How Does Hospitality Equipment Finance Work in Australia?
Cafe and Hospitality
Cafes · Restaurants · Kitchen equipment
What can be financed, how chattel mortgages and leases differ, whether you need a deposit or property security, what lenders check, what can be included in the invoice, and what happens from supplier quote to installation.
Quick Answer
Hospitality equipment finance is funding used to buy or rent removable business equipment such as coffee machines, ovens, refrigeration and dishwashers. Under a chattel mortgage your business owns the equipment and the lender takes security over it; under a lease or rental structure the financier or supplier generally owns it during the term. The financier usually pays the supplier directly, and approval turns on the equipment, seller, business history and evidence that the repayment can be serviced.
Also searched as: commercial kitchen equipment finance, cafe equipment finance, restaurant equipment finance and coffee machine finance. These describe the same broad funding category, but the underlying structure may be a chattel mortgage, finance lease, hire purchase or supplier rental arrangement.
What is hospitality equipment finance and what can it pay for?
Hospitality equipment finance pays for the removable equipment a cafe, restaurant or caterer trades with, from the espresso machine on the counter to the combi oven in the kitchen, and the lender takes that equipment as its security. It is how equipment finance works in general, applied to a hospitality kitchen. Typical items include:
- Coffee: espresso machines and grinders.
- Cooking: combi, deck and pizza ovens, fryers and ranges.
- Cold: refrigeration, display fridges, freezers and ice machines.
- Cleaning: dishwashers.
- Front of house: point of sale hardware.
- Mobile: coffee carts and food vans, including financing a refrigerated van.
The finance has to be for the business. A loan that is not predominantly for personal, domestic or household purposes is not regulated under the National Credit Act, as ASIC's guidance on when the credit laws apply sets out, so this is a business product for ABN holders. The product itself is equipment finance, defined, and if you run a venue the starting point is finance for cafes and restaurants.
Where should you start: a broken machine, a new cafe, a cafe purchase or a supplier quote?
Start with the one document or check your situation depends on: a replacement quote for a broken machine, the equipment and fitout split for a new cafe, a PPSR search for a cafe purchase, or the exit terms of a supplier plan. Most people land on equipment finance because something has just happened, and each situation puts a different step first:
On mobile: swipe sideways to see all columns.
| Your situation | What to sort out first | What usually slows it down | Where this guide covers it |
|---|---|---|---|
| The espresso machine or a fridge has broken and you need a replacement fast | A written quote or tax invoice for the replacement, and whether the supplier can lend a machine while the finance settles | Used gear from a private seller, or turnover records that don't reconcile | Who fixes a broken machine and when the money is needed fast |
| You are opening a new cafe or restaurant | Which items are freestanding equipment and which are fitout, plus bank statements and point of sale data to stand in for tax returns | Items fixed to leased premises and a short trading history | Equipment or fitout and new ABN small tickets |
| You are buying an existing cafe and its equipment | A PPSR search against the seller and the serial numbers before settlement | Equipment still under the seller's finance, lease or roaster agreement | Checking equipment when buying a cafe |
| A roaster or supplier has offered a coffee machine plan | The machine, servicing and beans commitment priced separately, and the exit terms in writing | Minimum terms, automatic renewal and tied supply volumes | What to check before signing |
| You want equipment installed before 30 June | Whether each item costs less than $20,000 and can be installed ready for use in time | Delivery and installation dates, not the approval | Tax and the PPSR |
| You found used gear at auction or a private sale | Finance arranged before you bid, plus serial numbers and photos | No tax invoice and unclear title | Auction and private sellers |
Indicative, from our broking; your lender's conditions decide what is needed for your file.
Is it equipment or fitout, and does your landlord change the answer?
Freestanding equipment you could unplug and take with you is financed as equipment; anything built in, plumbed in or fixed to the building is usually treated as fitout, and your lease can move an item from one side to the other. The reason is legal. Once an item is affixed to the premises it can become a fixture, and the Personal Property Securities Act does not apply to an interest in a fixture, which is why lenders prefer freestanding equipment. The Act defines fixtures as goods, other than crops, that are affixed to land, and a lender's security over equipment is registered on the Personal Property Securities Register, which covers personal property, not the building.
