Quick answer
Hospitality equipment finance is a loan or lease for commercial kitchen, bar and dining-room equipment such as ovens, cool rooms, dishwashers, coffee machines and furniture. The equipment is usually the security. Ownright Custom Finance arranges hospitality equipment finance Australia-wide, including for new venues, used gear and tighter credit files.
Key points
- Ovens, fryers, cool rooms, dishwashers, coffee machines and furniture can be funded
- New and used equipment are both possible, from dealers or private sellers
- Repayments can often be set to the pace of your trade
- New venues and operators with imperfect credit can still be looked at
- Suits
- Cafes, restaurants, bars, pubs, caterers and food trucks
- Security
- The equipment being financed
- Structures
- Chattel mortgage, hire purchase, rental or lease
- Australia-wide
- Yes
What is hospitality equipment finance?
Hospitality equipment finance spreads the cost of the gear that keeps a venue running. A lender pays the supplier, you repay over time, and the equipment secures the debt. The point is simple: a combi oven or a new cool room starts earning the day it arrives, while the payments are spread across the months it keeps earning.
Commercial equipment is expensive, and hospitality margins can be thin. Tying up cash in a dishwasher or a coffee machine can leave a venue short on stock, wages and rent. Finance keeps that cash available.
What equipment do hospitality businesses finance?
- Cooking: combi ovens, ranges, grills, fryers, pizza ovens, rotisseries
- Refrigeration: cool rooms, freezers, display fridges, ice machines
- Beverage: espresso machines, grinders, keg systems, glass washers
- Cleaning: commercial dishwashers, extraction and exhaust systems
- Front of house: tables, chairs, bar fitting, POS terminals, outdoor furniture
- Mobile: food trucks, trailers and catering vehicles (see truck finance for the vehicle side)
For the build itself, such as walls, plumbing and joinery, see business fitout finance.
Who suits this type of finance?
Café owners opening a second site, a new restaurateur outfitting a kitchen from scratch, a pub replacing a worn-out cool room, a caterer buying a van and cooking line, a food-truck operator upgrading, or a bar owner adding a keg system. Venues of all sizes use it, and it is just as relevant to a regional bakery as to a city restaurant.
What do lenders look at?
The equipment. New or used, brand, age, serial numbers and the quote. Lenders like items they can identify and resell.
The venue. Trading history, lease length, location and the owner’s experience. A venue with a long lease and solid trading is easier to place than a brand-new operation.
The finances. Tax returns, BAS, bank statements and existing debts. Hospitality income can be lumpy, so lenders pay attention to the pattern, not just the totals.
The structure. Deposit, term and whether a balloon or residual is involved.
Chattel mortgage, lease or rental: which fits hospitality?
| Structure | Ownership | Often suits |
|---|---|---|
| Chattel mortgage | You own the gear from day one | Long-life items like ovens and cool rooms |
| Hire purchase | Lender owns until the last payment | Buyers who want a clear route to ownership |
| Finance lease | Lender owns | Regular upgrading and manageable commitment |
| Rental | Lender or supplier owns | Short-term or high-tech items |
Each has different tax and balance sheet effects, so your accountant should weigh in. The finance lease page and chattel mortgage page go deeper, and the guide to chattel mortgages is a useful starting point. From 1 July 2026 the ATO’s instant asset write-off applies to eligible assets costing less than $20,000 for small businesses with turnover under $10 million, which can be relevant to individual pieces of kit.
How Ownright arranges hospitality equipment finance
Trevor Scott and the team begin with the calendar. A cafe that peaks over summer needs a different repayment pattern to a ski-town restaurant or a pub with a Friday night crowd. We ask when the money comes in, then look at lenders who can shape repayments around it.
Where a bank has said no, we ask whether the problem is the venue, the equipment or the paperwork. Then we try to find lenders who do not share that worry. We work Australia-wide, with venues from remote roadhouses to city laneway bars. If you are buying a whole venue, our hospitality business loans page covers the broader picture, and pubs can look at pub and hotel loans.
