Opening or fitting out a venue takes cash, and refrigeration is often one of the larger purchases. Commercial refrigeration finance can spread the cost, but it is not always cheaper than paying upfront. This guide explains the main options and what to ask before you commit. It is general information, not financial advice, so talk to your accountant.
Commercial refrigeration finance or paying outright?
Buying with cash is the simplest option. You own the equipment from day one and avoid interest and fees. The trade-off is that the money is no longer available for stock, wages or marketing. If cash flow is tight in the first months, that matters.
Equipment finance and loans for commercial refrigeration finance
With a loan or equipment finance, you borrow to buy the equipment and repay it over a set term. You usually own the equipment, and the lender may hold security over it. Compare the interest rate, fees and the total amount repaid, not just the monthly payment.
Commercial fridge lease and rental
A commercial fridge lease or rental lets you use the equipment for a term in return for regular payments. At the end you may be able to buy, upgrade, return or continue. The terms differ widely, so read what happens at the end of the agreement and what you owe if you stop early.
Lease vs buy: what to compare
- the total cost over the whole term
- fees, deposits and any balloon or residual payment
- who pays for repairs, servicing and insurance
- what happens at the end of the term
- how the payments are treated for tax in your business
An equipment lease can suit a venue that expects to upgrade often. Buying can suit equipment you plan to keep for many years. Ask your accountant how each option affects your accounts and tax.
Hospitality equipment finance
Many lenders offer hospitality equipment finance for bars, cafes and restaurants. Approval depends on your business, its history and the equipment. Have your ABN, trading history and a quote for the equipment ready.
Planning the whole fit-out
Finance works best when you know the full cost. Decide which units you need, including bar fridges, bar freezers and an ice machine. Our guides on commercial bar fridges and commercial freezers help you size each one.
Questions to ask before you sign
- What is the total amount I will pay over the term?
- Are there set-up, early exit or late fees?
- Who insures the equipment, and who pays for repairs?
- What are my options at the end of the term?
- Is the rate fixed or variable?
- Do I need to give a personal guarantee or other security?
Get the answers in writing and compare at least two offers. A lower weekly payment can still cost more over the full term.
Matching finance to the equipment
Equipment that will last for many years, such as a solid commercial freezer, often suits buying or a longer finance term. Equipment you expect to change as your venue grows may suit a shorter lease. Think about how long you will use each unit before you choose.
Keep your records
Keep your invoices, the finance agreement and the equipment details in one place. Your accountant will need them at tax time, and you will need them if you make a warranty claim. Our warranty page explains how to lodge one.
Seasonal and growing venues
A venue with a strong summer season and a slow winter may prefer payments that match its income, or a shorter lease on extra equipment. A new venue that expects to expand may want the option to add units later. Whatever you choose, build the payments into your cash flow forecast so they do not squeeze wages and stock.
Compare finance with a deposit and delivery
When you request a quote, ask about delivery, installation and any extras that will add to the total. Some venues also need a licensed technician to connect water lines or power for an ice machine. Include these costs when you decide how much to finance, and ask your accountant how to treat them.
Commercial refrigeration finance checklist
- Get a written quote for the equipment
- Compare at least two offers
- Check the total cost over the full term
- Read what happens at the end
- Speak to your accountant before you sign
Used and ex-display equipment
If budget is tight, you can also look at ex-display or refurbished units, which are listed on our clearance page with their condition shown. Check the warranty terms on each one before you decide, since cover can differ from new equipment.
Asking us about finance
Tell us in your quote request that you want finance, and include the equipment list and delivery postcode. We will reply with a price and the options available. You can read more on our finance page. Finance is offered by third parties and is subject to approval.
Frequently asked questions
Should I lease or buy commercial refrigeration?
It depends on your cash flow, how long you will keep the equipment and the terms offered. Compare the total cost over the term, not just the weekly payment.
Is equipment lease payment tax deductible?
Tax treatment depends on the type of agreement and your business. Ask your accountant before you decide.
Does Bar Freezer offer finance?
You can ask about finance when you request a quote. Finance is provided by third parties and is subject to approval.
What should I ask a lender?
Ask about the total cost, fees, the term, what happens at the end, and who is responsible for repairs and insurance.