Usually financed as equipment
- Freestanding
- Removable without damage
- Serial-numbered
- Can leave with you at lease end
Usually treated as fitout
- Built in or plumbed in
- Joinery
- Cool room structure and panels
- Extraction ducting
- Work fixed to the building
Your lease matters too. Western Australian small business guidance suggests negotiating so that fit-out items you buy remain your property at the end of the lease (SBDC WA, understanding commercial leases, WA guidance). Where an item is built in, the finance usually follows the fitout route; see what is fixed to the premises and how fitout is financed. Our worked example of the chattel and building split in a cafe fitout shows where items tend to land, and the cafe fitout and equipment documents checklist lists the paperwork for each side.
What is a landlord waiver and when does a lender ask for one?
A landlord waiver is a written agreement in which the landlord agrees not to claim the financed equipment and to let the lender onto the premises to remove it. A lender may ask for one when the equipment sits in leased premises, and it matters most when an item sits between equipment and fitout, such as refrigeration that is plumbed in but removable. Not every deal needs one. Whether an item is a fixture under your lease is a question for your solicitor.
A catering business adds a cool room to its leased kitchen. The removable refrigeration units are financed as equipment, while the insulated panels and the structure go through the fitout route. Because the units sit inside leased premises, the lender asks for a landlord waiver, and the caterer's solicitor reviews the lease before it is signed.
Illustrative only. Actual outcomes depend on the lease, the equipment and lender policy.
Chattel mortgage, lease, rent-try-buy or hire purchase: which suits a cafe?
A chattel mortgage usually suits a cafe that wants to own long-life equipment such as ovens and refrigeration, while a lease or rent-try-buy suits equipment it expects to upgrade or wants serviced as part of the payment. The deciding question is who should own the equipment during the term, and how GST and tax land for your business. The government's business.gov.au guidance describes leasing as renting equipment the leasing company owns, and notes that paying over time may cost more than buying upfront. The four structures compare like this:
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| Structure | Who owns it during the term | GST credit | Tax treatment | End of term | Usually fits when |
|---|---|---|---|---|---|
| Chattel mortgage | Your business, from the start | Usually claimed in full on the purchase | You claim depreciation and interest | You own it outright once paid, after any balloon | You want to own long-life equipment such as ovens and refrigeration |
| Finance lease | The financier | One-eleventh of each lease payment | Lease payments are generally deductible, subject to your circumstances | Pay the residual to keep it, or hand it back | You want lower upfront cost and a set end value |
| Rent-try-buy or operating lease | The financier or supplier | One-eleventh of each rental payment | Rental payments are generally deductible, subject to your circumstances | Return, upgrade or buy at the supplier's price | You expect to upgrade often or want service bundled |
| Hire purchase | The financier until the last payment | Usually claimed in full on the purchase | You claim depreciation and interest | Ownership passes on the final payment | You want to own it but prefer a hire structure |
Sources: Australian Taxation Office, GST, hire purchase and leasing, last updated 6 April 2017; business.gov.au, Leasing or buying vehicles and equipment, last updated 23 October 2024. Both read 30 September 2026. General comparison only; your accountant confirms the tax and GST position for your business.
A finance lease and an operating lease differ mainly on who carries the end value. A balloon payment on a chattel mortgage lowers the regular repayment and leaves a larger final one, and a residual value on a lease is what you pay to keep the equipment at the end. For the mechanics, read how a chattel mortgage works and commercial hire purchase in detail. For a worked cafe case, see chattel mortgage on an espresso machine, or go straight to equipment finance for your business.
Is it cheaper to rent, lease or finance a coffee machine?
