If you're planning a restaurant fitout in Canning Vale, the most useful thing you can do is split the project into assets you can finance and costs you may need to cover another way. That one step shapes which loan suits you and how much cash you'll need to keep in the bank.
A fitout is rarely one purchase. It's ovens, fridges and extraction on one side, and walls, flooring and joinery on the other. Lenders often treat these differently, so a clear list before you speak to anyone saves you time.
Can You Finance a Restaurant Fitout With Asset Finance?
Often, yes. Asset finance can be used to fund physical items such as commercial kitchen equipment, with the item usually acting as security for the loan. Items that are built into the premises, like plumbing or wall linings, are harder to finance this way and may need a different product.
The main trade-off is that the lender can usually repossess the asset if repayments are missed. Lenders also look at your business history, so a brand new venture may face more questions or a larger deposit requirement.
For kitchen gear in particular, our equipment finance option is built around this kind of purchase. Think combi ovens, coolrooms, dishwashers and coffee machines.
Equipment Finance or a Business Loan: Which Suits a Fitout?
Equipment finance suits individual items you can point to and list on an invoice, while a business loan suits the mixed costs that don't fit neatly into one asset. Many owners end up using both.
The difference comes down to flexibility versus structure. Equipment finance is tied to the asset and often has a clearer repayment plan. A business loan gives you more freedom in how you spend the money, but it may be unsecured or secured against other things, and that can change the rate and terms you're offered. Rates depend on your lender, your financials and the security offered.
If your fitout also involves a larger commercial property purchase or improvement, commercial loans may be worth a conversation too.
Leasing vs Buying Restaurant Equipment: What Changes?
Buying means you own the equipment at the end, while leasing usually means lower commitments along the way and different ownership terms at the end. Which one suits you depends on how long you expect to keep the gear and how your accountant advises you to treat it.
Buying can cost more upfront and ties you to the equipment as it ages. Leasing can leave you with a final payment or a need to return or replace the item. Tax treatment differs between the two, so please speak with your accountant before choosing. We can run the finance side, and they can advise on the tax side.
A Worked Example: Financing a Kitchen Package
A $60,000 kitchen equipment package financed over five years at an illustrative 6.75% p.a. comes to roughly $1,181 a month in repayments. That figure is an example only. Your actual rate and repayment will depend on the lender, your business profile and the structure of the deal.
Consider a Canning Vale cafe owner opening a second site who needs this package. Paying cash would drain most of their working capital, leaving little for rent, wages and stock in the first quiet months. Instead, they finance the equipment and keep their cash for running costs. They stay on top of repayments through a steady opening period, and the equipment is paid off at the end of the term.
The trade-off is that they pay interest on top of the $60,000, so the total cost is higher than paying cash. For them, keeping cash flexible was worth it. Before you commit, ask your broker to run the numbers for your own situation.
Keeping Cash Flow Healthy While You Open the Doors
A new restaurant often spends money for weeks before it earns any, so plan your finance around the gap between fitout completion and steady trading. Equipment repayments are only one piece of that picture.
Builders, signage, licences, stock and staff training all need paying around the same time. If your cash is tight, working capital loans or other cashflow solutions can cover that bridge. Both add repayments, so it's worth making sure your forecast can carry them.
If you're in the Canning Vale area, you're also close to a mix of industrial, trade and commercial suppliers, so it's worth getting several quotes on equipment and trades. A written quote helps a lender assess the purchase, and it helps you compare options.
Getting Your Application Ready Before You Apply
The strongest applications tell a clear story: what you're buying, why, and how the business will afford it. Lenders generally want to see supplier quotes and some evidence of how your business earns, whether that's trading history or a realistic plan for a new venture.
Talking to a broker before you apply helps because every lender has its own appetite. Applying to several lenders yourself can leave multiple credit enquiries on your file. If your credit history has a few bumps, there are also impaired credit loans, though these often come with higher costs.
We're a local team who like seeing neighbourhood food businesses succeed. If you'd like to talk through your fitout plans, call one of our team or book an appointment at a time that works for you. We'll look at your numbers together and work out a finance structure that fits.
