Quick answer & summary

If you need ovens, refrigeration, extraction, dishwashers or other commercial kitchen kit for a restaurant, pub, hotel or catering business, UK Business Loans can quickly match you with brokers and lenders that specialise in asset finance and hire purchase. We’re an introducer — we don’t lend ourselves. Use our short enquiry to receive a free eligibility check and receive indicative quotes from suitable providers so you can compare monthly payments, deposits and VAT treatment before you commit. Free Eligibility Check — Get Started

What is asset finance and hire purchase?

Asset finance is a group of products that help businesses acquire equipment without paying the full purchase price up front. For kitchen and catering equipment the most common options are:

• Hire Purchase (HP) — you pay an agreed deposit (sometimes 0%) and fixed monthly instalments; ownership transfers to you once the final payment is made.
• Finance lease — the financier owns the asset during the term and you pay rentals; you may have options to purchase or hand the asset back.
• Operating lease / contract hire — effectively a longer rental where you typically don’t take ownership, useful if regular upgrades are important.
• Asset refinance — raising cash by using existing equipment as security.

These solutions let you spread the cost of essential commercial equipment while preserving working capital for other parts of your fit‑out.

Why asset finance or hire purchase suits kitchen & catering fit‑outs

Kitchen and catering fit‑outs often involve significant one‑off spends. Asset finance and HP are popular for several practical reasons:

• Cash preservation: keep funds available for stock, staff and operational costs by paying monthly rather than one large invoice.
• Predictable budgeting: fixed payments make it easier to forecast costs during busy or seasonal trading periods.
• Faster installation: lenders will often fund the supplier direct so installation and commissioning can proceed quickly.
• Tax and VAT planning: many businesses can structure deals to optimise VAT payments and claim capital allowances — always confirm with your accountant.
• Upgrade flexibility: leases and some HP structures make it simpler to upgrade technology-heavy kit in future.

To explore options and see indicative monthly costs, start a free eligibility check: Get Quote Now.

Typical equipment covered (examples)

Lenders and brokers we introduce routinely finance a wide range of commercial equipment used in hospitality fit‑outs, for example:

• Combi ovens, ranges, blast chillers and pizza ovens
• Commercial refrigeration — chillers, freezers and walk‑in cold rooms
• Extraction and ventilation systems, canopies and ducting
• Dishwashers, glasswashers, prep counters and refrigeration displays
• Beverage and espresso machines, bar equipment and POS terminals
• Smallwares, stainless‑steel benches and heavy‑use specialist kit
• Sometimes supply, installation and associated fixtures & fittings as part of a single package

If your project includes broader shop or venue work, you may also find fit‑out finance options that combine equipment with installation and FF&E — read more about fit‑out finance on our related page: fit‑out finance.

How terms typically work — what to expect

Each lender or broker sets its own terms, but here are common elements you’ll encounter for HP and asset finance on catering equipment:

• Deposit / upfront VAT: hire purchase often requires VAT on the full equipment cost to be paid up front; deposits vary (0–30%).
• Term length: usually 1–7 years for catering equipment depending on the asset’s expected life and cost.
• Interest / rates: lenders quote monthly rates or APR; pricing depends on business size, trading history and security offered.
• Ownership: HP gives ownership after final payment; leases typically retain financier ownership during the term.
• Credit and affordability checks: formal checks are completed by the lender before funding.
• Early settlement: typically possible but ask about admin fees and any settlement discounts.

Want realistic monthly estimates based on the equipment you need? Get a free eligibility check and we’ll match you with lenders who can provide indicative pricing.

Who can apply — eligibility checklist

UK Business Loans introduces businesses seeking finance from around £10,000 and upwards. Typical applicants who get good traction include:

• Limited companies, partnerships and LLPs operating in hospitality, catering or events
• Established restaurants, pubs, hotels and catering firms — many lenders prefer at least 6–12 months trading
• New ventures and pre‑trading projects — some specialist funders will consider strong director financials or supplier contracts
• Businesses with recent management accounts, supplier quotes and clear plans for equipment use

Every lender has a different appetite for sector, age and credit profile. Our matching process directs your enquiry to partners who are most likely to be able to help. Free Eligibility Check — Get Started

Pros and cons — is hire purchase / asset finance right for you?

Pros

• Preserves cash and working capital
• Allows immediate use of equipment while spreading cost
• Ownership at the end of HP (if chosen), which suits high‑use kitchen assets
• Predictable monthly payments for budgeting

Cons

• Total cost may be higher than paying cash (interest and fees)
• VAT on HP can be payable up front on full purchase price
• Contractual commitments — ending a contract early can carry costs
• Default risk: equipment can be repossessed if payments aren’t met

If you’re weighing options, our broker partners can show comparisons with alternatives such as capital loans, vendor finance or short‑term leasing so you can choose with clarity. Get Quote Now

How UK Business Loans connects you — fast, simple, secure

We’re an introducer that helps you avoid filling multiple applications and speeds up the search for the right finance partner. Typical process:

1. Complete a short enquiry — basic business details, equipment type and approximate value (takes under 2 minutes).
2. We match you — your details are screened and sent to a small number of lenders/brokers on our panel who specialise in catering and fit‑outs.
3. Lenders contact you — expect an email or call with an initial quote and questions to firm up the numbers.
4. Compare and decide — review itemised costs, VAT treatment and contract terms. You are under no obligation to accept any offer.
5. Formal application & funding — the chosen lender will carry out checks and, if approved, release funds so suppliers can deliver and install equipment.

Start the process now to receive tailored, comparable quotes: Free Eligibility Check — Get Started

What you’ll need to complete our short enquiry

Having these ready speeds up matching:

• Business name and registration number (if a limited company)
• Type of business (restaurant, pub, hotel, caterer)
• Estimated equipment cost or supplier quote
• Trading history (months/years) and approximate monthly turnover
• Preferred delivery/installation timeframe

Once you submit, we’ll connect you with lenders who can provide indicative quotes quickly. Get Quote Now

Frequently asked questions

Will submitting an enquiry affect my credit score?

No — submitting an enquiry via UK Business Loans does not affect your business credit score. Individual lenders may carry out credit checks later if you proceed with an application.

Do you charge to introduce me to lenders?

No — our introduction service is free for business owners. We are paid by lenders or brokers when a transaction completes.

Can I include installation and supplier costs in the finance?

Often yes — many lenders will consider supplier and installation costs as part of the financed package. Provide a full supplier quote when enquiring so partners can give accurate pricing.

How quickly can I get equipment after approval?

Funding timelines depend on the lender and supplier but many projects move from approval to funding within days, with delivery times then set by the supplier and installation complexity.

What’s better for my business: hire purchase or lease?

That depends on whether you want ownership (HP), the flexibility to upgrade (lease), VAT treatment and cashflow preferences. Our matched brokers will explain the pros and cons for your circumstances.

Final steps & important reminder

If you’re planning a kitchen or catering fit‑out, getting indicative finance quotes early will help you decide scope and timing. Complete our short enquiry now for a free eligibility check and to be connected quickly with specialist lenders and brokers for equipment finance from £10,000 upwards. Free Eligibility Check — Get Started

Important: UK Business Loans is an introducer — we do not lend, and we do not provide regulated financial advice. We connect businesses to lenders and brokers who will contact you to discuss terms and formal applications. Any lender you speak with may carry out credit and affordability checks before making an offer. The information on this page is for general guidance only — seek independent tax and accounting advice for VAT or capital allowances.