How to Finance Commercial Cooking Equipment

Did you know that there are over 30,000 restaurants in Australia? Commercial cooking equipment is needed in many facilities and businesses. These include restaurants, cafes, hotels, and other similar places. The price of all of this equipment can add up quickly. Are you looking for commercial cooking equipment for your new business? There are various options to finance commercial cooking equipment, which have been listed below.

Keep reading!

Average Price of Commercial Cooking Equipment

Before we can take a look at the financing, we should look at the prices of the most common commercial cooking equipment. This way, a solid comparison can be made between what can be obtained with and without financing.

Grills

Grills are one of the most commonly used commercial cooking equipment. With a grill, a chef can make many different cuisines.
The average price of a commercial grill is around $5,000.

Convection Ovens

Convection ovens are another type of equipment used in cooking. These are used for warming, baking, and cooking.
Commercial convection ovens cost around $3,000.

Deep Fryers

Frying isn’t always a healthy cooking method, but it is still delicious. Restaurants and diners can use it for cooking a wide variety of foods, including French fries and fried chicken.
Commercial deep fryers costs around $2,000.

Range Ovens

Range ovens have various uses in commercial kitchens. They are used for baking, broiling, and much more.
Commercial range ovens go for the average price of $5,000.

Financing Options

There are a few different financing options for commercial cooking equipment. Take a look!

Financial Loan

The first option that you have is a financial loan. To borrow this amount, you must have a business plan in place to show exactly how you plan to pay the money back.

Commercial Lease

Another option that you have is a commercial lease. This way, you do not own the equipment. Instead, you are leasing it. Leasing is a more affordable option than buying.

Benefits of Financing

There are many benefits to financing your commercial cooking equipment. Let’s take a look.

Flexibility

When you have financing, you have more flexibility. Simply because you will have a large amount of cash in hand, you can opt to buy better quality, new, and innovative equipment.

Price Benefits

There are price benefits to getting your commercial cooking equipment financed as well. You can get a better price on the equipment as you are not pressed for time, money, or quantity.

Reliability

You also have ease of use when you finance your equipment. In addition, you’ll have the option of buying new equipment that will need less maintenance.

Applying for Financing: An Overview

When you apply for financing for your commercial cooking equipment, you will need to know what to expect. Keep reading!

Different Loans

Most banks will not offer business loans unless your business is at least 3-6 months old. They call this “Trading History,” and it will show your operations at the time. However, some banks will offer New Business Loans. Feel free to shop around for different lenders. If you are applying for loans that will only finance the equipment, you are looking for an Equipment Finance Loan.

Financial Statements

You need to get the financial statements for your business. You will want to get them for the last 12 months. You will need these to show how much money you can put down on the equipment.

Tax Returns

You will also need to present your Tax Returns. These will show the past three years of your business.

Business Plan

You will also need a business plan. This will show where you plan to take your business and how you will finance the equipment.

Site Survey

You will need to do a site survey. This will ensure that the equipment will fit on the premises.

Legal documents

Legal documents include rental agreements, ABN (Australian Business Number), and licenses.

Gather your bank statements, personal information, and any other items the lender might require.

Financing Tips

It would help if you did a few things when applying for an equipment finance loan.

Make sure you read and understand everything in the application

• Get all agreements in writing
• Check your agreement before you sign
• Get the money before you spend it on the equipment

What’s Next?

Once you secure your financing, you can purchase your business’s equipment. When you purchase your equipment, you should look for a vendor that provides warranties to ensure your business has the necessary equipment for success. Additionally, you should always look for competitive pricing, a wide variety of options, and dependable customer service. Finally, make sure that the manufacturer provides the necessary certifications for the equipment. For example, in Australia, commercial cooking equipment require to carry the HACCP certification.

Maintenance and Upkeep

When you are buying new equipment, the best practice is to maintain it and keep it clean. This will save you money in the long run on repairs and replacements. The best way to maintain your commercial cooking equipment is to get involved in your local restaurant association. Here you can talk with other people in the industry and get advice from professionals. To keep your equipment clean, you will want to maintain it and look for damages. In addition, your bank may require you to get an extended warranty to ensure the lifespan of the equipment.

Commercial Cooking Equipment: Get Started

With the help of this guide, you will hopefully be able to make an informed decision about your commercial cooking equipment and your financing options. If you are looking for affordable quality commercial equipment, take a look at our products!