Financing or buying a coffee machine is usually cheaper over a full term than renting one, because a rental payment can also cover servicing, flexibility and the provider's margin, and you may not own the machine at the end. Renting can still suit a cafe that values bundled servicing, lower upfront cash and frequent upgrades. The reliable comparison is total contract cost after including servicing, any bean commitment, fees, residual, balloon and end-of-term buyout. Three routes are common:
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| Option | Who owns it at the end | What the payment may include beyond the machine | Upgrade path | Watch for |
|---|---|---|---|---|
| Supplier rental or rent-try-buy | The supplier, unless you buy it out | Servicing, a beans or supply contract, sometimes insurance | Swap or upgrade within the supplier's range | Minimum terms, buyout price, exit fees |
| Supplier-arranged finance | You, once paid | Usually the machine only | Trade-in through that supplier | Promotional terms tied to one brand or a supply contract |
| Independently arranged chattel mortgage or lease | You (chattel mortgage) or the financier (lease) | The machine and installation you choose | Any make, any seller | Balloon or residual at the end |
Indicative, from our broking; compare the whole contract, not the weekly figure.
If a cafe financed $18,000 over five years at an assumed 10% annual rate with no balloon and no fees, the arithmetic is about $382 a month and about $22,947 in total repayments. That is not a current lender rate or quote. Its purpose is to show what to compare: amount financed, rate, term, fees, servicing, balloon or residual, and the total paid over the contract.
A rental may show a lower weekly figure but include servicing or flexibility; a chattel mortgage may have a higher scheduled repayment but leave the cafe owning the machine. Compare total contract cost and the end position, not the headline weekly payment.
An independently arranged structure can finance any make from any seller. A supplier plan may bundle servicing or a beans contract, which is worth pricing separately so you can see what the machine itself is costing you. Our guide to coffee machine finance for cafes works through the options, or talk to us about a coffee machine.
Is a free coffee machine from a roaster really free?
A roaster-supplied machine may be economically recovered through minimum bean volumes, bean pricing, contract duration or other supply commitments, and the roaster may retain ownership. It can still suit a new cafe that wants servicing included and lower upfront cash. The point is to price the machine, servicing and coffee commitment separately, then check what happens to the machine and contract if you change roasters, close or sell.
What should you check before signing a coffee machine rental or supply contract?
Check six things in writing before you sign any rental, rent-try-buy or roaster supply contract:
- Ownership. Who owns the machine during the term and at the end.
- Minimum term. How long you are committed, and whether the contract renews automatically.
- Exit cost. The payout or buyout price if you close, sell the cafe or change supplier.
- Supply commitment. Any minimum volume of beans or milk, and what happens if you fall short.
- Servicing. What is included, how quickly repairs are attended, and whether a loan machine is provided while yours is out.
- Transfer. Whether the contract can pass to a buyer if you sell the business.
- Personal or director guarantee. Whether the owner is guaranteeing the company's obligations even though the supplier or financier owns the machine.
A supplier owning the machine does not automatically limit your exposure to the machine itself. Read any guarantee separately from the rental or supply obligations. If a solicitor is reviewing your lease, have them read the supply contract at the same time; it binds the business in the same way.
Unfair contract terms law can protect a cafe here. It applies to a standard form contract, one offered largely take it or leave it, where one party is a small business employing fewer than 100 people or with turnover under $10 million in the last income year. A court can void a term that causes a significant imbalance, is not reasonably necessary to protect the supplier and would cause detriment; ASIC's own example is a lease of shop fittings that makes the business keep paying even when the goods don't work (ASIC, INFO 211, unfair contract term protections for small businesses, read 30 September 2026). ASIC covers finance contracts, and the ACCC and state consumer agencies cover supply and rental contracts for goods. Only a court can find a term unfair, so treat this as leverage in negotiation, not a guarantee.
How is financed hospitality equipment treated for tax and the PPSR?
