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Finance
June 28, 2024
4 mins

Financing Catering Equipment for Your Business

Key take away points:

  1. How to Choose Financing Options Available
  2. How to Benefit from Financing Catering Equipment
  3. How to Meet High-Demand Equipment Needs for Different Businesses
  4. How to Choose the Right Type of Finance for Your Business

High-quality catering equipment is crucial for the success of any catering business. Whether you run a restaurant, a bar, or a mobile food truck, the right equipment can make or break your operation. However, acquiring this essential equipment can often come with a hefty price tag.

This is where financing options can play a vital role, enabling businesses to obtain the necessary tools without the burden of significant upfront costs.

Finance for your catering equipment

Types of financing Options Available:

  • Asset Finance: This involves using the equipment as collateral for the loan, reducing the risk for the lender and often resulting in more favourable terms for the borrower.
  • Hire Purchase: With hire purchase, you pay an initial deposit followed by fixed monthly payments. Once all payments are made, ownership of the equipment is transferred to you.
  • Leasing: Leasing allows you to use the equipment for a specified period while making regular payments. At the end of the lease, you can either return the equipment, renew the lease, or purchase the equipment at a residual value.
  • Business Loans: These are traditional loans that can be used for various business needs, including purchasing equipment. They are ideal for large-scale projects that require substantial investment.

Benefits of Financing Catering Equipment

  1. Preserving Cash Flow and Working Capital: Financing enables you to spread the cost of the equipment over time, keeping more cash in the business for day-to-day operations.
  2. Spreading Costs Over Time: With affordable monthly payments at a fixed rate, you can manage your budget more effectively and avoid large, lump-sum expenditures.
  3. Gaining a Competitive Edge: Financing enables you to invest in modern, high-quality equipment that can improve efficiency and service quality, giving you a competitive edge.

High-Demand Equipment for Different Businesses

Catering businesses come in many forms, each with unique equipment needs. Restaurants often require essential items, such as ovens, refrigeration units, dishwashers, and complete kitchen fit-outs to ensure smooth and efficient operations.

Hotels and resorts, on the other hand, may need banquet hall equipment and room service setups to cater to large events and provide in-room dining experiences.

Pubs, bars, and nightclubs rely heavily on specialised bare equipment, kitchen essentials, and furniture to create the perfect atmosphere for their guests.

Food trucks and mobile catering units also have specific needs, including vehicles and mobile setups that enable them to serve customers on the go.

Financing options can cover all these requirements, making it easier for businesses to acquire the necessary equipment without significant upfront costs.

Example of Equipment Financing

Consider a popular restaurant that needs a complete kitchen fit-out costing £100,000. Through equipment financing, the restaurant might pay an initial deposit of £10,000, followed by monthly payments of £1,800 over five years. This arrangement allows the restaurant to access high-quality equipment without depleting its cash reserves. By spreading the cost over time, the business can maintain a healthy cash flow while benefiting from the increased efficiency and service quality provided by the new equipment.

Finance For Your Customers:

For businesses looking to offer finance as an option to their own customers who are seeking catering equipment, partnering with a finance broker like Bluestone can be a strategic move. Here’s how this can benefit both your business and your customers:

  1. Attract More Customers: By offering financing options, you make it easier for customers to purchase high-value equipment. This can attract more customers who might not have the upfront capital to make a purchase outright.
  2. Increase Sales: Financing can lead to higher sales volumes and larger transaction sizes, as customers are more likely to purchase additional or more expensive equipment when they can spread the cost over time.
  3. Customer Loyalty: Providing financing solutions can enhance customer satisfaction and loyalty. Customers appreciate having flexible payment options that make their purchases more manageable.
  4. Competitive Advantage: Offering financing can set your business apart from competitors who don’t provide such options. It positions your business as a customer-centric, supportive partner.
  5. Streamlined Process: Partnering with a finance broker like Bluestone means you can offer financing without having to manage the complexities of lending. Bluestone handles the financing process, allowing you to focus on your core business operations.

Partnering with Bluestone

At Bluestone, we understand the unique needs of catering businesses and their customers. Our flexible financing solutions are designed to support growth and success. By partnering with us, you can offer your customers a range of financing options tailored to their needs, making it easier for them to invest in the high-quality equipment essential for their business.

We take pride in our consultative approach, working closely with you to provide finance that maximises your business's potential. Whether you need financing for your own equipment or want to offer financing options to your customers, Bluestone is here to help.

How to choose the right type of finance for your business 

Choosing the right type of finance to purchase new machines and equipment depends on several factors, including your business size, budget, and long-term plans.

For small to medium-sized businesses (SMEs), leasing can be an attractive option because it preserves cash flow and provides flexibility. Leasing allows businesses to use the latest equipment without the commitment of ownership, which is particularly beneficial if you anticipate upgrading frequently or if your equipment needs are likely to change over time. Monthly lease payments are often lower than loan repayments, making it easier to manage within a tight budget.

On the other hand, larger businesses or those with long-term plans might find hire purchases more suitable. With a hire purchase agreement, you make an initial deposit followed by fixed monthly payments, leading to eventual ownership of the equipment. This option can be advantageous for businesses that plan to use the equipment for many years, as it allows you to capitalise on the depreciation and potential tax benefits associated with ownership. The equipment becomes a business asset, which can be advantageous for balance sheets and long-term financial planning.

Ultimately, the best financing option will depend on your specific circumstances and financial goals. It is important to evaluate the total cost of each option, including any interest or fees, and to consider how each option aligns with your business’s operational needs and future growth plans. Consulting with a financial advisor or a financing expert at Bluestone can help you navigate these choices and select the most appropriate solution for your catering business.

Financing catering equipment can offer considerable benefits, from preserving cash flow to accessing top-notch tools that can boost your business’s efficiency and service quality.

By exploring the various financing options available, you can make informed decisions that align with your business goals.

At Bluestone, we are committed to helping you find the best financing solutions for your catering needs. Contact us today to learn more about how we can support your business's growth and success.

Prefer to talk to our team?

As an independent, award-winning team of finance professionals with more than 27 years of experience behind us, we take pride in our consultative approach when providing finance that maximises your business’ potential.

If you would like to book a no-obligation call or meeting to discuss how Bluestone could support you, complete the form below. Our team will be in touch ASAP.

BS.202406.01BL93

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