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Smart ways to finance hospitality equipment without choking cashflow

A practical guide to financing kitchen equipment, point‑of‑sale systems and delivery vehicles for Australian cafés, restaurants and food operators, without strangling cashflow.

16 Sept 2026Updated 16 Sept 20268 min read

Key Takeaway

Australian hospitality businesses can finance kitchen equipment, POS systems and delivery vehicles using stand-alone equipment loans, leases and fit-out funding rather than stretching home loans, keeping total repayments within a safer 15–25% of realistic revenue. Terms typically range from 3–7 years for vehicles and heavy equipment and 3–5 years for technology, with lenders capping total asset age at 5–7 years for POS and 10–15 years for vehicles. The key is matching each loan’s term to asset life and cashflow, then comparing total dollars repaid before signing.

Smart ways to finance hospitality equipment without choking cashflow

Hospitality businesses can finance kitchen equipment, POS systems and delivery vehicles using stand‑alone equipment loans, leases and structured fit‑out funding, rather than loading everything onto a home loan. The safest approach is to keep total repayments within about 15–25% of realistic revenue, match each loan term to the gear’s working life, and avoid paying interest on obsolete tech.

Commercial hospitality kitchen with stainless steel equipment and chefs at work Heavy kitchen equipment is often funded over 5–7 years to match its working life.

1. What you can actually finance in hospitality

1.1 Typical kitchen equipment

Lenders are generally comfortable funding standard, resaleable kitchen assets, for example:

  • Commercial ovens, ranges and grills
  • Refrigeration and freezers
  • Dishwashers and glasswashers
  • Coffee machines and grinders
  • Stainless benches, exhausts and smallwares packages

New gear is usually easier to fund than used. As a guide, many lenders will finance 80–100% of the cash price for new equipment and a lower percentage for older or very specialised items (see also /insights/how-much-can-i-borrow-for-business-equipment-lvrs-terms-security).

1.2 Point‑of‑sale (POS) and tech

Most POS funding covers:

  • Touchscreen terminals and tablets
  • Receipt printers and cash drawers
  • Kitchen display screens
  • Software licences and subscriptions (sometimes bundled)

Tech has a shorter life. Lenders often want POS terms at 3–5 years, with a maximum asset age of 5–7 years by the end of the loan (consistent with broader tech rules from /insights/new-vs-used-equipment-what-lenders-will-and-wont-finance).

1.3 Delivery vehicles and scooters

For delivery‑focused venues and dark kitchens, finance can cover:

  • Cars and small vans
  • Refrigerated utes
  • Scooters and motorbikes

Here, lenders usually cap total asset age at 10–15 years at the end of the term, so a 5‑year loan suits a 5–8 year old vehicle, and 5–7 years for brand‑new ones.

2. Main finance options: side‑by‑side

There’s no single “best” structure. The right answer mixes different products so each asset’s loan matches its working life.

2.1 Common facilities for hospitality equipment

Asset typeTypical productIndicative termSecurityWhen it fits best
Heavy kitchen gearChattel mortgage / lease4–7 yearsGear itselfLong‑life items with good resale value
Coffee machine onlySmall ticket equipment loan3–5 yearsMachine, personal guar.Smaller deals, income‑critical equipment
POS hardware/terminalsTechnology equipment loan3–4 yearsPOS equipmentFast‑changing tech, frequent upgrades
Delivery vehiclesVehicle chattel mortgage3–7 yearsVehicle, sometimes PGCars, vans, scooters linked to deliveries
Full fit‑out mixBlend of above + biz loan3–7 yearsMix of asset & cashflowNew venues, refurbishments and multi‑asset projects

For full fit‑outs, splitting funding into buckets is usually safer than one big blended loan. That principle is explained in detail for cafés in /insights/funding-mascot-cafe-restaurant-retail-fitout-without-killing-cashflow.

2.2 Why not just top up your home loan?

Using your home for business equipment can look cheap, but you’re often repaying a 5‑year asset over 25–30 years. Prior articles show this can nearly triple total interest versus a 5–7 year stand‑alone facility (see /insights/cross-collateralisation-property-equipment-loans-pros-cons-alternatives).

For hospitality operators, that also concentrates risk: one bad season and both the business and the family home are on the line.

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Frequently asked questions

Can I finance second-hand kitchen equipment for my café or restaurant?▾
Yes, many lenders will finance good-quality second-hand kitchen gear, but they may shorten the term and lower the loan-to-value ratio. They’ll look at age, condition, brand and resale value, and may ask for photos and detailed invoices. Be prepared to contribute more cash if the equipment is older or highly specialised.
Is equipment leasing or buying better for hospitality businesses?▾
Leasing can suit fast-changing items like POS and coffee machines, as it may allow easier upgrades and lower upfront cost. Buying via a chattel mortgage often works out cheaper over the full term and leaves you with an asset at the end. The best option depends on your tax situation, upgrade plans and how long you’ll keep the equipment.
How much can I safely borrow for hospitality equipment?▾
A practical guide is to keep combined fit-out and equipment loan repayments within roughly 15–25% of conservative annual revenue. Lenders also like to see at least 1.25–1.5 times coverage from free cashflow after expenses and owners’ drawings. If new repayments push you above these bands, you may need to scale back or stage the project.
Can a start-up restaurant get equipment finance without two years of financials?▾
It is possible, but the application must be structured carefully and usually involves smaller deal sizes. Lenders may rely on alternative evidence like bank statements, BAS, signed leases, supplier contracts and your industry experience. Rates can be higher, so it’s important to ensure projected cashflow comfortably covers repayments before committing.
Should I use my home loan to fund restaurant equipment?▾
Using your home loan can lower monthly repayments but often means paying interest over 20–30 years on assets that only last 3–7 years. That usually increases total interest significantly and puts extra risk on your family home. Stand-alone equipment finance is generally safer for hospitality operators if the numbers still work for cashflow.

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