A small business with aggregated turnover under $10 million can immediately write off financed hospitality equipment costing less than $20,000 per asset; dearer items are depreciated, and a lender or lessor usually registers its interest on the PPSR. The instant asset write-off is now law and permanent from 1 July 2026: an eligible asset qualifies if it is first used or installed ready for use in that income year (Australian Taxation Office, $20,000 instant asset write-off, updated 27 August 2026, read 30 September 2026). Assets costing $20,000 or more can go into the small business simplified depreciation pool, at 15% in the first income year and 30% each year after. The limit applies to new and second-hand assets alike; a GST-registered business that can claim the full GST credit measures the cost excluding GST; and with a trade-in, it is the full price before the trade-in credit that must be under the limit (Australian Taxation Office, Instant asset write-off for eligible businesses, updated 28 August 2026, read 30 September 2026). The write-off follows whoever holds the asset, so it sits with your business under a chattel mortgage or hire purchase, while under a lease you usually claim the lease payments instead. A business not using the simplified rules depreciates over the asset's effective life, which the ATO sets for hospitality assets:
| Asset | Effective life (years) | Date of application |
|---|---|---|
| Coffee making machines, including espresso and drip filter | 5 | 1 July 2005 |
| Dishwasher machines | 8 | 1 July 2005 |
| Refrigeration assets generally, including blast chillers, refrigeration cabinets, standalone freezers and refrigerators | 10 | 1 July 2014 |
| Ice making machines | 8 | 1 July 2014 |
| Insulation panels in cool or freezer rooms | 40 | 1 July 2014 |
| Kitchen exhaust fans | 5 | 1 July 2005 |
Sources: Income Tax Assessment (Effective Life of Depreciating Assets) Determination 2025, Table A, cafes, restaurants, takeaway food services, pubs, taverns, bars and clubs (hospitality) (45110 to 45302), in force from 15 September 2025, which carries the tables of the withdrawn TR 2022/1. Read 30 September 2026. You can self-assess effective life instead; confirm with your accountant.
Timing matters around the end of the financial year; timing an installation before 30 June covers it, and splitting a cafe equipment purchase around the write-off covers the structure. The structure you pick also changes how GST credits on equipment and depreciation on equipment are claimed, as the structure table shows; the wider rules sit under GST and tax under each structure. How the write-off, depreciation and GST apply to your business is a question for your accountant.
Does leased equipment need to be registered on the PPSR?
Leased equipment is often registered on the PPSR, and it is the lessor that registers, not you. A lease is a PPS lease when the lessor is regularly engaged in the business of leasing goods and the term is more than two years, for leases entered on or after 20 May 2017 (PPSR, leases, bailments and consignments; Personal Property Securities Act 2009 s 13, Meaning of PPS lease). The PPSR's own hire and rental case study shows why lessors register: an owner that did not register a hire running beyond two years found its interest ineffective against the hirer's liquidator. For your business the practical point is simpler. Expect a registration against the business to appear when the lease starts, and check it is removed when the lease ends.
Sources: PPSR, Leases, bailments and consignments, no date shown; PPSR, Hire and rental: Heavy Hitter Haulage; Personal Property Securities Act 2009, Compilation No. 22, 14 October 2024, ss 8(1)(j), 10 and 13. All read 30 September 2026. General information, not legal advice.
Can you finance used or refurbished kitchen and coffee equipment?
Yes, lenders finance used and refurbished kitchen and coffee equipment when its age, condition, seller and serial number hold up, and they read the equipment before they read the business. A used equipment file usually comes together in this order:
- Invoice. A tax invoice or bill of sale in the borrowing entity's name.
- Identity of the equipment. Serial numbers and photos.
- Search. A PPSR serial search where the item is serial-numbered, to confirm nobody else holds security over it.
- Valuation. A valuation or inspection, if the lender asks for one.
- Deposit. A deposit is more likely on older or privately bought items.
We ask for the serial numbers and photos up front, because they are what most often holds a used equipment file. Second-hand cafe equipment finance covers what lenders accept, and how used and new equipment compare on valuation and deposit covers why a deposit comes up.
What if you buy at auction or from a private seller?
