Hotels: Asset & Equipment Finance for Kitchens, Laundry, HVAC, Boilers & PMS/IT

Summary / TL;DR

Yes — hotels routinely use asset and equipment finance to fund kitchens, laundry systems, HVAC, boilers and PMS/IT. Lenders commonly finance new (and in many cases good-condition used) catering equipment, washing machines and dryers, air handling units, boilers and the hardware that supports property management systems. Suitable products include hire purchase, finance leases, operating leases and vendor or software finance. If you want a quick, no‑obligation eligibility check and quotes tailored to your hotel (from around £10,000+), complete a Free Eligibility Check to get matched with lenders and brokers: Get Quote Now — Free Eligibility Check.

Why hotels use asset & equipment finance

Hotels use asset and equipment finance because it preserves cash, spreads the cost of high-value items and helps manage seasonal demand without a large one-off capital outlay. Typical benefits include:

• Preserve working capital — keep cash for operations or unexpected costs.
• Spread payments — predictable monthly payments make budgeting easier during quiet months.
• Upgrade flexibility — leases or rental agreements let you refresh technology (PMS/IT) more often.
• Potential VAT handling — depending on product, VAT may be spread or reclaimed (seek accountant advice).
• Unlock capital — sale-and-leaseback can free up cash tied in existing equipment.

Real-world example: an independent 60-room hotel replaced a failing boiler plant using a 5-year hire purchase agreement. They avoided a large capital spend, reopened rooms faster and kept cash available for seasonal staffing.

What can be financed — detailed eligibility

Most lenders accept assets that have a useful economic life beyond the finance term and retain resale (residual) value. Below are common hotel asset categories and what lenders typically consider.

Kitchens & catering equipment

• Commercial ovens, ranges, fryers, combi ovens, griddles, blast chillers.
• Refrigeration: walk-in fridges/freezers, display units.
• Extraction/ventilation, stainless steel prep equipment and, in many cases, manufacturer-backed fit-out packages.
• Eligibility tips: new equipment and OEM warranties improve terms; some lenders accept good-condition used kit.

Laundry equipment

• Washer-extractors, tumble dryers, presses, folding and sorting systems, coin/vending machines.
• Commercial laundries are commonly funded via hire purchase or operating leases.

HVAC & boilers

• Boilers, chillers, heat pumps, air handling units, ducting and controls.
• Note: projects with significant installation or building works may need supplier contracts and evidence of installation by qualified engineers.

PMS, IT & fit-out

• POS terminals, servers, tablets, Wi‑Fi access points, handheld check‑in devices and integrated PMS hardware.
• Software-only deals are treated differently — lenders often finance hardware + software together, or use specialist tech finance or subscription/SaaS funding.

Ancillary & specialist

• Generators, lifts, water-treatment, AV systems and safety/ security equipment.

Common finance types used by hotels

Choosing the right product depends on the asset type and your balance sheet preferences. A compact comparison:

Finance type	Typical term	Deposit	Best for
Hire Purchase (HP)	2–7 years	0–20% (varies)	Long-life assets where you want ownership at the end (e.g. boilers, kitchen).
Finance Lease	2–7 years	Often none but higher rentals	Assets where ownership is not necessary; can be cost-effective vs HP.
Operating Lease / Rental	1–5 years	Typically none	Fast-obsolescence items (PMS/IT), short-term use or off-balance-sheet preference.
Refinance / Sale & Leaseback	2–7 years	None	Unlock capital from existing equipment.
SaaS / Software finance	1–5 years	Varies	PMS subscriptions, licences, combined hardware/software projects.

What lenders look at — how to improve your chances

Lenders evaluate both the business and the asset. Typical checklist items:

• Business trading history and age (established hotels and groups have stronger lender options).
• Annual turnover and recent profitability (turnover bands are important).
• Credit profile (director and business credit checks may apply).
• Asset condition, age and useful life (warranty and maintenance records help).
• Supplier quotations, installation contracts and lead times.
• Seasonality and occupancy trends (provide management accounts or forecasts if seasonal).

Before you contact lenders prepare: supplier quotes, photos/spec sheets, latest accounts, bank statements and site/service history for existing equipment. For multi-site groups or franchised operations, lenders may request group-level financials.

Costs, VAT and accounting impact — a summary

Costs and tax treatment depend on the product and your accounting policies. Key points:

• Interest and fees vary by lender and business risk — pricing reflects credit risk, asset type and term.
• VAT: on hire purchase you usually pay VAT up front on the full asset or on each invoice; some leases include VAT on rentals. VAT recovery depends on your VAT status — check with your accountant.
• Accounting: hire purchase and finance leases are often capitalised; operating leases may be treated differently depending on accounting standards—confirm with your finance adviser.

This is general information only — speak to your accountant or the selected lender/broker for specific tax and accounting advice.

When asset finance may NOT be the best option

Consider alternatives if:

• Your need is for very small or consumable purchases (short-term working capital may be better).
• The asset life is shorter than reasonable finance terms (short-lived items may be better rented or paid cash).
• There are better routes such as grants, energy‑efficiency funding (for heat pumps/green upgrades) or vendor promotions.

