Fit-out finance for restaurants: extraction, refrigeration & dishwashers

Replacing a failing extraction system, upgrading to energy-efficient refrigeration or buying a new commercial dishwasher can cost tens of thousands. Yes — restaurants can usually fund extraction, refrigeration and dishwashers with UK business finance, but the right product depends on what you want to own, the installation requirements and your trading history. If you’re ready to compare options, get a Free Eligibility Check and fast quotes from lenders and brokers matched to hospitality businesses: Get Quote Now — Free Eligibility Check.

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Quick answer — can restaurants use business loans to finance extraction, refrigeration and dishwashers?

Short answer: Yes. Most restaurants can use business finance to buy or lease extraction systems, commercial refrigeration and dishwashers. Equipment and some installation costs are commonly covered by asset finance (hire purchase, finance lease), equipment loans or unsecured business loans. Which product is best depends on whether you want to own the equipment, the scale of installation (e.g. ducting & fire-suppression interfaces), how long you’ve been trading and your cashflow. UK Business Loans connects you to brokers and lenders who specialise in hospitality finance so you can compare offers quickly. Get a Free Eligibility Check.

What “fit-out finance” covers for restaurants

Fit-out and equipment finance for restaurants typically covers:

• Kitchen equipment: extraction hoods, fans, ductwork, ventilation systems, refrigeration (walk-in cold rooms, display fridges, freezers), blast chillers, combi ovens and commercial dishwashers.
• Installation & building work: ducting, structural works, electrical upgrades, fire-suppression interface and contractor installation fees — some lenders will include these costs within a single finance package if quoted by the supplier.
• Ancillaries: delivery, disposal of old units, commissioning, testing and certification costs, and (where applicable) VAT.

Important: extraction and ventilation often need certified installers and building-control or planning approvals. Lenders commonly ask for supplier quotes, installation contracts and compliance certificates before advancing funds.

Types of finance that can fund extraction, refrigeration and dishwashers

There are several common finance products used by restaurants. Which suits you depends on ownership preference, cashflow and balance-sheet considerations.

Asset finance / equipment finance (hire purchase, finance lease)

• Best for: buying equipment while spreading cost. Lenders often take a lien over the asset until final payment.
• Pros: predictable monthly payments, can include installation costs if supplier quotes are provided.
• Cons: the asset typically secures the finance; warranty and maintenance remain important.

Hire purchase

• Best for businesses that want to own equipment at term end.
• Pros: straightforward ownership transfer after final payment; fixed payments.
• Cons: initial deposit sometimes required; asset age affects terms.

Leasing (operating lease)

• Best for: businesses that want to upgrade regularly and prefer off-balance-sheet treatment.
• Pros: lower upfront cost, flexibility to replace at lease-end.
• Cons: you don’t own the equipment; long-term cost can be higher than buying.

Unsecured business loans / term loans

• Best for: funding equipment and installation where you prefer not to grant a specific asset lien.
• Pros: can fund broader fit-out works; avoids asset-specific security in some cases.
• Cons: typically higher rates than secured asset finance; lenders will assess creditworthiness carefully.

Other options

• Business overdrafts or short-term loans for emergency repairs or small upgrades.
• Invoice finance or merchant cash advances — useful for cashflow but less common for capital equipment purchase.
• Refurbishment loans / commercial mortgages — for major property-wide fit-outs where lenders treat work as property improvement.

Eligibility & what lenders and brokers look for

Typical requirements when financing restaurant fit-outs:

• Trading history: many lenders ask for 6–12 months trading; some specialist lenders will consider newer businesses but on different terms.
• Credit profile: business and director credit checks are common.
• Financials: bank statements (often 3–12 months), management accounts or profit & loss statements.
• Supplier quotes & invoices: detailed quotations for equipment + installation are essential.
• Permits & compliance: for extraction systems, lenders may require proof of planning/building control, installer accreditation and commissioning certificates.
• Insurance: lenders expect appropriate business and equipment insurance in place.

Note: UK Business Loans arranges and introduces enquiries to lenders and brokers for loans from around £10,000 upwards. Completing our enquiry is a way to get matched — it is not a loan application and does not itself affect your credit score. Start a Free Eligibility Check.

Tax, grants & sustainability considerations

• Capital allowances / AIA: many equipment purchases can qualify for capital allowances or Annual Investment Allowance — check with your accountant to understand the tax treatment.
• Energy-efficient incentives: upgrading to low-energy refrigeration or condensing boilers may qualify for grants or preferential finance schemes; some lenders are more favourable to green equipment.
• VAT: VAT on equipment and installation may be recoverable depending on your VAT status — lenders can include VAT in the finance amount if needed.
• Compliance & safety: improperly specified extraction systems can lead to regulatory issues; having compliant quotations and certified installers speeds the finance process.

