Catering Equipment Finance: The recipe for your success

An 8-burner commercial oven can top £5,000. Even a countertop coffee machine could be more than £3,000.

There are few businesses that can afford that level of investment themselves. You need access to high levels of finance - especially if yours is a new venture.

Asset Finance solutions

Fortunately, finance solutions exist which can make the equipment you need affordable. The most cost-effective of these can be Asset Finance arrangements. With these, the equipment you need, the asset, is used as the security for the loan itself. This means that if you were unable to repay, the lender would simply repossess the asset.

This has three important benefits:

• It makes it easier for the lender to agree a loan, because it reduces the risk that they will lose money.
• It reduces the risk to you, because none of your other personal or business assets are at risk.
• It can reduce the cost of the finance.

A choice of Asset Funding

Asset funding covers both Hire Purchase and Lease arrangements.

Hire Purchase

Hire Purchase lets you spread the cost of buying the equipment you will use for the long term. Arrangements generally last between 12 and 72 months and need you to pay a deposit plus fixed monthly instalments for the agreed term, after which the assets become yours.

Equipment vendors may offer Hire Purchase arrangements to support their sales. At Rangewell, we have found that arranging your own finance can be more cost-effective.

Finance and Operating Leases

With Leases you can spread the cost of equipment across its entire economic life. Finance Leases are the choice for most catering equipment, with maintenance, repairs, running costs, administration, and registration usually your responsibility. With Finance Leases, at the end of the agreement, the asset may become yours.

Operating Leases also exist and work like a rental agreement. You pay a monthly rental charge to use the asset, while its maintenance remains the owner’s responsibility. This type of finance could be the best option for equipment which will have a limited life.

New and used assets

Pre-owned equipment can mean major savings compared with new equipment. It is possible to arrange various types of Asset Finance for used equipment, allowing you save twice - with both a reduced purchase price, and secondly by spreading the cost of finance.

Making existing payments easier

If you are having difficulty making payments on an existing asset finance arrangement, or simply want to redirect cash elsewhere in your business, you may be able to refinance it. A lender will pay off what you owe under your original agreement and set up a new finance arrangement.

This can mean reduced repayments, spread out over a longer term, or provide you with a cash lump sum as well as a new finance agreement for your asset.

Why you need Rangewell for Asset Finance

At Rangewell, we work across the entire catering industry. We help businesses from chip shops and fast food providers to Michelin-starred restaurants find the funding they need.

Our expertise works for you. We know the business challenges as a well as the financial challenges you face. We also know the lenders who specialise in the sector and who can offer the most competitive rates for all types of asset finance solutions.

We put this knowledge to work for you, finding the most competitive deals for the equipment you need.

Our expertise means we can often help you find lenders who can undercut the finance deals offered by equipment suppliers - even when they offer 0% finance arrangements - call us to see how.

Call us to cut the cost of equipping your catering business

Coming to Rangewell means getting a team of finance experts working to help you find you the most competitive funding for all your catering equipment needs.

That means cutting the cost of building and running your business, and paying less for everything from ovens and refrigeration to the tables and chairs in your dining rooms.

Our service is personal. We can discuss your business and your ambitions, and help find answers scaled to fit your turnover and your market. Simply call us to discuss your equipment needs.