An illustration
Illustrative scenario only. A restaurateur is taking over a leased kitchen and needs a combi oven, a cool room and a dishwasher. Some items are new, one is second-hand from a closing venue. A broker could finance the new items through a mainstream asset lender and place the used unit with a lender comfortable with private sales, aligning both settlement dates with the opening week.
Can I finance used hospitality equipment?
Yes, often. Used equipment is common in hospitality, especially from venues that have closed or upgraded. Lenders may set age limits, ask for a deposit or request a technician’s report. If the seller is private, expect extra checks that the equipment is theirs to sell. See used equipment finance for more.
Mistakes to avoid
- Buying a big-ticket item before the finance is approved
- Forgetting installation, delivery and extraction costs
- Choosing a long term for gear that will be obsolete sooner
- Letting repayments clash with your slowest trading months
- Overlooking warranties and service agreements
Documents to have ready
- Supplier quote or invoice
- Lease and venue details
- Recent tax returns, BAS and bank statements
- Photo ID and asset and liability list
- Details of any trade-in or sale of old equipment
If you are short on paperwork, the guide on how to prove income without payslips may help.
What about seasonal and event-driven trade?
Hospitality income rarely arrives in a straight line. A beachside cafe may earn most of its year over summer, a vineyard restaurant peaks around harvest and festival season, and a city bar surges on Thursday to Saturday. Repayments that ignore this pattern can pinch in the slow months. Some lenders will consider seasonal schedules, step-up payments or a balloon at the end of the term. These can ease the quiet periods but they change the total cost, so we compare the options with you rather than offering a single structure.
How do I plan for the full cost of a new kitchen?
The equipment price is only part of the story. Delivery, installation, gas and electrical connections, extraction, plumbing, council or health approvals, staff training and a maintenance plan all add up. Some of these can be included in the finance if they appear on the quote or invoice, while others need to be funded separately. Leaving a buffer in your budget stops a small surprise becoming a big problem. It is worth asking suppliers for fully itemised quotes so the lender can see exactly what is being financed.
Ready to fire up the kitchen?
Sounds like you’re looking for hospitality equipment finance. We’re the lending experts in getting venues the gear they need, so see if you qualify and we will start finding the right fit.
How it works, step by step
- 1
Step 1
Send the supplier quote and tell us about the venue.
- 2
Step 2
We compare ownership and lease structures against your cash flow.
- 3
Step 3
We approach lenders who know hospitality, including those who accept used gear.
- 4
Step 4
You sign, the supplier is paid and the equipment is delivered and installed.
Frequently asked questions
What hospitality equipment can be financed?
Most commercial kitchen and bar items can be considered: combi ovens, grills, fryers, extraction, cool rooms, glass washers, ice machines, coffee machines, POS hardware and furniture. Items that are fixed to the building may be treated differently. Send us the quote and we will tell you how each item is likely to be viewed.
Can a new cafe or restaurant get equipment finance?
It can be possible. Lenders want to see industry experience, a sensible plan, a deposit and a lease. Without trading history, extra security or a guarantor may be requested. We help explain your background and the venue's plan so the lender sees the full picture.
Is it better to lease or buy hospitality equipment?
It depends. Ownership structures suit gear you will keep for years, such as cool rooms and ovens. Leases and rentals can suit fast-changing items or venues that want lower commitment. Tax treatment differs, so discuss it with your accountant. We lay out the options side by side.
Can I finance second-hand kitchen equipment?
Often yes, particularly when it comes from a reputable dealer with an invoice and serial numbers. Private sales need ownership checks. Lenders may limit age or require a deposit. Tell us the make, model and condition and we can approach lenders comfortable with used gear.
Do repayments have to be the same every month?
Not always. Some lenders will consider seasonal patterns, balloon payments or step-up structures, which can suit venues with busy summers or event seasons. Deferred payments usually mean more is owed later, so we talk through the full cost of the pattern rather than only the first few months.
Can I finance equipment if my credit history has issues?
Sometimes. Because the equipment is the security, a few lenders weigh it more heavily than a single credit mark. Expect different terms and perhaps a larger deposit. We ask about the circumstances first and then match you with lenders that look at the whole picture.