How to apply — step by step

1. List the assets you want to finance and get supplier quotes (or a project spec for fit-outs).
2. Confirm affordability and check with your accountant about VAT/ accounting treatment.
3. Complete our short enquiry — it’s a Free Eligibility Check: Get Quote Now — Free Eligibility Check. (Enquiry is not an application; it helps us match you to lenders/brokers.)
4. Matched lenders request documents and run eligibility checks.
5. On approval, finance completes and supplier is paid so you can proceed with supply/installation.

Typical response times are fast — many businesses hear back within hours during working days.

Typical hotel projects we help finance

• Boutique hotel kitchen refit: Hire purchase for ovens, refrigeration and extraction to modernise back‑of‑house with predictable monthly costs.
• Holiday park laundry upgrade: Operating lease to replace washers/dryers with maintenance included to avoid capital spend.
• City centre hotel PMS & terminals: Tech finance combining terminals and tablets with a software subscription funded over a term so CAPEX is minimised.

Frequently asked questions

Q: Can I use asset and equipment finance to fund kitchen, laundry, HVAC, boilers or PMS/IT?

A: Yes. Asset and equipment finance is commonly used for all these categories. Lenders look at the asset’s useful life, condition, supplier guarantees and your trading profile. Hardware and combined hardware/software packages are commonly financed; software-only projects may need specialist tech finance.

Q: Is it possible to finance kitchen, laundry, HVAC, boilers, or PMS/IT through asset and equipment finance?

A: Yes. Many lenders will finance new and good-condition used equipment across these categories. You should supply manufacturer quotes, installation plans for plant room projects and specifications for IT/PMS to speed up approvals.

Q: Does asset and equipment finance cover items like kitchen, laundry, HVAC, boilers, or PMS/IT?

A: Yes. Coverage varies by lender and product; factors include expected useful life, warranty, residual value and whether installation involves building works. For bespoke fit-outs, lenders may ask for supplier contracts and staged drawdown arrangements.

Q: Are kitchen, laundry, HVAC, boilers, or PMS/IT eligible under asset financing?

A: Generally yes — hotels routinely secure finance for these assets. Eligibility drivers are the asset’s age, condition, supplier warranties and the hotel’s trading history. For tailored options, submit a Free Eligibility Check and we’ll match you to brokers or lenders suited to hospitality needs: Free Eligibility Check.

Note: Submitting an enquiry is not a loan application. It is a short form we use to find lenders or brokers likely to offer the best quotes. Completing the enquiry does not affect your credit score.

Ready to fund your hotel equipment?

If you’re planning a kitchen refit, a boiler replacement ahead of winter, an HVAC upgrade to improve guest comfort, or a PMS rollout across your property, we can help match you with the right lenders and brokers. Our service is free and no‑obligation. We introduce you to suitable finance partners and explain next steps.

Get Quote Now — Free Eligibility Check (takes under 2 minutes). We commonly arrange loans and finance from around £10,000 and upwards and will connect you to the providers most likely to help.

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For hospitality lenders who specialise in fit-out and equipment funding, see our industry resource on hotels business loans for broader guidance and industry-specific options.

1. Q: Can hotels use asset and equipment finance to fund kitchens, laundry, HVAC, boilers or PMS/IT?
A: Yes — hotels routinely finance kitchen and catering equipment, laundry systems, HVAC and boilers, plus PMS/IT hardware (and often combined hardware/software deals) through asset and equipment finance.

2. Q: Which finance types are best for hotel equipment like boilers, ovens or POS terminals?
A: Hire purchase is common for long‑life assets like boilers and kitchen kit, operating leases suit fast‑obsolescence items such as PMS/IT, and finance leases sit between these depending on ownership and balance sheet preference.

3. Q: What minimum amount can I typically borrow for hotel equipment finance?
A: Most lenders and brokers we work with commonly arrange asset finance from around £10,000 upwards, with larger facilities available for multi‑site groups.

4. Q: Will submitting a Free Eligibility Check or enquiry affect my credit score?
A: No — the short enquiry is not a loan application and does not affect your credit score; credit checks may only be run by lenders if you proceed.

5. Q: What documents do lenders usually require to approve hotel equipment finance?
A: Lenders typically ask for supplier quotes, equipment spec sheets/photos, recent accounts, bank statements, and installation or maintenance contracts where relevant.

6. Q: Can I finance used or second‑hand kitchen and laundry equipment?
A: Many lenders will consider good‑condition used equipment with evidence of maintenance, warranty or residual value, though terms may vary versus new kit.

7. Q: How is VAT handled on asset finance for hotel equipment?
A: VAT treatment depends on the product — hire purchase may require VAT up front while some leases include VAT on rentals, and VAT recovery depends on your VAT status so consult your accountant.

8. Q: How long does it take to get hotel equipment finance from enquiry to funding?
A: Response times are often very fast (many hear back within hours), with approvals and supplier payment completed in days to weeks depending on documentation and installation complexity.

9. Q: Can I finance PMS, software subscriptions or SaaS for my hotel?
A: Software‑only deals often need specialist tech or SaaS finance, but lenders commonly fund combined hardware/software packages or subscriptions via tailored tech finance products.

10. Q: Is UK Business Loans a lender and are the partners regulated?
A: No — UK Business Loans is a free introducer that connects you to reputable, FCA‑regulated lenders and brokers who provide the actual finance.