Finance

Finance Your Kitchen Equipment

If you’re looking to enjoy the best catering experience, you need to get the best catering equipment. However, you’ll need to keep in mind that this will cost thousands of dollars and, in some cases, tens of thousands of dollars. If you’re looking to set up your hospitality centre or catering business, this might pose a challenge.

This is thanks to the financial inconvenience you might have to face even if you can afford to purchase the fleet of equipment that you need. In turn, you’re most likely considering giving up on that equipment purchase.

Guess what; you don’t have to give up. You can easily get access to the kitchen and catering equipment of your choice without any financial hassle. All you need to do is maximise equipment finance. Through this, you get access to the cash or equipment that you need.

We do not offer equipment finance at Gemutlich. This is because we are not authorised or licensed to do so. However, we have a wide range of partners that you can connect with to access these finance options. With them, you’ll get access to the equipment that you need. You can then commit to repaying the lender over a period and at your convenience.

Some of the loans that you can obtain through our partners include:

  • Jade Equipment Loan
  • Geared Asset Hospitality and Catering Finance
  • Silver Chef Commercial Kitchen Equipment Finance

You can contact any of them to get started on your journey of convenient purchase of your catering equipment.

Three men busy in the commercial kitchen
Why You Should Choose Equipment Finance

There is a wide range of reasons why equipment finance is your best shot at getting your catering equipment. Some of these reasons are as follows:

  • It allows you to access the equipment while still protecting your financial convenience conveniently.
  • It is cost-effective as you get access to competitive interest rates.
  • It allows you fast access to the equipment as you don’t have to save months from being able to afford it.
  • It provides your business with a competitive edge as you can access industry-leading equipment to optimise business activities.
What You Can Finance

Generally, you can finance a wide range of kitchen tools that you need. Keep in mind that these tools fall under two category and that’s the used or new machinery.

In the case of the used machinery, this refers to catering equipment that others have used. This option is usually preferred because it offers the equipment at a competitive price. However, it comes with some risks. As such, you will need to provide the equipment’s details and provide access to the equipment so the lender can assess it and confirm that it still offers value for money.

When it comes to new equipment, this option is accessed from a dealership and comes directly from the manufacturer. You’ll hardly face issues with this option. However, it is usually more expensive than the used option.

When it comes to your equipment finance, you can obtain finance for more than one equipment. You can easily obtain finance for a fleet. For instance, you can obtain equipment finance for all the equipment you need in your new kitchen.

Specific types of equipment that you can purchase include:

  • Commercial Ovens
  • Slicers
  • Exhaust Hoods
  • Vacuum Packers
  • Glass Washers and Dishwashers
  • Commercial Freezers and Fridges
  • Display and Cake Fridges
  • Bakery and Benchtop Equipment
  • Espresso Machines
  • Mixers, Mincers, and Sausage Fillers
  • Fryers, Microwave Ovens and Combi Ovens
Chef preparing food in the commercial kitchen
Available Finance Options

If you’re interested in financing any of the equipment above, there are some financing options that you can maximise. They are as follows.

Chattel Mortgage

Under this arrangement, you get a lender, usually a financing institution that offers you the cost price of the equipment you need as a loan. You can then go on to get the equipment that you intend to purchase with the loan. However, you will agree to mortgage the equipment you purchase to the lender as security for the loan during the loan arrangement.

So, once you complete the purchase, you will need to enter into a mortgage agreement with the equipment as the subject. You’ll then need to begin repayment of the borrowed sum.

All through this, you already have ownership over the equipment, and all the lender has is a lien or charge over the equipment. Once you complete the repayment, the mortgage agreement comes to an end.

Typically, this option comes with a lower interest rate and flexible terms. You also enjoy a repayment duration of up to five years.

Making salad at commercial kitchen
Woman preparing cottage cheese in commercial kitchen
Equipment Rental

Another option through which you can access the equipment that you need is equipment rental. Under this arrangement, you don’t get access to the ownership of the catering equipment. What you get access to is possession. You agree and rent the catering equipment for a period. Based on the parties’ agreement, you can extend the rental duration following the end of the first period.

You’ll need to make a specific payment for the rental agreement. However, this option comes with tax advantages. This is because you get to write off this equipment’s cost as expenses rather than as an asset that suffers depreciation.

Finance Lease

Another option you can use to finance the purchase of the catering equipment is through a finance lease. This option finds a middle ground between equipment rental and equipment finance. Under this arrangement, you get to rent the equipment you need for a period.

However, in this case, it comes with an option to purchase the equipment at the end of the period. To activate this clause, all you’ll need to do is pay a residual amount. Once you do so, you get ownership of the equipment. However, you may decide not to activate this clause.

Happy chef holding dish at commercial kitchen
Chef using digital tablet in the commercial kitchen
Equipment Finance Calculator

This tool allows you to determine your repayment obligation under a loan arrangement. All you need to do is enter the following information and click calculate. You’ll get an estimate of how much you’ll need to repay weekly, biweekly, or monthly depending on your repayment schedule.

  • The loan amount
  • The interest rate
  • The repayment schedule
  • The loan duration
  • Balloon payment option where necessary