Can I get financing for a cold room, refrigeration upgrade or temperature-controlled storage?
Summary: Yes—UK food businesses can usually access finance for cold rooms, refrigeration upgrades and temperature-controlled storage. The right option depends on project size, business turnover and credit profile. Typical solutions include equipment (asset) finance, hire purchase, leasing, business loans and specialist green funding for energy-efficient upgrades. If you want tailored options fast, complete a Free Eligibility Check and we’ll match you with lenders and brokers who specialise in the food sector: Get Quote Now — Free Eligibility Check.
Important: UK Business Loans is not a lender or regulated financial adviser. We act as an introducer and will share your enquiry with lenders and brokers who can provide quotes. Information on this page is general guidance and not financial or tax advice.
Why temperature-controlled equipment matters for food businesses
Proper cold storage and reliable refrigeration are fundamental for food safety, legal compliance (HACCP and food hygiene standards), reducing waste and protecting margins. Upgrading to modern compressors, more efficient condensers or a properly insulated walk-in cold room can extend shelf life, reduce energy bills and enable growth — for example enabling larger batch production, new product lines or longer distribution ranges.
Because refrigeration equipment is capital-intensive and often requires professional installation, many businesses choose to finance rather than pay cash so they can upgrade sooner and preserve working capital for operations and stock.
Common projects that businesses finance
- Walk-in cold rooms and industrial freezers
- Blast chillers and blast freezers
- Plantroom upgrades (compressors, condensers, glycol systems)
- Temperature-controlled racking and storage systems
- Refrigerated vehicles and portable refrigerated units
- Energy-efficiency projects (heat recovery, variable speed drives, green controls)
Can I get finance for these projects? — Short answer
Yes — most established UK food businesses can obtain finance for refrigeration and temperature-controlled storage projects. Eligibility depends on the lender, the size and type of equipment, business age, turnover and credit profile. For projects starting at around £10,000 and upwards you’ll find a wide range of asset finance, leasing and loan options tailored to the food sector.
Which types of finance are available?
Overview (what each is best for)
| Product | Best for | Ownership & VAT |
|---|---|---|
| Asset finance / Equipment finance | Most cold rooms / plantroom equipment | Ownership option; VAT can often be included |
| Hire Purchase (HP) | Buy and own at end of term | Ownership transfers after final payment; VAT treatment varies |
| Finance Lease / Operating Lease | Preserving capital & avoiding ownership | No ownership; VAT often charged on rentals |
| Secured / Unsecured Business Loan | Large installs or combined fit-out + equipment | Usually borrower owns the asset; VAT separate |
| Green loans & energy-efficiency funding | Energy-saving refrigeration upgrades | May include favourable rates and grants |
| Invoice finance / Working capital | Bridge cashflow while waiting for payment | Not specific to asset purchase |
Key points
- Asset finance and hire purchase are common for refrigeration because the equipment itself acts as security.
- Leasing keeps equipment off your balance sheet in some accounting treatments and can include maintenance packages.
- Green finance options and grants may be available for energy-efficient upgrades — check local and national schemes.
Typical loan sizes, terms & example costs
Project sizes vary widely. Typical ranges we encounter:
- Smaller walk-in cold room: from around £10,000–£30,000
- Medium facility (multiple chillers, bakery/commercial kitchen): £30,000–£150,000
- Large temperature-controlled warehouse or distribution unit: £150,000–£1,000,000+
Typical terms:
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Step 2
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Step 3
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You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
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- Equipment finance / HP: 2–7 years
- Business loans (asset-backed): 3–10 years; property-backed loans can be longer
- Leases: 2–7 years depending on supplier and asset life
Illustrative example (example only)
Buying a £40,000 walk-in cold room on a 4‑year hire purchase at a representative APR might result in monthly payments around £950–£1,100 depending on deposit and rate. This is illustrative — exact figures depend on financing terms and credit profile. For precise quotes Get Quote Now — Free Eligibility Check.
What lenders look for (eligibility checklist)
To assess an application lenders typically check:
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
- Company type and time trading (many lenders prefer at least 12 months trading)
- Annual turnover and gross margin
- Business and director credit history
- Supplier invoice or detailed quote and installation plan
- Deposit or deposit percentage (some asset finance requires 0–20% depending on provider)
- Maintenance/service arrangements (improves lender confidence)
- Energy-efficiency evidence for green funding (projected savings, spec sheets)
If your trading history or credit record is imperfect, specialist brokers can still help place deals with lenders who accept higher risk profiles.
How to prepare a successful finance application
Gathering the right documents speeds approval. Typical checklist:
- Latest 2–3 years company accounts (or management accounts if more recent)
- Business bank statements (3–6 months)
- VAT returns (if applicable)
- Valid supplier quotation with full specification, delivery & installation details
- Project cashflow forecast showing how repayments will be met
- Details of any existing finance or security over assets
- Director ID (passport/driving licence) and proof of address
Tip: obtain 2–3 supplier quotes and include expected energy/maintenance savings for green funding applications — it strengthens your case.
Tax, accounting and operational considerations
Some points to discuss with your accountant:
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- Capital allowances and the Annual Investment Allowance (AIA) may allow tax relief on qualifying equipment. See HMRC guidance for details.
- Leasing vs buying affects balance sheet and profit & loss differently—ask your accountant for the impact.