Equipment bought at auction or from a private seller can still be financed, but arrange the finance before you bid, because an auction does not wait for a lender. Buying through a private sale changes two things: a seller who can't issue a tax invoice changes the GST position, and it lowers the lender's comfort with the price and the title. Age limits and auction procedure sit in their own guide; see age limits and auction rules in full.
A restaurant buys ex-rental combi ovens from a private seller who can't issue a tax invoice. It sends the lender a PPSR serial search, photos and a bill of sale. The lender asks for a deposit, and the restaurant refers the GST position to its accountant before settling.
Illustrative only. Actual outcomes depend on the equipment, the seller and lender policy.
Is there a minimum amount to finance a single machine, fridge or oven?
There is no single minimum: each lender sets its own floor, so a single coffee machine, fridge or oven can be financed if it clears that lender's minimum. Below it, a supplier rental or an unsecured option may be offered instead. Our note on low doc finance for cafe kitchen equipment covers how a small ticket is usually assessed.
Can a new cafe get equipment finance without two years of financials?
Yes, some lenders will assess a new cafe without two years of tax returns, but they replace missing history with other evidence. That can include the owner's hospitality experience, business bank statements, point of sale data if the venue is already trading, the supplier quote, a deposit and evidence of the broader project budget. A brand-new venue and an eight-month-old venue are not the same file, so match the lender to the actual stage of the business rather than assuming every new ABN is treated alike. How low doc asset finance works explains the evidence lenders accept, and the cafe loan pack sets out what to prepare.
What should a new cafe budget for beyond the equipment finance?
A new cafe can have enough equipment finance and still be short of cash on opening day. Build the opening cash requirement separately from the equipment approval and include:
- lease bond, advance rent and landlord requirements;
- fitout items the equipment lender will not fund;
- supplier deposits and any freight or installation shortfall;
- professional, licensing and opening costs;
- opening stock and consumables;
- wages, utilities and other costs before sales settle into a normal pattern; and
- a trading buffer for the first quieter-than-planned weeks.
The useful question is not only "how much equipment finance can I get?" but "after settlement, what cash still has to come from me?" Work that out before paying non-refundable supplier deposits.
Practitioner guidance from the transaction sequence, not a lender-wide rule. Actual cash requirements depend on the lease, suppliers, venue and finance structure.
A cafe open eight months finances a two-group espresso machine and grinder as a small ticket. Bank statements and point of sale exports stand in for a tax return, and the owner compares a chattel mortgage with rent-try-buy on who owns the machine at the end.
Illustrative only. Actual outcomes depend on the business, the equipment and lender policy.
How much can you finance, and can freight, installation or several items go into one facility?
There is no Australia-wide minimum or maximum for hospitality equipment finance. The amount depends on the lender, the business's capacity to repay, the equipment, seller and documentation. One facility can sometimes cover several removable assets and more than one supplier, while fixed building work may need to be split into fitout finance. Ask before ordering whether delivery, installation, commissioning or other supplier costs can be included, because treatment differs by lender and invoice.
| Cost or item | How it is usually treated | What to check before you order |
|---|---|---|
| Coffee machine, oven, fridge, freezer or dishwasher | Often equipment finance if removable and identifiable | Supplier, serial number, age and whether the item is fixed to the premises |
| Several pieces of equipment | Can sometimes be grouped into one facility | Whether each invoice and supplier can settle under the same approval |
| Freight and delivery | May be included when it forms part of the supplier invoice | Whether the lender treats it as part of the asset cost |
| Installation and commissioning | May be included where it is directly tied to installing the financed equipment | Separate removable-equipment installation from fixed building work |
| Electrical upgrades, plumbing, extraction, joinery and structural cool-room work | Usually fitout or another funding route | What becomes part of the building and what remains removable equipment |
| Ongoing software, subscriptions or service contracts | Usually an operating expense rather than the financed asset | Whether the supplier has bundled recurring services into the quoted payment |
Indicative only. A lender's credit approval and settlement conditions decide what it will include in a particular facility.
