Restaurant Asset Finance

There are many potential uses of asset finance for restaurants, including:

• Buying new equipment such as ovens or machines
• Replacing aging or broken equipment
• Expanding operations into new cuisines or territories
• Purchasing of raw materials

What are the benefits of asset finance for a restaurant?

• Reduce cashflow disruption: Asset finance allows you to retain more capital, ready to deploy across your restaurant in the areas it’s required most. 

• Spread the costs: Using finance allows you to budget your outgoings, keeping the monthly costs manageable – taking the pressure off your restaurant. 

• Choose assets based on business needs: Providing you the ability to select the asset based on your restaurants’ needs, rather than your immediate cash budget.

• Replace worn equipment: Financing your restaurant’s assets allows you to replace them when required, as opposed to only replacing equipment when you have the full cash amount. 

• Produce more accurate financial forecasts: Using finance allows you to accurately forecast your restaurants’ financial landscape for the future. 

What are the options for restaurant asset finance?

There are three types of asset finance options for your restaurant:

• Hire purchase 

• Finance lease

• Operating lease

Hire Purchase 

A type of lending that allows you to acquire your restaurant equipment by paying a portion of the cost upfront, and then making regular payments until the balance is paid off. You can use the equipment from the start of the agreement, however you will not technically own the asset(s) until the final payment has been made.

Finance Lease

A finance lease or capital lease is a financial product, in which a leasing company gives operating control of a piece of equipment to your restaurant for an agreed period, and typically at the end of the contract, you either become the owner of the asset, you return the asset to the lender, or you can make alternative arrangements with the lender.

Operating Lease 

An operating lease is a rental agreement that allows restaurants to use equipment for an agreed period of time, without transferring the ownership of the asset. This allows you to use equipment your business may not have the capital to purchase. At the end of the agreement, you return the equipment to the leasing company.