Practical steps to secure finance for extraction, refrigeration & dishwashers

Follow this checklist to make the process quicker:

1. Get detailed supplier quotes that separate equipment cost, installation and commissioning fees — include model numbers and warranties.
2. Collect business financials: recent bank statements, accounts and any management accounts you have.
3. Decide what you want: ownership at the end (hire purchase), flexibility to upgrade (leasing), or a single repayment plan (term loan).
4. Confirm compliance: ensure proposed installers are certified and provide required building-control or fire-safety documentation.
5. Compare offers: look at deposit, term, total cost, interest rate (APR), early settlement fees and ownership terms.
6. Submit a short enquiry so brokers/lenders can prepare tailored quotes quickly — Get Quote Now.

How UK Business Loans helps

UK Business Loans does not lend money. We make it faster for restaurant owners to find the right finance by matching your requirements with lenders and brokers who specialise in hospitality and equipment finance. Complete a short enquiry and we’ll connect you with partners that can supply quotes and next steps — usually within hours or the same business day. Our service is free and there’s no obligation to proceed. Get Started — Free Eligibility Check.

Real-life examples

These anonymised examples show typical funding routes:

• City bistro — extraction replacement: a 20-cover bistro replaced an extraction fan, hood and ducting. The owner used asset finance (hire purchase) to spread the cost over 4 years. The lender required installer certification and the supplier invoice before advance.
• Energy upgrade — refrigeration: a neighbourhood restaurant upgraded to energy-efficient walk-in freezers and blast chiller. The broker identified a hire purchase option combined with a small green incentive that reduced monthly payments and improved long-term energy bills.
• Dishwasher fleet — leasing: a multi-site operator leased commercial dishwashers to keep lifecycle management centralised, allowing regular upgrades and reduced maintenance headaches.

If your project is a full kitchen fit-out rather than equipment-only, consider specialist fit-out finance — learn more about fit-out finance and how it can package installation with equipment purchases at our dedicated fit-out finance page for hospitality: fit-out finance.

Frequently asked questions

Ready to upgrade your kitchen?

Whether you’re replacing old extraction, upgrading fridges to cut bills, or purchasing new dishwashers, the right finance can make the investment manageable. Complete a short enquiry and we’ll match you with lenders and brokers experienced in hospitality equipment and fit-outs. It’s free and there’s no obligation: Get Quote Now — Free Eligibility Check.

Important: UK Business Loans is an introducer — we do not lend money or provide regulated financial advice. We connect businesses with lenders and brokers who can provide quotes and handle applications. All offers and terms are provided by those partners and depend on their eligibility criteria. For tax or legal advice speak to an accountant or qualified advisor.

1. Can I use a business loan to fund extraction systems, refrigeration or commercial dishwashers?
Yes — UK restaurants commonly fund extraction, commercial refrigeration and dishwashers using equipment finance, hire purchase, leasing or unsecured business loans depending on ownership and cashflow preferences.

2. Which finance type is best for restaurant kitchen equipment: hire purchase, lease or an unsecured loan?
Hire purchase is best if you want to own the equipment at term end, leasing suits regular upgrades and off‑balance‑sheet treatment, and unsecured term loans can fund equipment and installation without an asset lien but usually at higher rates.

3. Can installation, ducting and fire‑safety works be included in fit‑out finance?
Often yes — many lenders will include installation and associated building works in a single finance package if you provide detailed supplier quotes and installation contracts.

4. What documents will lenders ask for when applying for fit‑out or equipment finance?
Expect supplier quotations and invoices, recent business bank statements, management accounts or filed accounts, director ID, installer accreditation or compliance certificates (especially for extraction), and proof of insurance.

5. How long does approval for fit‑out finance typically take?
Times vary — brokers often match you with lenders within hours and some lenders approve in a day, but full approval and fund release can take several days to weeks depending on documentation and compliance checks.

6. Do I need to own the premises to get fit‑out finance for extraction or refrigeration?
No — you don’t usually need to own the premises, but lenders will consider lease length and may require landlord consent for substantial structural or long‑term security arrangements.

7. Can VAT and grants be included or recovered when financing kitchen equipment?
VAT can often be included in the finance amount and may be recoverable depending on your VAT status, while energy‑efficient upgrades may qualify for grants or preferential finance schemes — check with your accountant and suppliers.

8. Can I get fit‑out finance with a poor credit history or limited trading history?
Possibly — specialist lenders and brokers we work with may consider adverse credit or newer businesses, but expect stricter terms, higher rates or larger deposits.

9. Will completing a UK Business Loans enquiry affect my credit score?
No — submitting our free eligibility check/enquiry does not affect your credit score, although individual lenders or brokers may perform credit checks if you proceed with an application.

10. Are there specific compliance requirements for financing extraction and ventilation systems?
Yes — extraction and ventilation usually require certified installers, building‑control or planning approvals and commissioning certificates, and lenders typically request this evidence before releasing funds.