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Growing your business with Catering Equipment Finance

Published on 2nd October 2018 - Last update on 31st March 2020

Although sharing your love of great tasting food with your customers can be very exciting, running a business in the catering industry doesn’t come without its fair share of unique challenges. As well as hiring trained kitchen staff, employing front of house staff, running your kitchen to the highest standard and emphasizing your core values, no commercial kitchen would be complete without the necessary equipment to make it work. Whether you need slow cookers for creating that perfect roast, storage units, blenders, kitchen utensils or bespoke ovens built to your exact specifications, making sure that your commercial kitchen is fully equipped is crucial. The only obstacle often standing in the way of entrepreneurs like yourself is cost, which is where applying for Catering Equipment Finance could help.

Why should I apply for Catering Equipment Finance?

In order to run and maintain a successful business in the catering industry, you need to keep a watchful eye on every aspect of your venture. As well as managing the cost of supplies, paying utility bills and delivering great customer service, you also need high-quality catering equipment which enables you to create dishes to ensure repeat custom time and again. However, commercial catering equipment can be expensive, especially if you’re ordering in bulk. But rather than deplete your personal savings or redirect funds from other areas of your business, there is another option to consider. Catering Equipment Finance allows you to spread out the cost of vital equipment so you can achieve your goals without having to force your business into a precarious financial situation.

Are looking to acquire or replacing ageing catering equipment? Having second thoughts over the costs involved? Apply for Catering Equipment Finance or learn more about how your catering establishment could benefit.

What Catering Equipment Finance solutions are available?

If you need access to high-quality catering equipment but lack the necessary capital, or are looking for another means of acquisition, applying for Catering Equipment Finance could be the answer. As well as supporting purchases, you can also rent catering equipment for an agreed period or release equity in your unencumbered assets to generate a lump sum.

What makes Catering Equipment Finance such an invaluable tool for your business is that it offers you access to a variety of business finance solutions, including Hire Purchase, Leasing and even Asset Refinance.

Hire Purchase

If you’re looking to acquire, and eventually gain ownership of, high-quality catering equipment which could save your business time and money in the long run, Hire Purchase could prove a key solution to consider. It works by the lender purchasing the equipment you require from a trusted supplier and granting you access to it after you’ve paid an Initial Deposit. This involves the equipment’s full VAT cost plus an agreed percentage of its total purchase price, which is usually subject to negotiation. As soon as this has been paid, you can begin using the equipment in your business whilst making Fixed Monthly Repayments over the agreed term, which could be up to 5 years, plus interest. Once the agreement has matured, with all relevant payments resolved, full ownership is then transferred to your business.

Leasing

Meanwhile, if you’re looking to try out new equipment for a limited period, if the equipment has a rapid rate of depreciation or new models are released regularly, you may want to consider leasing the equipment instead. Rather than pursuing ownership, you could borrow catering equipment for an agreed term that could last up to 5 years, whilst making Fixed Monthly Rental Payments plus interest. However, if the equipment is particularly expensive, some lenders may offer agreements for up to 7 years. And once the agreement has matured, you can either return the equipment, extend the lease or upgrade to another model.

Asset Refinance

On the other hand, if you own unencumbered assets such as equipment, machinery or vehicles that aren’t fixed into the structure of your premises, you could release up to 100% of the equity contained within them using Asset Refinance. Because the lump sum usually isn’t subject to any usage restrictions, Asset Refinance can be used to help support upfront equipment purchases or provide funds for any other aspects of your business. In addition, Asset Refinance also uses a Fixed Monthly Repayment scheme and offers terms lasting up to 5 years, plus interest.

Need help acquiring catering equipment for your commercial kitchen?

Although equipment is an essential part of any catering establishment, supporting the costs that are involved whilst managing your operations can feel like a difficult balancing act. But rather use your own savings and deprive your business of funds it may require later, there is another pathway you could explore. Catering Equipment Finance offers you access to a variety of finance solutions that can help tip the scales back in your business’ favour. The only challenge you need to overcome now is sourcing the most appropriate finance arrangement from a lender you can trust. Fortunately, that’s where our services can help. We can support you with all types of catering and hospitality finance - from finance for mobile food businesses to restaurants and cafes.

At Rangewell, we’re an Access to Finance specialist who has mapped over 400 lenders to offer small businesses an overview of more than 23,000 business finance products. Our services are completely free to use for SMEs, IFAs and accountants, plus we’ll also guide you through the application process. So if you’re looking to acquire high-quality catering equipment without risking your financial stability, apply for Catering Equipment Finance today or find out more with Rangewell.


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David Harrison

David Harrison

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