Can you get approved before choosing the exact equipment?
Sometimes. Some hospitality finance providers allow conditional approval before the exact machine or kitchen package is finalised, then confirm the asset and supplier before settlement. That can be useful when you want a spending ceiling before negotiating with suppliers. Do not treat a conditional approval as permission to buy anything: the final equipment, invoice, seller and settlement conditions still have to satisfy the financier.
Should you pay the supplier a deposit before finance is approved?
Do not assume a lender will reimburse a deposit you have already paid. Before paying a non-refundable deposit, confirm that the equipment is acceptable to the lender, the invoice will be issued to the correct borrowing entity, the supplier can meet the lender's settlement process and the remaining payment timing works with delivery. This matters most with imported equipment, custom fabrication and auction purchases, where the supplier may want money before the asset is ready for normal asset-finance settlement.
Can imported hospitality equipment be financed?
It can be, but imported equipment creates extra timing and verification questions: who the supplier is, when title passes, whether the lender will fund before the equipment is in Australia, the Australian-dollar landed cost, warranty and local support, serial identification, shipping evidence and who funds any overseas deposit. Map the deposit, production payment, shipping balance and commissioning payment before you commit. Do not assume a standard chattel mortgage will fund every overseas payment milestone.
Do you need a deposit or property security, and what makes hospitality equipment finance harder?
Not every hospitality equipment deal needs a deposit or property security. New equipment from an established supplier can be easier to fund against the equipment itself, while a deposit is more likely when the business is new, the equipment is used or specialised, the seller is private or the lender values the asset below the purchase price. Company borrowers may still be asked for director guarantees, and fitout or broader business funding can have different security requirements. The cafe loan pack lists the evidence that answers most of these questions up front.
Do you need a deposit for cafe or restaurant equipment finance?
Sometimes, but there is no universal deposit percentage. The deposit is a credit decision, not a fixed feature of hospitality equipment finance. It becomes more likely when the lender wants the owner to carry part of the risk, particularly on a new business, used equipment, private sale, highly specialised asset or a purchase price that is hard to support. Ask for the required cash contribution before you sign the supplier order.
Do you need to put your home or commercial property up as security?
Usually the financed equipment is the primary asset supporting an equipment-finance facility, so a standard equipment loan does not automatically require a mortgage over property. That does not mean every file is unsecured: lender requirements vary, director guarantees may apply, and a fitout loan, working-capital facility or larger higher-risk proposal can be structured differently. If property security is proposed, compare that structure separately from pure equipment finance.
Can bad credit, arrears or ATO debt stop equipment finance?
They can reduce the lender pool or change the conditions, but the answer depends on the issue rather than the label. A lender may want to know the amount outstanding, what caused it, whether a payment arrangement is being maintained, whether recent repayments have been made on time and whether current trading supports the new equipment repayment. Present the explanation and evidence with the application instead of waiting for the lender to discover it.
What if the cafe, restaurant or venue is seasonal?
A seasonal venue should show the lender its monthly trading pattern, not just one annual turnover number. Coastal venues, event businesses and tourism locations can have strong peak months and weak off-season months, so line up monthly POS sales, merchant settlements and bank balances and explain how the equipment repayment is covered through the quiet period. Standard equipment finance commonly uses scheduled repayments, so ask how the proposed repayment profile behaves in your low season before you sign.
How do lenders check cafe turnover for equipment finance?
Lenders check cafe turnover by reconciling point of sale reports, merchant settlements, delivery app payouts, BAS and bank statements against each other, and they look for the same sales story in every record. The usual set:
- Point of sale reports: sales by day and by payment type.
- Merchant settlements: what the card terminal actually paid into the account; see how your merchant facility affects approval.
- Delivery app payouts: usually paid net of the platform's fees, so they rarely match gross sales line for line.
- BAS: the turnover declared to the ATO.
- Bank statements: where every stream in this list should land.
