By the Loan Phone team Reviewed by Anthony Moncada, M.App.Fin, Cert IV Finance & Mortgage Broking
Restaurant equipment finance provides Australian hospitality businesses with funding options for kitchen appliances, dining furniture, and other essential assets. Rates typically range from 7.5-15% p.a. (indicative, fixed rates; varies by profile and as at June 2026), with loan amounts from $10,000 to $500,000+ and terms of 2-5 years depending on equipment type and business profile.
Modern platforms can provide fast online comparison, with settlements often possible within an estimated 7-14 business days for straightforward applications, though actual approval and settlement times vary by documentation, asset availability, and lender. Most lenders require ABN registration, a minimum of 6 months trading history, and reasonable business financials, though specialist lenders may consider newer establishments. Potential tax benefits include depreciation deductions and GST credits on financed equipment (subject to individual circumstances and confirmed with a tax adviser). Some suppliers may offer vendor financing, occasionally including BNPL-style arrangements with 0% interest for 6-24 months, potentially with minimum spends (~$500). However, the availability of such offers varies widely by supplier and may not be offered in all hospitality channels. These arrangements often differ significantly from traditional equipment finance in terms of fees, terms, and suitability for larger capital expenditure.
Rates indicative as of June 2026; these are examples only and subject to change. Obtain personalized quotes.
The rates below are indicative for secured business loans and do not account for individual business credit profiles, asset types, loan terms, fees, residuals, or whether rates are fixed or variable. They are for illustrative purposes only. Always confirm current rates and terms directly with lenders or brokers.
| Lender | Indicative Rates (p.a.) |
|---|---|
| Moneytech | 7.99-9.56% |
| Group And General | 8.29-10.89% |
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Types of Restaurant Equipment Finance Available
- Chattel Mortgage: The most popular option. You take immediate ownership of the equipment, and the lender takes a mortgage over it as security. This allows you to claim depreciation and other tax benefits from day one.
- Finance Lease: The lender owns the equipment and leases it to you for a fixed term. At the end of the lease, you have the flexibility to purchase the equipment at residual value, return it, or extend the lease. This is ideal for equipment with a high rate of technological change.
- Hire Purchase: Ownership transfers to your business after the final payment is made. This structure offers a clear path to ownership with fixed repayments.
- Unsecured Business Loan: These provide working capital for various business needs, including equipment, without requiring the asset as security. Rates are typically higher, and terms shorter, but they offer flexibility.
- Supplier/Vendor Finance: Offered directly by equipment suppliers, these can include deferred payment terms, rental agreements, or BNPL-style options. While convenient, terms and costs can vary widely, and they may not offer the same tax benefits or financial structuring as dedicated equipment finance. It’s crucial to compare these options carefully with traditional finance products.
Understanding Tax Implications for Equipment Finance (Australia)
Navigating the tax landscape for equipment finance can provide significant benefits for your restaurant. Here’s what Australian businesses need to know:
- Instant Asset Write-Off:
- For assets first used or installed ready for use between 1 July 2025 and 30 June 2026, eligible small businesses can immediately deduct assets costing less than $20,000 under the instant asset write-off. This threshold is assessed on the GST-exclusive cost for GST-registered businesses.
- The Australian Government announced on 12 May 2026 its intention for a permanent $20,000 instant asset write-off threshold from 1 July 2026. However, this measure is not yet legislated and remains subject to parliamentary approval. Businesses should consult the ATO website for the latest updates.
- Caution: Eligibility for the instant asset write-off depends on your business using simplified depreciation rules and meeting the aggregated turnover threshold.
- GST Credits:
- GST-registered businesses may be able to claim GST credits on the financed equipment, in line with usual BAS rules.
- General Disclaimer:
- Depreciation deductions, GST credits, and other tax outcomes depend on your business structure, GST registration status, asset use, and accounting treatment. It is essential to consult with a qualified tax adviser or accountant to understand your specific obligations and entitlements.
Restaurant Equipment Eligibility Requirements
While criteria vary, most lenders will look for:
- Active ABN: Your restaurant must be a registered Australian business.
- Trading History: A minimum of 6 months of trading is often required, though some specialist lenders can assist startups.
- Business Bank Account: An account in the same name as the ABN.
- Equipment Use: The asset must be for 100% business use within the restaurant.
- Compliance: You may need to provide food handling permits or other relevant licenses.
Restaurant Equipment Finance Application Process
- Identify Equipment & Get Quotes: Finalize the equipment you need and obtain detailed quotes from suppliers.
- Research Finance Options: Use a comparison platform to evaluate different lenders and structures.
- Complete Application: Submit an online application with your business details, financials, and equipment quotes.
- Lender Assessment: The lender will review your application, a process that typically takes 3-7 business days.
- Approval & Settlement: Once approved, sign the final documents, and the lender will pay the supplier directly so you can arrange delivery.
Common Equipment Financed
- Kitchen Equipment: Commercial ovens, stoves, fryers, refrigeration units, dishwashers, and extraction systems.
- Dining Area Equipment: Tables, chairs, booths, and point-of-sale (POS) systems.
- Bar Equipment: Beverage dispensers, glasswashers, and under-bar refrigeration.
- Food Preparation Equipment: Commercial mixers, slicers, and food processors.
Choosing the Right Finance Option
The best structure for your restaurant depends on your goals:
- For new restaurants: You might need a lender with flexible documentation requirements.
- For managing cash flow: Consider a lease with lower monthly payments to preserve working capital.
- For long-term assets: A chattel mortgage is often best for equipment you plan to use for many years, like ovens or cold storage.
Frequently Asked Questions
What restaurant equipment can be financed? Almost any asset used in a hospitality business can be financed, including kitchen appliances, dining furniture, POS systems, bar equipment, coffee machines, commercial dishwashers, and ventilation systems.
How much deposit is required for restaurant equipment finance? Deposits typically range from 0-20%. Established restaurants with strong financials may qualify for no-deposit finance, while newer establishments might be asked to provide a 10-20% deposit, especially for used equipment.
Can I finance restaurant equipment if I have a bad credit history? Yes, it’s often possible through specialist lenders. Because the loan is secured by the equipment itself, lenders focus more on your business’s cash flow and viability than just your credit score. You should, however, expect to pay a higher interest rate.
Speak with Specialists
Ready to explore finance options for your restaurant or cafe?
Email: loans@loanphone.com.au
Website: www.loanphone.com.au
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