Equipment finance for hospitality businesses lets NZ café, restaurant, and bar owners fund ovens, fridges, coffee machines, and full kitchen fit-outs without tying up the cash flow their business needs to actually operate. Given how capital-intensive a commercial kitchen is to set up — and how thin margins can run in the early months — spreading the cost is often the difference between opening on schedule and delaying for months while saving up.
This guide covers what can be financed, how to think about lease vs buy for different equipment types, and what new operators specifically need to know.
What hospitality equipment can be financed
Most equipment that goes into a commercial kitchen or hospitality fit-out can be financed, either individually or as part of a broader facility. Common categories fundr sees include:
- Cooking equipment — ovens, combi-steamers, fryers, grills, and cooktops
- Refrigeration — commercial fridges, freezers, and cool rooms
- Coffee equipment — espresso machines and grinders, often the single highest-value piece of equipment in a café
- Dishwashing and cleaning — commercial dishwashers and glasswashers
- Extraction and ventilation — kitchen exhaust and extraction systems
- POS and payment systems — point-of-sale hardware and EFTPOS terminals
- Furniture and fit-out — seating, joinery, bar fit-outs, and signage
Why finance instead of paying cash
A full commercial kitchen fit-out can easily run into six figures once cooking equipment, refrigeration, extraction, and joinery are all accounted for. Paying cash upfront — even where the funds are available — ties up working capital that a hospitality business genuinely needs for its first months of trading: stock, staff wages, marketing, and the inevitable slower-than-expected opening period.
Financing spreads that cost over the equipment's useful life, preserving cash for the operational reality of running a hospitality business — which tends to have tighter, more seasonal margins than many other industries.
GST and Investment Boost considerations. GST-registered hospitality businesses can generally claim GST on new equipment depending on the finance structure used, and new asset purchases may also qualify for the IRD Investment Boost deduction. Always confirm the specific treatment with your accountant before finalising a purchase.
Lease vs buy — matching structure to equipment life
Not all hospitality equipment has the same useful life, and matching the finance structure to how long you'll actually use the asset avoids paying for equipment long after it's been replaced.
| Equipment type | Typical useful life | Better-suited structure |
|---|---|---|
| Coffee machines & grinders | 3–5 years (heavy wear, frequent upgrades) | Finance lease — lower payments, easy to upgrade |
| Ovens & cooking equipment | 7–10+ years | Chattel mortgage — own it outright, long working life |
| Refrigeration | 7–10 years | Chattel mortgage — long useful life supports ownership |
| POS & payment hardware | 3–4 years (tech dates quickly) | Finance lease or operating lease — easy refresh cycle |
| Furniture & joinery | 7+ years | Chattel mortgage or business loan |
Finance lease — best for fast-cycling equipment
The lender owns the asset; you make payments for the term, often lower than an equivalent chattel mortgage. Well suited to coffee machines and POS technology that hospitality operators tend to upgrade every few years — you're not stuck owning outdated equipment, and GST is claimed progressively across payments rather than upfront.
Chattel mortgage — best for long-life equipment
You own the equipment from day one while the lender holds security over it. Suits ovens, refrigeration, and joinery — assets you'll run for the better part of a decade. GST-registered businesses can generally claim the GST component upfront, and Investment Boost may apply to new assets.
How a café might structure a fit-out
A new café financing a $25,000 espresso machine, $40,000 of cooking and refrigeration equipment, and $15,000 of furniture and joinery might use a finance lease for the coffee machine — planning to upgrade in 4 years — and a chattel mortgage for the cooking equipment and furniture, which will likely run the full 7–8 year term.
The result: lower monthly payments on the equipment that will be replaced soonest, and ownership building from day one on the equipment that will last.
Financing a full café or restaurant fit-out
Beyond individual equipment pieces, fundr regularly finances complete hospitality fit-outs — combining kitchen equipment, joinery, furniture, signage, and installation costs into a single facility, or structured across a couple of finance types where that's more cost-effective. This is particularly relevant for new venues opening from scratch, where equipment, fit-out, and installation costs all land at once.
Structuring a full fit-out well requires more upfront work than a single-item finance application — lenders typically want quotes, a lease agreement for the premises, and a clear breakdown of what's being financed. A broker can manage this process and present it in the strongest position to lenders who specialise in hospitality.
Finance for new hospitality operators
Hospitality is one of the more challenging sectors for finance approval, simply because lenders are aware of the industry's higher failure rate in the first two years of trading. That doesn't mean finance isn't available for new cafés and restaurants — it means the lender selection matters more than in lower-risk industries.
- A deposit is often expected. New hospitality ventures may need to contribute 10–20% toward equipment costs, reducing the lender's exposure.
- A personal guarantee is common. Directors are frequently asked to personally guarantee finance for a new hospitality business, particularly where the business itself has no trading history.
- Experience matters. A first-time operator with no industry background is viewed differently to an experienced hospitality operator opening a second or third venue — even where both businesses are equally new.
- A solid lease and business plan help. Lenders assessing new hospitality finance often want to see the premises lease terms and a basic view of the business plan, not just the equipment quote.
fundr works with specialist non-bank lenders who understand the hospitality sector specifically — rather than applying generic small business lending criteria to what is, in reality, a distinct industry with its own risk profile and its own experienced lenders.
How the fundr process works
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01
Tell Nick what you're setting up
Whether it's a single coffee machine or a full fit-out, share your equipment list or quotes and your business situation. No credit impact, no obligation.
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02
Structure recommended by asset, not guesswork
Nick recommends the right mix of finance lease and chattel mortgage based on each asset's likely useful life and your cash flow — not a one-size-fits-all approach.
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03
Matched to a hospitality-experienced lender
Your application goes to a lender on fundr's panel who actively works with hospitality businesses and understands the sector's specific risk profile.
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04
Fast decision, equipment ordered
Most applications receive a decision within 24 hours. Once approved, funds are released quickly so your fit-out timeline stays on track.
Setting up or upgrading a hospitality kitchen?
Tell Nick what you're financing — equipment, fit-out, or both — and he'll structure a plan that fits your cash flow and matches lenders who actually understand hospitality. No cost, no obligation, no credit impact.
Common questions about hospitality equipment finance
Talk to Nick.
Opening a café, restaurant, or bar — or upgrading your kitchen? Get a straight, no-pressure read on how to structure your equipment finance. No forms. No credit impact. Most decisions within 24 hours.