Can I finance kitchen equipment like ovens, refrigeration, extraction and dishwashers?

The short answer and what you can usually finance

Yes — most UK businesses can finance commercial kitchen equipment such as ovens, refrigeration units, extraction systems and dishwashers. This is typically done via asset finance solutions like Hire Purchase or Finance Lease. The goal is to spread the cost over time while keeping cash flow stable.

Qualifying items often include combi ovens, range cookers, fryers, grills, walk-in fridges and freezers, undercounter refrigeration, cold rooms, extraction canopies and ducting, fans, make-up air systems, pass-through dishwashers, glasswashers and pot-wash equipment. Many lenders will also consider fabrication benches, stainless counters, servery units and smaller appliances when they are part of a cohesive kitchen project.

Finance is most accessible to established UK businesses in sectors like restaurants, cafes, pubs, hotels, dark kitchens, caterers, school or healthcare catering, bakeries and food production. Lenders will assess the asset type, the supplier, the installation plan and your business profile to shape terms and pricing.

What counts as “hard” vs “soft” kitchen assets?

“Hard” assets tend to have strong resale value, for example premium ovens or branded refrigeration. “Soft” assets include items with lower secondary value such as extraction ducting, counters or installation costs. Many funders will finance mixed baskets that include both.

Extraction systems can be treated in different ways depending on how integral they are to the premises. Some lenders may prefer extraction within a broader fit-out facility.

If your project spans both equipment and building works, a blended “fit-out finance” approach can sometimes be better than purely equipment finance.

New or used equipment — what’s acceptable?

Both new and refurbished items can be financeable if sourced from reputable suppliers. Lenders often prefer supplier invoices rather than private sales because of provenance and warranty.

Used assets may attract shorter terms or slightly higher pricing due to reduced lifespan. Serial numbers, age, condition and brand support help lenders determine feasibility.

Where possible, include any service history or refurbishment reports to support your application.

Who owns the equipment during the term?

With Hire Purchase, you usually take ownership at the end after paying an option-to-purchase fee. With a Finance Lease, you rent the equipment for the term and can often continue renting, return the asset, or discuss a secondary period.

Asset refinance is also possible, where you raise capital against kit you already own. This can help release cash tied up in your kitchen equipment.

Ownership and accounting treatment can differ by product, so speak with your accountant before deciding.

Finance options for ovens, refrigeration, extraction and washers

Several finance structures are commonly used for commercial kitchens. The right choice depends on your cash flow, VAT considerations and whether you want to own the asset. Below are the core types and how they compare at a high level.

Hire Purchase (HP) is popular when you want eventual ownership. Finance Lease is flexible when you prefer to rent the kit and keep payments fully deductible as an expense.

Operating Lease may suit larger projects with defined replacement cycles. Asset refinance can unlock equity in existing equipment to fund upgrades.

Hire Purchase (HP)

Ownership typically transfers at the end for a small fee. VAT on the equipment is usually due upfront, but some providers offer VAT deferral to help cash flow.

HP terms often range from 12 to 60 months, depending on asset life. This can suit high-value ovens, refrigeration and dishwashers with long useful life.

Payments can be fixed, making budgeting predictable across the term.

Finance Lease

You rent the asset for an agreed period, with rentals usually plus VAT each month. At term end, options may include returning the asset or entering a secondary rental period.

Leases can include mixed baskets of equipment and some soft costs, subject to lender policy. This can be useful for projects that include extraction and installation.

Lease rentals are typically deductible for corporation tax purposes, but always confirm with your accountant.

Operating Lease and short-life solutions

Operating Leases may suit equipment with faster replacement cycles. The funder may take on more residual value risk, so rentals can be lower.

Shorter terms are common, helping you upgrade equipment more frequently. This can be useful in high-throughput kitchens.

Availability depends on asset type, supplier and your business profile.

Asset refinance and top-ups

If you already own kitchen kit outright, refinance can free up working capital. The lender secures the facility on the equipment and you repay over time.

Some lenders allow top-ups against equipment with existing finance, subject to equity and status. This can help when expanding a kitchen without a large cash outlay.

Refinance is often quicker if asset details and valuations are clear from the start.

Unsecured loans as an alternative

Some businesses choose an unsecured business loan instead of asset finance. This can be useful if your equipment basket is very mixed or heavily “soft cost”.

Unsecured loans rely more on overall business strength than asset value. Terms and pricing may differ versus secured asset finance.

You can use a loan alongside asset finance to complete a project funding stack.

Eligibility, documentation and how providers assess risk

Lenders and brokers typically look for established UK businesses with a trading track record. A common benchmark is 12 months of trading and evidence of affordability. Stronger profiles may access better terms and faster decisions.

Best Business Loans helps you connect with providers that are actively lending in your sector. We do not lend directly, and we do not guarantee acceptance or rates.

Every application is subject to eligibility, status and the funder’s underwriting criteria.

What lenders usually ask for

• Latest year-end accounts and recent management figures
• Recent business bank statements (typically 3–6 months)
• Supplier quotation or pro forma invoice with itemised equipment
• Details on installation, commissioning and compliance (e.g., Gas Safe, F-Gas)
• Company and director information, including ID and address verification

Some lenders may request asset details like brand, model, serial numbers and age. New equipment generally needs a supplier invoice and delivery confirmation.

If extraction is included, the scope of works may be reviewed due to installation complexity.

