks equipment finance for brewhouses, fermenters, bright tanks, stills, cider presses and soft drinks production, new or used, on hire purchase or leasing.
- Catering Equipment FinanceCatering equipment finance for commercial cooking equipment, display and serving counters, coffee machines, dishwashers and extraction, on hire purchase or leasing.
- Commercial Refrigeration FinanceCommercial refrigeration finance for fridges, freezers, display chillers and cold rooms. Hire purchase and leasing for UK businesses. Get a quote.
- Food Manufacturing Equipment FinanceFood manufacturing equipment finance for industrial ovens, mixers, processing and forming machines, spiral freezers and complete lines, new or used, on hire purchase or leasing.
- Vending Machine FinanceVending machine finance for operators and businesses: snack, drinks, combination, bean-to-cup coffee and smart fridges, new or refurbished. Hire purchase and leasing.
Hospitality sector guides
Equipment we finance
Lenders will fund almost any equipment a food, drink or hospitality business uses, provided it comes from an identifiable maker or dealer on a clear quote.
| Equipment group | Examples |
|---|---|
| Commercial kitchens | Catering equipment, including combination ovens, ranges, fryers, display counters, coffee machines and dishwashers |
| Refrigeration | Commercial refrigeration, including cold rooms, blast chillers, display chillers and cellar cooling |
| Brewing and distilling | Brewery and drinks equipment, including brewhouses, fermenters, bright tanks, stills and cider presses |
| Food production | Food manufacturing equipment, including industrial ovens, mixers, forming machines and spiral freezers |
| Packing and bottling | Packaging machinery, including filling, canning, labelling, wrapping and end-of-line equipment |
| Vending and self-service | Vending machines, including snack and drinks machines, bean-to-cup coffee machines, smart fridges and micro markets |
Hire purchase and leasing for food and drink equipment
Most businesses choose between owning equipment through hire purchase or renting it through a lease. The right choice depends on how long you keep the equipment and how much cash you want to tie up at the start.
| Type | How it works | Suits |
|---|---|---|
| Hire purchase | A deposit, then fixed monthly payments. You own the equipment after the last one | Ovens, tanks and production lines you will run for many years |
| Finance lease | Rentals with VAT added to each one. The lender owns the equipment | A new site or full fit-out, where VAT on everything at once would strain cash flow |
| Operating lease | Lower rentals set around the equipment’s expected resale value. Hand back at the end | Coffee machines, vending and equipment you replace every few years |
Hire purchase for food and drink equipment
Hire purchase for food and drink equipment is the most common route for producers and established restaurants. You pay a deposit, often around 10% plus the VAT, then fixed monthly payments, and the equipment is yours outright at the end. You are treated as the owner for tax from day one.
Finance lease for catering and hospitality equipment
A finance lease keeps cash in the business, because VAT is added to each rental instead of being paid upfront. It suits a restaurant, café or pub opening a new site, where kitchen, refrigeration and bar equipment all arrive together. At the end you can usually carry on at a small secondary rental.
Operating lease for food and drink equipment
An operating lease sets the rentals around what the equipment should be worth when it comes back, so the lender takes the resale risk. It suits equipment that dates quickly or that you plan to upgrade, such as coffee machines, display equipment and vending machines.
VAT and tax on food, drink and catering finance
On hire purchase, VAT on the full price is usually paid at the start and a VAT-registered business reclaims it on its next return. On a lease, VAT is added to each rental. With hire purchase you may be able to claim capital allowances, such as the annual investment allowance, or full expensing for companies buying new equipment. Lease rentals are usually an allowable business expense. Check the tax treatment with your accountant.
Vending machine finance
Vending machine finance spreads the cost of snack, drinks and coffee vending machines over 2 to 5 years, for vending operators building a fleet and for businesses installing machines on their own premises. Machines from established makers, with cashless payment and telemetry fitted, are the easiest to fund.
- Hire purchase for vending machines. A deposit and fixed payments, with the machines yours at the end. Suits operators who keep machines on sites for many years.
- Finance lease for vending machines. VAT spread across the rentals, which helps when placing a batch of machines across several new sites.
- Operating lease for vending machines. Lower rentals and the option to hand back or upgrade, which suits machines tied to a fixed-length site contract.
- What lenders look at. For operators, the spread of sites, the length of placement agreements and how much income comes from any one client. A fleet can often be added to under one facility.
Used equipment and refinancing
Used equipment is widely funded across the sector, and equipment you already own can raise cash.
- Used stainless steel equipment, including tanks, ovens and processing machines, which holds its value well.
- Equipment from closing sites, such as restaurants, breweries and food factories, usually with an inspection or photos.
- Refinance through a sale and hire purchase back on equipment you own outright, to fund a new site or working capital.
How food, drink and catering finance works
Deals follow the same five steps, whether you are buying one coffee machine or a complete production line.
- Tell us about the equipment: what it is, its price and supplier, and whether it is new or used
- We match the lenders on our panel that fund that type of equipment and business
- We come back with the options that are realistic and what they are likely to cost
- The lender reviews your accounts and bank statements and makes a credit decision
- You sign the agreement, the lender pays the supplier and the equipment is installed
What lenders ask for
Lenders ask for the usual financial documents, plus details of the equipment and how you trade.
- 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
- An itemised supplier quote, showing equipment, installation and commissioning separately
- Details of your premises lease for restaurants, cafés and pubs, or key customer contracts for producers
- Photo ID and address history for each director, partner or owner
Related guides
- Manufacturing equipment finance
- Office furniture and fit-out finance, including shopfits
- Point of sale and payment machine finance, for EPOS and card terminals
- Asset finance for dairy farms
- Types of asset finance
- All sectors we finance
Who we can help
We arrange food, drink and catering finance for 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.
Food, drink and catering finance FAQs
What equipment can food, drink and catering finance cover?
It can cover commercial kitchen equipment, refrigeration and cold rooms, brewery and distillery equipment, food production lines, bottling and packing machinery, and vending and coffee machines. The equipment must be used in the business. Installation, extraction and commissioning can usually be included in the same agreement.
Can I finance vending machines?
Yes. Snack, drinks and coffee vending machines can be funded on hire purchase, finance lease or operating lease, for operators and for businesses placing machines on their own premises. Lenders favour machines from established makers with cashless payment, and for operators they look at the spread of sites and placement agreements.
Can a new restaurant or café get equipment finance?
Yes, although lenders look more closely at businesses with less than two years of trading. Owners with hospitality experience, a signed premises lease and a realistic forecast all help. A larger deposit or a personal guarantee may be needed, and some lenders cap the amount for start-ups.
Can I finance used catering or production equipment?
Yes. Used equipment from dealers, auctions and closing sites is widely funded, especially stainless steel tanks, ovens and processing machines that hold their value. Lenders look at the age, condition and maker, and may ask for photos or an inspection.
Can I fit out a whole new site on one agreement?
Often, yes. Kitchen, refrigeration, bar and front-of-house equipment from several suppliers can usually go on one agreement, with each item listed on the schedule. A finance lease spreads the VAT, which helps when everything arrives at once.
Can I release cash from equipment I already own?
Yes. Through a sale and hire purchase back, a lender buys equipment you own outright and sells it back to you over a fixed term, so you keep using it. The amount depends on its current value and age. Businesses use it to fund a new site, more capacity or working capital.
Get a food, drink and catering 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.