Restaurant Equipment Finance

Compare structures for hospitality assets

• Chattel Mortgage (Equipment Loan) – You own the asset from day one. Interest and depreciation may be deductible; GST on the purchase price is generally claimable upfront if you account on a non-cash basis. Balloons allowed to reduce repayments.
• Commercial Hire Purchase – Similar cash flow to a loan with ownership passing after final payment. GST is typically claimed over time per repayments.
• Finance Lease – Lender owns the asset; you pay rentals and may have a residual per ATO guidelines. Suits assets with predictable resale.
• Operating Lease/Rental – Rentals for usage with options to return, extend or upgrade. Often used for POS/IT or mixed “soft” fitout bundles.

Equipment loan vs lease: which fits?

Rates, terms and costs

Last updated: 18 April 2026. Ranges are indicative only and vary by lender, credit profile, documentation, asset type/supplier and term. Assumptions for “Prime”: GST-registered Australian business, 2+ years trading, clean credit, property-backed director or strong balance sheet, standard security over the asset.

• New hard kitchen assets (ovens, dishwashers, refrigeration) – Prime: ~7.99%–11.49% p.a. (APR) – Near‑prime: ~11.50%–15.99% p.a. – Non‑conforming: ~16.00%–22.99% p.a.
• Used hard assets (dealer/private) – Prime: ~9.49%–13.99% p.a. – Near‑prime: ~13.50%–18.99% p.a. – Non‑conforming: ~19.00%–24.99% p.a.
• Soft assets/fitout/POS bundles – Prime: ~10.99%–15.49% p.a. – Near‑prime: ~14.99%–19.99% p.a. – Non‑conforming: ~20.00%–28.00% p.a.
• Typical terms – 24–84 months (soft assets often 24–60 months). Residuals/balloons: 0%–40% depending on asset and policy.
• Typical fees – Establishment/document fee $195–$995; PPSR $6–$9; monthly account fee $8–$20. Some lenders also charge risk‑based or brokerage fees. Early payout/break costs can apply (see “Security and fees”).

Get a rate estimate for your venue

Worked repayments (illustrative)

Assumes no fees included in amount financed; equal monthly repayments; rate fixed for term.

• $50,000 over 48 months at 10.49% p.a. (no balloon) – Approx. $1,282/month. Total repaid ~$61,536.
• $50,000 over 48 months at 10.49% p.a. with 20% balloon ($10,000) – Approx. $1,114/month. Total outlay ~$63,472 incl. balloon.

Balloon lowers monthly cost but increases total interest. Always check fees and tax treatment with your accountant.

Important accounting note (AASB 16)

Under AASB 16, most leases are recognised on the lessee’s balance sheet as a right‑of‑use asset and lease liability. Short‑term (≤12 months) and low‑value asset leases can be exempt. “Operating lease = off‑balance‑sheet” is generally no longer accurate for lessees. Lessor accounting and tax outcomes still differ by lease type and residual settings.

Always confirm financial reporting and tax implications (including GST and instant asset write‑off eligibility) with your accountant for your specific structure.

Learn more about operating leases

Eligibility: who typically qualifies?

• ABN age – 6–24 months minimum depending on doc level; startups may be considered with larger deposits, asset‑backed guarantees or strong experience.
• GST registration – Usually required if turnover ≥ $75k; some low‑doc lenders expect GST‑registered.
• Time trading – Prime: 12–24+ months; Near‑prime: 6–12 months with compensating strengths; Startups: case‑by‑case.
• Turnover – Indicative minimum $150k–$300k p.a. (lower accepted for micro‑deals).
• Credit score – Prime usually 600+; Near‑prime ~500–599; Paid defaults may be considered if aged > 24 months.
• Deposit – 0% common for strong files on new dealer‑supplied assets; 10–30% typical for used/private sale or soft fitout.

Check my eligibility

Documentation checklist

• Business bank statements – last 6–12 months (CSV or PDF)
• Financial statements – last 2 years (P&L and balance sheet)
• BAS – last 4 quarters; ATO integrated client account (on request)
• Identification – driver licence(s) for all directors; Medicare or passport if requested
• Entity documents – ACN/company extract; trust deed (if applicable); partnership agreement (if applicable)
• Asset details – supplier quote/invoice, serial numbers, age/condition; for private sales, copy of ID, proof of ownership and a valuation (often required from ~$30k–$50k+)
• Existing loan statements – last 6 months for any facilities being refinanced
• Lease/fitout schedule – where funding a venue fitout or multiple “soft” items

Upload docs and get options

Security and fees explained

• Security – PPSR registration over the funded asset is standard. Most lenders also require director guarantees. A GSA (General Security Agreement) may be requested for multi‑asset bundles or weaker files.
• Fees – Typical establishment/document fees $195–$995; monthly account fees $8–$20; PPSR registration/release fees $6–$40. Valuation/inspection fees may apply for used/private‑sale items.
• Early payout/break costs – Payout quotes may include remaining principal plus an interest adjustment (actuarial or Rule of 78) and any residual handling/administration fees. Ask for an early payout method before you sign.

Ask about fees and security on your deal

New vs used vs private sale limits

• Maximum asset age – Many lenders want hard kitchen assets to be no older than 5–7 years at application and ≤10 years at term end. Soft assets/fitout often ≤5–7 years at term end.
• LVR (amount financed) – New dealer assets up to 100% + GST/fees for prime. Used: ~70%–90%. Soft bundles: ~50%–80% depending on mix.
• Valuations – Common for private sales > ~$30k–$50k or where asset serialisation/resale is unclear.
• Condition & compliance – Food‑grade, electrical and ventilation compliance matters; missing compliance can reduce LVR or require shorter terms.

Confirm if your used gear qualifies

Refinancing, buyouts and upgrades

• Refinance to reduce repayments – Extend term or add a balloon/residual to lower monthly outgoings, subject to asset age and policy.
• End‑of‑term buyout – Pay the residual on a finance/operating lease to take ownership, or refinance the residual to spread cost.
• Upgrade paths – Trade‑in ovens, refrigeration or POS and roll equity into a new facility; check GST/residual handling.
• Debt consolidation – Combine multiple small rentals into one facility for cleaner cash flow if lender policy allows.

Explore equipment refinance options

Frequently asked questions

Final takeaway

The right hospitality equipment finance balances ownership goals, tax treatment, asset life and repayment comfort. Compare loan and lease options side‑by‑side, confirm AASB 16 and tax outcomes with your accountant, and lock in terms that match your venue’s cash flow.

Get help choosing the best structure

Content last updated: 18 April 2026