- Budget for installation costs, electrical upgrades, planning or building control and compliance testing (HACCP).
Note: this is not tax advice—speak with a qualified accountant for tailored guidance.
Pros & cons: finance vs paying cash
Pros
- Preserves working capital and cash reserves
- Allows earlier upgrade and revenue improvements
- Potentially tax-efficient depending on structure
Cons
- Interest and fees increase total cost
- Possible loan covenants or security requirements
- Missing the simple ownership advantage of paying cash
Speak to a specialist broker to weigh options for your business model and cashflow.
Real-life examples
Example 1 — Independent bakery
A bakery needed a new walk-in chiller to increase production. Project cost: £28,000. Solution: 4‑year hire purchase with a small deposit. Result: predictable monthly payments, immediate capacity increase and reduced product waste.
Example 2 — Regional food wholesaler
A wholesaler upgraded a large temperature-controlled storage unit including new compressors and racking. Project cost: £320,000. Solution: a blended package of asset finance and a medium-term business loan arranged via a specialist broker. Result: improved distribution range and lower energy bills after installing variable speed drives and a heat-recovery system.
How UK Business Loans helps
We make finance simple: complete a short enquiry and we’ll match your project with lenders and brokers that specialise in the food industry and refrigeration projects. Our service is free and there’s no obligation to proceed.
- Complete the quick enquiry (takes around 2 minutes).
- We match you with suitable lenders/brokers based on your project, turnover and credit profile.
- Receive quotes and discuss terms directly with the lender or broker.
Ready to see options? Get Quote Now — Free Eligibility Check
For more on finance for food businesses see our industry page on food industry business loans.
FAQs
How quickly can I get finance for a cold room?
After you submit an enquiry you can often receive initial contact within hours during business days. Final approval depends on documentation and the chosen lender — typically days to a few weeks.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Can I finance installation and VAT?
Many lenders will include installation and VAT in the finance amount, though VAT treatment varies. State this clearly on supplier quotes so lenders can price correctly.
Are there grants for refrigeration upgrades?
Occasionally — particularly for energy-efficiency upgrades or low-carbon projects. Check gov.uk or speak to a specialist broker about current schemes.
Will enquiring affect my credit score?
Submitting an enquiry to UK Business Loans does not affect your credit score. Lenders may perform credit searches later if you progress with an application.
Next steps
To get tailored quotes for your cold room or refrigeration upgrade:
- Click Get Quote Now — Free Eligibility Check.
- Complete the short enquiry (project value, contact details and a supplier quote if available).
- We’ll match you to lenders/brokers and you’ll receive quotes to compare — no obligation to proceed.
We only handle enquiries for projects from around £10,000 upwards. If you prefer to speak with us first, use the contact details on our site.
Reminder: UK Business Loans is not a lender or regulated financial adviser. We introduce your enquiry to lenders and brokers who can provide finance options. Read our Privacy Policy for how we handle your data.
Author: UK Business Loans Content Team — helping UK food businesses access specialist finance options. Date published: 2025-10-30. Last updated: 2025-10-30.
1. Can I get financing for a cold room, refrigeration upgrade or temperature-controlled storage?
Yes — most UK food businesses can access finance for cold rooms and refrigeration upgrades (typically from around £10,000) via asset finance, hire purchase, leasing, business loans or specialist green funding, subject to turnover and credit profile.
2. Which finance option is best for temperature-controlled equipment — asset finance, hire purchase or leasing?
Asset finance or hire purchase is common when you want eventual ownership, while leasing preserves capital and may include maintenance, with the best choice depending on cashflow, tax position and equipment life.
3. How much can I borrow and what are typical loan terms for refrigeration projects?
Project sizes typically range from £10,000–£30,000 for small walk-in units to £150,000+ for large facilities, with terms usually 2–7 years for equipment finance and 3–10 years for business loans.
4. Can installation costs and VAT be included in the finance amount?
Many lenders will include installation and VAT in the financed sum, but VAT treatment and inclusion vary so you should state these costs clearly on supplier quotes.
5. Are there grants or green funding options for energy-efficient refrigeration upgrades?
Yes — there are occasional grants and specialised green loans for energy-efficiency projects (eg. variable speed drives, heat recovery), and a broker can help identify current schemes and eligibility.
6. How quickly will I hear back and how long does approval take?
After you submit an enquiry you can often receive initial contact within hours on business days, with final approval typically taking from a few days to several weeks depending on documentation and lender checks.
7. What do lenders typically look for when assessing finance for refrigeration projects?
Lenders usually check company trading history (often 12+ months), turnover, director and business credit history, supplier quotes, deposit amount, and any maintenance or energy-efficiency evidence.
8. Will submitting an enquiry via UK Business Loans affect my credit score or count as a loan application?
No — submitting an enquiry to UK Business Loans is not a loan application and does not affect your credit score; lenders may perform credit searches only if you progress with an application.
9. Can start-ups or businesses with imperfect credit still get finance for cold rooms?
Yes — some lenders and specialist brokers work with start-ups and higher-risk profiles, though terms, rates or deposit requirements may be less favourable than for established businesses.
10. Is there a cost to use UK Business Loans and are you a lender or regulated adviser?
UK Business Loans is not a lender or regulated financial adviser — we act as a free, no-obligation introducer that matches your enquiry with suitable UK lenders and brokers.