Guide to Asset Finance for Restaurant Fitouts

Bringing Your Restaurant Vision to Life

Starting or renovating a restaurant is an exciting venture, but the costs involved in a proper fitout can be substantial. From commercial kitchen equipment to dining furniture, refrigeration systems to point-of-sale technology, the expenses add up quickly. For Queensland restaurant owners, understanding your finance options can make the difference between opening your doors on schedule or facing delays due to capital constraints.

Asset finance offers a practical solution for funding your restaurant fitout without depleting your working capital. Whether you're opening a new venue in Brisbane's dining precincts, the Gold Coast, or regional Queensland, the right financing structure can help you acquire the latest equipment while maintaining the cashflow needed for day-to-day operations.

Understanding Asset Finance for Hospitality Equipment

Asset finance is a funding method where the equipment or assets you're purchasing serve as collateral for the loan. This approach is particularly well-suited for hospitality equipment finance, as the items you're buying - commercial ovens, refrigerators, coffee machines, and furniture - hold tangible value.

Several finance options are available for restaurant fitouts:

• Chattel Mortgage: You own the equipment from day one, with fixed monthly repayments over the loan term. This option provides significant tax benefits, as you can claim depreciation and interest as tax deductions.
• Finance Lease: The financier owns the equipment during the life of the lease, and you have options at the end of the term. This structure offers flexibility with GST treatment.
• Hire Purchase: Similar to a chattel mortgage, but ownership transfers after the final payment. This option works well for businesses wanting to spread costs over time.
• Operating Lease: Ideal if you prefer to upgrade equipment regularly, matching your upgrade cycle to changing technology and customer expectations.

The Benefits of Financing Your Restaurant Fitout

When you're establishing or refurbishing a restaurant, preserving working capital becomes critical. You'll need funds for initial stock, staff wages, marketing, and the inevitable unexpected costs that arise during opening.

Financing your fitout through asset finance allows you to:

1. Preserve Capital: Keep your cash reserves available for operational expenses and opportunities that arise
2. Manage Cashflow: Spread the cost of buying new equipment over its useful life with predictable payments
3. Access Tax Benefits: Depending on your structure, you may be able to claim depreciation, interest, and lease payments
4. Acquire Latest Equipment: Obtain modern, efficient equipment that might otherwise be out of reach
5. Support Business Growth: Scale your operations without waiting to accumulate sufficient capital

What Equipment Can You Finance?

For restaurant fitouts, almost any commercial equipment can be financed. The loan amount will depend on your business needs and borrowing capacity, but typical items include:

Kitchen Equipment:

• Commercial ovens, ranges, and cooktops
• Refrigeration units and cool rooms
• Dishwashers and glasswashers
• Food preparation equipment
• Extraction systems and ventilation

Front-of-House Items:

• Tables, chairs, and booth seating
• Bar equipment and glassware storage
• Point-of-sale systems and technology equipment
• Audio-visual systems
• Lighting fixtures

Supporting Assets:

• Office equipment for administrative areas
• Work vehicles for catering or delivery services
• Specialised machinery for unique food preparation

Structuring Your Restaurant Equipment Finance

When considering commercial equipment finance, you'll need to think about several factors:

Interest Rate: Rates vary based on the lender, your business profile, and the equipment being financed. Premium Finance Group Australia can access asset finance options from banks and lenders across Australia to find competitive rates for your situation.

Loan Term: Equipment financing typically ranges from 12 to 60 months. The term should align with the equipment's expected useful life and your business's cashflow projections.

Balloon Payment: Some structures allow you to reduce fixed monthly repayments by including a balloon payment at the end of the term. This can be useful for managing cashflow during your establishment phase.

Deposit Requirements: Depending on your circumstances, you may need to contribute a deposit, though many options exist with minimal upfront costs.

Medical, Commercial, and Hospitality Equipment Finance

While this article focuses on hospitality equipment finance, it's worth noting that similar principles apply across industries. Whether you need medical equipment finance, commercial vehicle finance, construction equipment finance, or technology equipment finance, the fundamentals of asset based lending remain consistent.

For restaurant owners who might also operate catering services, commercial vehicle finance for trucks, trailers, or refrigerated vans can be structured alongside your fitout finance. Some businesses even combine multiple asset types into a single facility.

Vendor Finance and Dealer Finance Options

When sourcing equipment for your restaurant, you may encounter vendor finance or dealer finance offers. While these can be convenient, it's worth comparing them against what a finance broker can arrange. Premium Finance Group Australia works with multiple lenders, providing access to a broader range of products and potentially more favourable terms than going directly through an equipment supplier.

For businesses with multiple vehicles or planning fleet operations, fleet finance solutions can also be incorporated into your overall funding strategy.

The Application Process

Securing asset finance for your restaurant fitout involves several steps:

1. Assessment: Determine what equipment you need and obtain quotes
2. Structure Selection: Choose the finance structure that suits your business needs
3. Documentation: Provide financial information and business details
4. Approval: The lender assesses your application
5. Settlement: Once approved, funds are released, and you can proceed with your fitout

As a Queensland-based business, working with a local finance broker who understands the regional hospitality market can provide valuable insights and support throughout the process.

Making the Right Choice for Your Business

Selecting the right finance structure for your restaurant fitout depends on multiple factors: your business structure, tax position, cashflow projections, and long-term plans. Some operators prefer ownership models like chattel mortgages, while others value the flexibility of operating leases.

The hospitality industry has unique considerations - equipment can become outdated, customer preferences change, and venues may require regular refreshes. Your financing should accommodate these realities while supporting your immediate needs.

For businesses also looking at broader commercial loans or business loans for property or working capital, coordinating your equipment finance within your overall funding strategy ensures optimal outcomes.

Taking the Next Step

Funding your restaurant fitout through equipment leasing or purchase finance allows you to move forward with your vision without compromising your working capital. Whether you're upgrading existing equipment or starting fresh, the right finance structure can position your business for success.

At Premium Finance Group Australia, our team understands the unique challenges Queensland hospitality businesses face. We can help you access asset finance options from banks and lenders across Australia, finding solutions tailored to your circumstances.

Ready to discuss financing options for your restaurant fitout? Call one of our team or book an appointment at a time that works for you. Let's turn your hospitality vision into reality.