hospitality · Equipment & asset finance
Commercial kitchen finance
A kitchen is bought as a package from several suppliers. We fund it as one facility so you open with cash still in the bank.
What is commercial kitchen finance?
Commercial kitchen finance is funding for cooking, refrigeration, preparation and dishwashing equipment in a hospitality kitchen, secured against the equipment. Australian restaurants and cafes commonly finance an entire kitchen package on one facility, including installation, exhaust and gas fitting.
A commercial kitchen is a system, not a shopping list. The equipment has to match the menu, the service style and the space, and the utilities have to support it. Combi ovens have replaced a lot of traditional cooking lines in Australian kitchens because they do more in less space with less labour, but they need the right power supply and ventilation to work.
Financing an entire kitchen at once has a practical advantage beyond cash flow: everything is on one term at one rate, and it can settle as each supplier delivers. Free-standing equipment is straightforward security. Canopies, benches, coolroom construction and gas works usually fall under fit-out finance. Your broker will read the quotes and split the funding so nothing falls between two lenders.
Commercial kitchen finance at a glance
| Typical price range | $25,000 – $400,000 |
|---|---|
| Finance term | Up to 72 months |
| Useful life | About 12 years |
| New or used | New equipment carries warranty and compliance certification; used equipment from closed venues is cheap and readily available but harder to finance on its own. |
| Indicative rates (Fit-out finance) | 9.5% – 22% p.a. · rate history |
| Finance structures | Fit-out finance (recommended), Chattel mortgage, Equipment loan, Finance lease |
How lenders assess commercial kitchen finance
Kitchen equipment is funded readily for established venues, and a full package from multiple suppliers can settle under one facility. Lenders distinguish between free-standing equipment such as combi ovens, fryers, fridges and dishwashers, which is good security, and fixed works such as exhaust canopies, benches and gas fitting, which are usually funded under fit-out finance instead. Start-up venues are assessed on the operator’s hospitality experience, the lease and the fit-out budget, and often need a deposit or additional security.
Before you buy
- Design the kitchen around the menu before you buy equipment; a combi oven suits a very different service style to a chargrill and fryer line.
- Get exhaust canopy, gas fitting and electrical works quoted separately, as they are financed differently to free-standing equipment.
- Check that used equipment still meets current gas and electrical compliance requirements before you commit.
Commonly financed
Rational iCombi Pro combi oven · Waldorf cooking suites · Hobart and Washtech dishwashers · Skope and Williams refrigeration · Robot Coupe food processors
Estimate commercial kitchen repayments
- Number of repayments
- 60
- Balloon at end of term
- $42,600
- Total interest (est.)
- $101,038
- Total repaid (est.)
- $314,038
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is commercial kitchen finance?
Commercial kitchen finance is a loan or lease used to buy cooking, refrigeration and dishwashing equipment for a hospitality venue, with the equipment as security. Terms usually run 36 to 72 months and multiple suppliers can settle under one facility.
What is the difference between kitchen equipment and fit-out?
Free-standing equipment such as ovens, fryers, fridges and dishwashers can be repossessed and resold, so lenders treat it as equipment security. Fixed works such as canopies, benches, plumbing and gas fitting cannot, so they are usually funded through fit-out finance instead.