Commercial Kitchen Finance

Q: Can I finance a complete kitchen refit?

Yes, most lenders let you bundle all kitchen equipment, extraction and installation into a single finance agreement rather than financing each item separately. This is the most common approach for new restaurant openings and full refurbishments, since the kitchen is specified and quoted as one project by the fit-out contractor. Putting the whole refit on one agreement generally means a single monthly payment and one renewal date, which is simpler to manage through the opening period than several finance facilities running to different schedules across cooking, refrigeration and extraction.

Q: What deposit do I need for commercial kitchen finance?

For hire purchase, most lenders ask for a 10-20% deposit, while finance leases and operating leases can often be arranged with no deposit at all. This matters for a restaurant or catering business in particular, since the kitchen fit-out is usually only one part of an opening budget that also has to stretch to the rest of the fit-out, stock and staff before any revenue arrives. A larger deposit reduces the monthly payment, but many operators prioritise keeping cash available through the early months of trading instead.

Q: How quickly can I get kitchen finance?

Most applications are approved within 24-48 hours, and same-day approval is common for deals under £50,000, which covers a large share of single-site kitchen refits. A full fit-out involving multiple kitchen zones, extraction and installation as one larger project can take longer as the lender reviews the complete specification. Providing an itemised supplier or contractor quote covering every piece of equipment in the kitchen, rather than one bundled figure, is the most reliable way to keep a larger application moving quickly.

Q: Can startups get commercial kitchen finance?

Yes, though options are more limited under two years of trading. A start-up restaurant may need a personal guarantee, a higher deposit, or evidence of a signed lease and business plan to support the application, since the lender has no trading history to assess. Specialist hospitality lenders are generally used to working with first-time restaurant owners, but expect a more detailed application, including projected turnover and confirmation of the premises, than an established caterer would need to provide when simply refreshing an existing kitchen.

Q: What happens at the end of a commercial kitchen finance agreement?

Hire purchase transfers full ownership of the kitchen equipment once the agreement is paid off, which suits a restaurant owner wanting to own it outright. A finance lease usually offers a balloon payment to take ownership, continued rental, or handover to the funder, while an operating lease is return-only, which suits a business wanting to upgrade kitchen equipment regularly rather than run it to the end of its working life. Breakdown risk and hygiene inspection findings, more than a fixed age, tend to drive when kitchen equipment is actually replaced.

Q: What happens if I sell the restaurant or move premises mid-agreement?

Because the finance company retains an interest in the equipment until the agreement ends, whether as owner under a lease or as the party financing your hire purchase balance, moving equipment to new premises or selling the business needs the lender's consent rather than being a straightforward removal job. Most lenders will provide an early settlement figure if the equipment is not moving with you, and where a business sale is involved, some lenders will allow the agreement to be assigned to the incoming owner subject to their own credit assessment.

Spread the cost of commercial kitchen fit-outs from £10,000 to £250,000+ with flexible finance options. HP, lease, or refinance

Can you finance a commercial kitchen?

Yes, commercial kitchens are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £10,000 to £250,000, and most deals are written over 12–60 months with a deposit of around 10–20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

Typical Cost

£10k – £250k

Approval Speed

24–48 hours

Same-day for < £50k

Rates From

5.5% APR

What would a commercial kitchen cost per month?

Commercial Kitchen price (ex VAT) £55,000

Deposit 10%

Agreement term 60 months

Annual interest rate 9%

Balloon payment £0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical commercial kitchen price. Indicative only, not a quote.

Finance options

Hire Purchase (HP)

Rate: From 5.9% APR
Term: 12–60 months
Deposit: 10–20%
Ownership: Yours at the end
Best for: Restaurant owners wanting to own kitchen equipment outright

Finance Lease

Rate: From 5.5% APR
Term: 12–60 months
Deposit: None required
Ownership: Return or buy (balloon payment)
Best for: Tax-efficient, claim 100% of payments against profit

Operating Lease

Rate: From 6.2% APR
Term: 24–48 months
Deposit: None required
Ownership: Return at end
Best for: Upgrade kitchen equipment regularly. Off balance sheet.

