Fish and Chip Shop: Kitting out your Chippy!

If you’re looking to purchase a Fish & Chip shop you’ll no doubt appreciate how complex the process can be. There are many considerations to factor into your decision, potentially changing your direction and approach at any point. One aspect to take note of involves what essential assets you’ll require to function.

To get the ball rolling and the fish frying, you’re going to need to look at fryers, grills, cookers, fridges, freezers, storage units, a pile of kitchen utensils and so on. Understandably, before your business-to-be can even open, you’ll need to fork out a hefty sum for this essential equipment. Plus, you need to determine just how much space will be required prior to settling for a location. A major headache – or is it?

Making your finances work

You’re probably reading this and thinking just how expensive a venture like setting up your own Fish & Chip shop can be, and you’d be correct. However, before you decide to use up your own capital, there is a less drastic option that can prove highly beneficial. If you’re worried about parting with large chunks of your capital, Rangewell, an official partner of the National Federation of Fish Friers (NFFF), can offer you the perfect alternative. With our in-depth expertise and support, we could source the ideal business finance solution for your needs, including Asset Finance.

Get Asset Finance working for you

Asset Finance is an umbrella term describing a package consisting of Business Loans, Leasing Agreements and Hire Purchase solutions. As such, it can be the ideal finance package for securing all the equipment necessary for the success of your Fish & Chip shop.

Business Loans

Business loans often come Secured or Unsecured, accompanied by terms that are either short or long term. Short-term products can last from 1-3 years whereas long-term products may range from 3-6 years or more. Terms dictate exactly how long your business must commit to making monthly repayments, plus interest.

With an Unsecured business loan, you could potentially secure a lump sum in the region of £5,000 to £250,000. Although you’re not required to set aside assets as security, you could offer a personal guarantee so to gain a larger lump sum.

However, with a Secured business loan you may acquire a sum in the region of £5,000 to as much as £1,000,000. In exchange for a much larger sum, this product will require you to set aside assets as security. This will allow lenders to reclaim these assets in case your business becomes unable to complete the monthly repayment scheme.

Leasing Agreements

Leasing agreements allow your business to have usage of equipment without ownership typically for a period lasting between 1-5 years When discussing leases you need to understand the two types available

Operating: With this agreement, you have use of the asset for a portion of the asset’s projected working lifespan. Unless you set up a separate agreement with the supplier, you will be tasked with maintaining the equipment. At the end of the term, you’re free to either extend or hand back the asset subject to terms and conditions.

Finance: Again you’ll be required to commit to a monthly repayment schedule. But this time the term can cover most, if not the entire lifespan of the asset concerned. You will also be required to accept certain responsibilities regarding maintenance, repairs, registration and administration. Once the agreement has completed its primary period you are free to either return the equipment or extend the lease of the asset from the lessor into a secondary period.

Hire Purchase Solutions

If you require large, heavy and often very expensive pieces of equipment, a hire purchase solution is certain to be of great help. This solution is designed to help you acquire an asset and becomes its eventual owner by having an alternative lender purchase the asset on your behalf.

Before you can install and make use of the asset, you’ll need to provide a deposit to the lender equal to a sum in the region of 10% of the asset’s total worth. Once paid, you can then make use of the assets whilst keeping up with fixed monthly repayments to the lender, plus interest. Once the repayment scheme has been concluded you become the asset’s owner.

Our values are simple – We’re on your side

At Rangewell, our services are clear and transparent. We support a wide range of SME businesses of every shape and size, for finding every type of finance. So whether you need full finance for fish and chip shops or simply a small amount of equipment, come to Rangewell Follow us on Twitter and LinkedIn for business tips and tricks, and feel free to call us on 0203 637 2340 if you’d like to chat about what we can do for you.