Specialist asset finance for hospitality equipment

Is asset finance easy to get and who qualifies

Is it easy to get asset finance? Relative to a mortgage, yes, because the finance is secured on the equipment itself, so the lender has a tangible asset to recover if things go wrong and does not need a charge over the property. That makes it quicker to arrange and more accessible, including to newer businesses and to those without spare property equity. The lender assesses the equipment, its resale value and working life, and the trade of the business, its accounts and cashflow, and on smaller facilities the decision can be quick. Established hospitality operators with steady trade qualify readily; a younger business is assessed more on the operator's experience, the plan and often a personal guarantee, and may put down a larger initial payment. The type of equipment matters too, because standard, resaleable kit such as commercial kitchen equipment or vehicles is easier to fund than bespoke fit-out with little second-hand value. We package the equipment schedule and the trade so the case is clear, and we place it with a lender that understands hospitality assets rather than a generic desk. The terms are indicative and subject to credit approval.

How much you can fund and refinancing existing assets

Asset finance can fund most of the cost of qualifying equipment, from a single item to a full kitchen or a whole property's FF&E, with facilities running from a few thousand pounds to several hundred thousand and higher on strong trade and standard, resaleable assets. The amount is driven by the value and the working life of the equipment and the strength of the business, and the term is matched to that working life so the asset is paid for over the years it earns, typically one to seven. Some structures take an initial payment or a larger deposit, while others fund the full cost, and hire purchase and leases treat that differently. Asset refinancing works the other way round: it raises cash against equipment the business already owns, through a sale and leaseback, releasing capital that can fund working capital or the next project while the business keeps using the kit. That is a useful way for an established operator to unlock value tied up in equipment without disturbing the property mortgage. We model the facility, the term and any deposit against the equipment and the trade. All bands are illustrative, vary by lender and asset, are subject to credit approval, and are not an offer.

The cost of asset finance against its benefits

Asset finance is priced on the equipment and the trade, with a fixed or variable rate over the term and an arrangement fee on many facilities, and the rate varies by lender, the type of asset and the strength of the business. Because the finance is secured on the equipment, it is often keener than an unsecured business loan for the same purpose, and spreading the cost preserves the cash that buying the equipment outright would consume, which is the main benefit: the business keeps its working capital for the trade and pays for the kit as it earns. Leasing and hire purchase also have different accounting and tax treatments, which can affect the real cost, and those are matters for the business's accountant. The headline monthly figure is not the whole story: the term, any deposit, the end-of-term position and whether the business keeps or returns the asset all shape the total cost, so hire purchase on kit worth keeping and a lease on kit that dates can each be the cheaper route depending on the asset. We compare the structures and the total cost, disclose our broker fee in writing, and never claim an exclusive tie to any lender. The figures are indicative and not an offer of finance.

The types of asset finance and which fits

Is asset finance better than a loan? For equipment, usually, because it is secured on the asset itself rather than the general trade, which tends to make it keener and easier to arrange than an unsecured business loan, and it does not tie up property security the way a mortgage top-up would. Within asset finance, the choice of type follows the equipment. Hire purchase suits kit the business wants to own and keep, such as a kitchen fit-out or refrigeration, because ownership transfers at the end. A finance lease suits equipment where the business wants the use and the risks and rewards of ownership without necessarily taking title. An operating lease or contract hire suits assets that date or wear and are best handed back, such as vehicles, IT and EPOS. Asset refinancing suits an established business that wants to release cash from equipment it already owns. Where the need is property rather than equipment, a commercial mortgage or bridging is the right route; where it is general working capital, a business loan may fit better. We match the structure to the asset and the aim so the equipment is funded the most efficient way.