Asset finance for restaurants & hospitality fit‑outs — kitchen equipment, EPOS and more

Short answer: Yes — most restaurant and hospitality fit‑outs can be financed through asset finance. Equipment such as ovens, refrigeration, extraction, bar fittings, EPOS terminals and furniture are routinely funded by lenders using hire purchase, leasing and similar structures. UK Business Loans can match hospitality businesses seeking £10,000+ to specialist lenders and brokers so you can get a fast, no‑obligation quote. Get Quote Now

We act as an introducer and do not lend or provide regulated financial advice. Completing the quick enquiry is free and not an application — it’s used to match you with the best lenders/brokers for your project.

Table of contents

• Quick answer — Can you finance a restaurant/hospitality fit‑out?
• What is asset finance and how it works for fit‑outs
• What can be financed in a fit‑out
• Eligibility & what lenders look for
• Typical costs, terms and indicative pricing
• Tax, accounting & capital allowances
• Comparing asset finance vs alternatives
• How the process works with UK Business Loans
• Mini case studies
• FAQs
• Summary & next steps

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Quick answer — Can you finance a restaurant/hospitality fit‑out?

Yes. Asset finance is one of the most common ways hospitality businesses fund fit‑outs. Lenders and specialist brokers routinely finance new and used commercial ovens, refrigeration, dishwashers, extraction and ventilation, bar equipment, furniture and EPOS systems. Asset finance lets you spread the cost over a term that aligns with the equipment’s useful life instead of paying upfront from working capital.

Commonly financed items include bulk kitchen plant, bar fittings, EPOS hardware, and other tangible kit. For a fast initial view of eligibility and likely options, Get a Free Eligibility Check.

What is asset finance and how it works for fit‑outs

Asset finance is a category of business finance where the equipment itself is used to secure the funding. Main structures you’ll see:

• Hire Purchase (HP) — you pay monthly and own the asset at the end of the term (typical for equipment with a long useful life).
• Finance lease — lender owns the asset; you lease it and typically have options at term end. Good for off‑balance considerations depending on accounting rules.
• Operating lease — more like rental; useful for short‑life tech or where you don’t want ownership.
• Sale & leaseback — if you already own equipment, you can sell it to a funder and lease it back to release cash.
• Vendor finance — some equipment suppliers offer finance packages bundled with supply.

For hospitality fit‑outs, lenders will match the repayment profile to the useful life of the items — e.g. heavy kitchen plant might be funded over 3–7 years, while EPOS hardware often has shorter terms. Applications are usually faster than property finance: pre‑qualify within hours, decision in 24–72 hours and funding commonly within 1–2 weeks, subject to paperwork.

Get Started — Free Eligibility Check

What can be financed — typical items in a restaurant fit‑out

• Kitchen equipment: ranges, combi ovens, fryers, grills, steamers.
• Refrigeration & freezers: walk‑in chillers, display fridges, blast chillers.
• Extraction & ventilation: ducts, hoods and safety systems.
• Preparation & cleaning: prep tables, dishwashers, mixers.
• Bar fittings & brewing equipment: back bars, taps, kegs, refrigeration.
• EPOS & IT: terminals, tablets, servers, printers — note: software subscriptions may be treated differently.
• Furniture & décor: tables, chairs, lighting, signage and joinery in some cases.
• Smallwares & specialist items: espresso machines, slicers, specialist ovens.

Some lenders differentiate between plant/fixtures and fit‑out works that are structural. If you need funding for building works rather than equipment, that may sit better with property or development finance. For blended solutions (equipment + small renovation) we can help match you to the right broker.

Eligibility & what lenders look for

Typical criteria lenders assess:

• Minimum deal size: generally £10,000 and upwards (we specialise in £10k+ enquiries).
• Business trading history: many lenders accept relatively new trading businesses, while some prefer 6–12 months of trading or more.
• Turnover and cashflow: lenders look for evidence that the business can service monthly payments.
• Credit profile: business and director credit histories influence pricing and whether guarantors are requested.
• Asset type & age: the nature and expected lifespan of the equipment help determine term and residual value.
• VAT status: VAT‑registered businesses can usually reclaim VAT on purchases (see tax section below).
• Deposit or margin: some deals require a deposit (typically 0–20%).

How to improve eligibility: provide recent management accounts, 3 months’ business bank statements, supplier/invoice quotes for the equipment and a clear use case (new opening, refit, replacement). Specialist hospitality lenders and brokers often accept higher‑risk profiles and can package blended solutions — use our Free Eligibility Check to find those partners.

Typical costs, terms and indicative pricing

Below are broad, indicative figures only. Actual quotes depend on lender, asset, credit profile and market conditions.

• Term lengths: commonly 12–60 months; heavy kitchen equipment often 3–7 years.
• Rates: asset finance rates vary widely — from mid‑single digits for well‑qualified borrowers on secured HP to low‑double digits for higher‑risk deals or shorter terms. These are indicative only; request quotes for exact pricing.
• Deposits & fees: some agreements have an initial payment, documentation fees or administration fees — these will be disclosed by lenders.

Example comparison: a £50,000 oven and refrigeration package financed over 60 months might produce a monthly payment that preserves working capital versus a one‑off cash purchase. To see tailored numbers for your project, Get Quote Now.