Typical acceptance factors

• Affordability based on cash flow and bank conduct
• Trading history, turnover and profit trajectory
• Credit behaviour and any existing borrowing
• Asset quality, resale value and supplier standing
• Personal guarantees for limited companies, where appropriate

Approval is never guaranteed, and rates vary by risk profile. Terms usually align with the expected life of the assets.

Where a business is seasonal, lenders may consider tailored payment profiles.

New vs. refurbished vs. private purchase

New equipment from approved suppliers is generally simplest to fund. Refurbished items can be acceptable with provenance and warranty.

Private purchases are tougher due to limited protection and verification. If you must buy privately, expect tighter terms or a request to finance through a dealer invoice.

Including professional installation and commissioning in the supplier quote can make a case stronger.

Costs, cash flow structuring and how Best Business Loans helps

The cost of finance depends on your profile, asset mix, term length and the provider’s appetite. Ovens and refrigeration often qualify for longer terms than smaller appliances. Extraction and fit-out-heavy components may reduce maximum terms.

Many providers can accommodate seasonal payments, deposits or initial deferrals. VAT handling differs by product, so align choices with your cash flow plan.

Always discuss the tax treatment with your accountant before entering an agreement.

Ways to keep payments manageable

• Choose a term that matches asset life (e.g., 36–60 months for core appliances)
• Consider VAT deferral on HP if offered
• Use seasonal or stepped profiles for hospitality peaks and troughs
• Blend asset finance with an unsecured loan for soft costs if needed
• Refinance existing kit to release equity for upgrades

A clear supplier quote with all equipment and soft costs itemised is helpful. Include delivery, installation, commissioning and compliance where applicable.

This reduces back-and-forth and can speed up decision-making.

The typical process and timelines

1. Complete a Quick Quote with your business details and funding need.
2. Receive indicative guidance and potential provider matches.
3. Share supporting documents and supplier quotes for underwriting.
4. Review offers, terms and any conditions or guarantees required.
5. Sign documents electronically and arrange supplier payment.

Straightforward cases can move quickly once documents are provided. Complex fit-outs or mixed-asset baskets can take longer due to scoping. Delivery and installation are coordinated between you, the supplier and the funder.

Best Business Loans introduces you to suitable lenders or brokers so you can compare options. There is no obligation to proceed, and you stay in control throughout.

Important information: fair, clear and not misleading

Best Business Loans is an independent introducer and does not provide loans directly. We do not offer financial advice, and nothing on this page is a recommendation.

Any finance is subject to status, affordability, eligibility and the chosen provider’s terms. Fees, rates and terms are set by the provider and may change.

Please ensure all promotions and decisions are fair, clear and not misleading for your own customers.

Where to get sector-specific support

If you operate in hospitality, catering or food production, specialised funders can help. Some providers understand the nuances of extraction, cold rooms and compliance costs.

For more sector insights, see our guide to food industry loans. It covers finance considerations across restaurants, bakeries, and food manufacturers.

Specialist knowledge can make a difference to speed and suitability.

FAQs, compliance notes and key takeaways

Can I include installation, delivery and commissioning in the finance?

Often yes, especially within Finance Lease or broader fit-out finance. Lenders may cap soft costs as a percentage of the overall project. Ask for a supplier quote that itemises these costs from the outset.

Are dishwashers and glasswashers easy to finance?

Yes, these are common hospitality assets and are frequently funded. Terms may be shorter than for large ovens or cold rooms due to lifespan. Warranty and brand support are helpful for underwriting.

What about extraction canopies and ducting?

Extraction can be funded, though treatment varies by lender. Some prefer it within a fit-out facility because it may be considered part of the premises. Provide a detailed scope and compliance documentation to support the application.

Do I need a personal guarantee?

Many limited companies are asked for a director’s guarantee. The requirement depends on the lender, deal size and risk profile. Guarantees can improve access to funding and pricing in some cases.

How fast can I get a decision?

Indicative decisions can be quick once core documents are supplied. Simple HP or lease cases may progress within days. Complex projects take longer, particularly where site works are involved.

Can start-ups apply?

Best Business Loans currently supports established SMEs rather than start-ups. Many asset finance providers also prefer at least 12 months’ trading. If you are pre-trading, explore supplier payment plans or alternative routes with specialist advisers.

How does VAT work on equipment finance?

On HP, VAT on the full asset value is typically payable upfront and may be reclaimable, subject to your VAT status. Some lenders offer VAT deferral to ease cash flow. Leases usually charge VAT on each rental; check with your accountant for tax treatment.

How Best Business Loans fits in

We connect you with relevant lenders or brokers who understand your sector. You can compare options and choose the path that fits your cash flow and goals. It is free to submit an enquiry, and there is no obligation.

Next steps

Prepare your supplier quotes, business bank statements and recent management accounts. Complete a Quick Quote to check indicative eligibility and potential routes. Review offers carefully and seek independent professional advice where needed.

Key takeaways

• Yes — commercial ovens, refrigeration, extraction and dishwashers are commonly financeable.
• Hire Purchase and Finance Lease are the most used structures for kitchen projects.
• Eligibility depends on trading history, affordability and asset quality.
• Installation and soft costs can often be included within limits.
• Best Business Loans introduces you to suitable UK providers so you can compare options.

Ready to explore your options? Complete a Quick Quote for an initial eligibility view, then compare offers from matched providers. Make a confident, informed choice that supports your kitchen’s performance and cash flow.