Representative example

On a purchase price of £55,000: a 10% deposit of £5,500, then 48 monthly payments of £1,160 at 5.9% APR representative (fixed). Total amount payable £61,180, including the deposit. The rate you are offered depends on your business and the asset.

Machine or specification	Guide price	Type
Rational iCombi Pro 20-2/1	£18,000 – £28,000	Large Combi Oven
Blue Seal G508D Range	£4,000 – £7,000	8-Burner Range
Foster EcoPro G2 EP1440H	£3,500 – £5,500	Double Fridge
Meiko M-iClean H	£10,000 – £16,000	Hood Dishwasher

Tax benefits

Commercial kitchen equipment qualifies for Annual Investment Allowance (AIA), letting you deduct the full cost from taxable profits in year one. HP allows capital allowances. Lease payments are fully deductible from profits.

Bad credit?

Some specialist lenders consider businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

Can I finance a complete kitchen refit?

Yes, most lenders let you bundle all kitchen equipment, extraction and installation into a single finance agreement rather than financing each item separately. This is the most common approach for new restaurant openings and full refurbishments, since the kitchen is specified and quoted as one project by the fit-out contractor. Putting the whole refit on one agreement generally means a single monthly payment and one renewal date, which is simpler to manage through the opening period than several finance facilities running to different schedules across cooking, refrigeration and extraction.

What deposit do I need for commercial kitchen finance?

For hire purchase, most lenders ask for a 10-20% deposit, while finance leases and operating leases can often be arranged with no deposit at all. This matters for a restaurant or catering business in particular, since the kitchen fit-out is usually only one part of an opening budget that also has to stretch to the rest of the fit-out, stock and staff before any revenue arrives. A larger deposit reduces the monthly payment, but many operators prioritise keeping cash available through the early months of trading instead.

How quickly can I get kitchen finance?

Most applications are approved within 24-48 hours, and same-day approval is common for deals under £50,000, which covers a large share of single-site kitchen refits. A full fit-out involving multiple kitchen zones, extraction and installation as one larger project can take longer as the lender reviews the complete specification. Providing an itemised supplier or contractor quote covering every piece of equipment in the kitchen, rather than one bundled figure, is the most reliable way to keep a larger application moving quickly.

Can startups get commercial kitchen finance?

Yes, though options are more limited under two years of trading. A start-up restaurant may need a personal guarantee, a higher deposit, or evidence of a signed lease and business plan to support the application, since the lender has no trading history to assess. Specialist hospitality lenders are generally used to working with first-time restaurant owners, but expect a more detailed application, including projected turnover and confirmation of the premises, than an established caterer would need to provide when simply refreshing an existing kitchen.

What happens at the end of a commercial kitchen finance agreement?

Hire purchase transfers full ownership of the kitchen equipment once the agreement is paid off, which suits a restaurant owner wanting to own it outright. A finance lease usually offers a balloon payment to take ownership, continued rental, or handover to the funder, while an operating lease is return-only, which suits a business wanting to upgrade kitchen equipment regularly rather than run it to the end of its working life. Breakdown risk and hygiene inspection findings, more than a fixed age, tend to drive when kitchen equipment is actually replaced.

What happens if I sell the restaurant or move premises mid-agreement?

Because the finance company retains an interest in the equipment until the agreement ends, whether as owner under a lease or as the party financing your hire purchase balance, moving equipment to new premises or selling the business needs the lender's consent rather than being a straightforward removal job. Most lenders will provide an early settlement figure if the equipment is not moving with you, and where a business sale is involved, some lenders will allow the agreement to be assigned to the incoming owner subject to their own credit assessment.

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Guides and resources

What Is Asset Finance? HP vs Leasing Operating vs Finance Lease Best Asset Finance Companies Close Brothers Review Lombard Review

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For UK limited companies with at least 3 months’ trading and monthly revenue.