Tax, accounting & capital allowances

Tax treatment depends on whether you own the asset and its classification:

• Annual Investment Allowance (AIA): can allow immediate deduction for qualifying plant & machinery up to the AIA limit in the year of purchase — discuss with your accountant.
• VAT: VAT‑registered businesses can usually reclaim VAT on asset purchases when buying outright. For financed purchases, VAT treatment depends on the structure (e.g. HP vs lease).
• Capital allowances vs leasing: ownership (HP) usually allows capital allowances claims; certain lease structures may not.

This is general guidance — check with your accountant about AIA eligibility and the tax consequences for your chosen finance structure.

Comparing asset finance vs alternatives

Quick comparison to help choose the right route:

• Asset finance: Best for tangible equipment, preserves cashflow, options to own. Pros: matched term, potential tax advantages. Cons: asset secures the debt.
• Business loan: Unsecured borrowing can fund multiple uses (fit‑out + working capital) but may have higher rates and affect borrowing capacity.
• Supplier/vendor finance: Convenient and sometimes bundled with supply, but check pricing and flexibility.
• Merchant cash advance / credit card: Fast but typically higher costs — suitable for short‑term cashflow, not long‑term equipment funding.
• Grants or sector schemes: Occasionally available for hospitality sustainability projects — combine with finance where appropriate.

If you’re unsure which option suits your situation, our matching service helps identify the right lenders and solutions. Free Eligibility Check

Step‑by‑step application process with UK Business Loans

1. Complete a short enquiry: business name, finance amount, purpose (equipment/EPOS/fit‑out), estimated values and contact details — takes under 2 minutes. Start your enquiry.
2. We match you: your details go to lenders and brokers specialising in hospitality and asset finance.
3. Receive quotes: partners typically respond quickly with indicative terms and next steps.
4. Choose and complete checks: lender performs final checks, documentation is signed and funds released to supplier or you as agreed.

Typical documents required: ID, business bank statements (usually 3 months), supplier quotation or invoice, latest accounts or management accounts. Initial matching does not affect your credit file; lenders may run soft or hard checks later in the process.

Mini case studies (illustrative)

Example A — New café opening
A café needed £35,000 for espresso machine, refrigeration and EPOS. A hire purchase over 5 years with a small initial deposit preserved working capital, and VAT‑registered status helped with cashflow.

Example B — Pub refurbishment
A pub required £120,000 for kitchen replacement and bar refit. A blended solution combined asset finance for equipment and a short‑term business loan for renovation costs; funding was structured to suit seasonal cashflow.

For a quote tailored to your figures, Get Quote Now.

FAQs

Summary & next steps

Asset finance is a practical, widely used route to fund restaurant and hospitality fit‑outs — from kitchen plant to EPOS and furniture. It preserves cash, spreads cost across useful life and offers flexible structures to suit different assets. If your project is £10,000 or above, complete a short enquiry and we’ll match you to lenders and brokers who specialise in hospitality fit‑outs. Get Quote Now — Free Eligibility Check.

Trust & important information

• UK Business Loans is an introducer — we do not lend or provide regulated financial advice.
• Completing the enquiry is free and not an application; we use your details to match you with suitable lenders/brokers.
• Actual rates and terms vary by lender and business profile. For tax or legal advice speak to your accountant or adviser.

Internal resource: learn more about asset finance at our asset finance page.

1. Can I use asset finance to fund a restaurant or hospitality fit‑out?
Yes — asset finance routinely funds restaurant and hospitality fit‑outs including ovens, refrigeration, extraction, bar fittings, EPOS hardware, furniture and other tangible kit.

2. What types of asset finance are available for hospitality fit‑outs?
Common structures include hire purchase, finance leases, operating leases, sale & leaseback and vendor finance, with terms matched to the asset’s useful life.

3. What specific fit‑out items can be financed?
Typical items funded are kitchen plant (ranges, combi ovens, fryers), refrigeration and blast chillers, extraction/ventilation, dishwashers, prep equipment, bar fittings, EPOS terminals/servers, furniture and specialist smallwares.

4. What loan amounts can I apply for and is there a minimum?
Most specialist lenders and brokers handle deals from around £10,000 upwards, and UK Business Loans focuses on matching enquiries of £10k+ to the right partners.

5. How long are repayment terms and what rates can I expect?
Terms commonly range from 12–60 months (heavy kitchen plant often 3–7 years) with indicative rates from mid‑single digits for well‑qualified borrowers up to low‑double digits for higher‑risk profiles.

6. Can a new business or start‑up secure asset finance for a fit‑out?
Yes — many specialist lenders and brokers finance newer businesses, though pricing, security or guarantees may reflect the higher perceived risk.

7. Is the UK Business Loans enquiry an application and will it affect my credit score or cost me anything?
No — the enquiry is free, not an application, and submitting it does not affect your credit score (lenders may carry out soft or hard checks only later if you proceed).

8. Will lenders require personal guarantees or a deposit for asset finance?
Sometimes — director guarantees and/or deposits (commonly 0–20%) may be requested for newer or higher‑risk applicants, while established businesses with strong profiles may avoid them.

9. Can I reclaim VAT or claim capital allowances on financed equipment?
VAT‑registered businesses can generally reclaim VAT on qualifying purchases and owned assets may attract capital allowances (including AIA), but VAT treatment and tax relief depend on the finance structure so consult your accountant.

10. How quickly can I get quotes and receive funds/equipment through UK Business Loans?
Indicative quotes often arrive within hours from matched lenders or brokers, and subject to paperwork and supplier lead times funding and delivery commonly complete within 1–2 weeks.