The figures do not have to match line for line. Delivery platforms usually pay net of fees, merchant settlements can cross reporting periods, cash sales do not appear in card settlements, refunds move in the opposite direction and BAS is prepared on a different reporting cycle. The issue is whether the differences can be explained and the same underlying sales story can be reconciled.
The ATO publishes small business benchmarks for coffee shops, drawn from 2023 to 2024 tax returns, and cost of sales to turnover is the key range:
| Annual turnover | Cost of sales to turnover | Average cost of sales | Total expenses to turnover |
|---|---|---|---|
| $65,000 to $250,000 | 34% to 42% | 38% | 73% to 86% |
| $250,001 to $600,000 | 35% to 41% | 38% | 81% to 90% |
| More than $600,000 | 33% to 38% | 36% | 86% to 93% |
Source: Australian Taxation Office, Coffee shops small business benchmarks, from 2023 to 2024 tax returns, last updated 16 March 2026, read 30 September 2026. The benchmarks do not apply to coffee carts, vans or other mobile coffee retailers. A lender may compare your figures against these ranges; your accountant explains how they apply to you.
The Reserve Bank's March 2026 Financial Stability Review notes that company insolvency rates remain elevated in some industries, particularly hospitality and construction, which is why turnover evidence gets read closely. The cafe turnover proof pack and the point of sale reconciliation checklist show how to line the records up before a lender sees them.
What do you need to apply, and how long does it take?
To apply you need the business's ABN and entity details, a quote or tax invoice, serial numbers and trading evidence; how long it takes depends mostly on how complete that file is when it goes in. The documents:
- ABN and entity details for the business that will own or lease the equipment.
- A quote or tax invoice in the entity's name.
- Serial numbers for each item.
- Bank statements or financials, depending on the documentation tier.
- Point of sale and merchant exports.
- Seller details, for used items.
If the supplier wants a deposit before the lender has approved the asset, stop and confirm whether that deposit can sit inside the final settlement or must come from your own cash. If the money is needed quickly, see fast cafe funding options, or check your eligibility first.
From our broking, indicative
Based on hospitality equipment files for ABN holders, as of September 2026.
- A single new machine from a dealer, with a complete file, is the fastest hospitality equipment approval we see. A full kitchen package or used equipment from a private seller takes longer, because the invoices, serial numbers and seller details all have to land first.
- Three things stall more cafe equipment files than anything else: turnover that can't be matched across POS, merchant and bank records; a seller who can't issue a tax invoice; and equipment that turns out to be fixed to the premises.
- Lenders tend to ask for a deposit when the equipment is used, specialised or bought privately, or when the business is new. We tell you before we submit.
These observations move with lender appetite and equipment type, and we re-date them at each review. Indicative only, based on files we have placed; not a quote, an offer or a statement of approval likelihood. Not financial advice.
What happens after you apply, from approval to the equipment being installed?
Once the lender approves the file, you sign the finance documents, the lender pays the supplier against a tax invoice in your business's name, and the equipment is delivered and installed; repayments then start on the schedule in your contract. The usual sequence:
- Approval and conditions. The lender may set conditions, such as a deposit, a landlord waiver or a valuation, which have to be met before settlement.
- Documents. You sign the contract, and the lender checks that the tax invoice matches the equipment, the serial numbers and the borrowing entity.
- Insurance. Lenders commonly ask for the equipment to be insured, with their interest noted on the policy.
- Settlement. The lender usually pays the supplier directly rather than paying you.
- Registration. The lender or lessor registers its security interest on the Personal Property Securities Register against the business.
- Delivery and installation. Keep the installation date, because the write-off turns on when the item is installed ready for use.
- Repayments. Repayments start on the contract schedule; keep the contract and tax invoice with your BAS records.
If you are chasing a 30 June installation, work backwards from the install date, not the approval date. When you are ready to start, check your eligibility or send us the quote.
Can you refinance cafe equipment you already own or still owe money on?
Yes, depending on the asset and lender. If equipment is already financed, the existing financier usually provides a payout figure and its security, registered on the Personal Property Securities Register, must be dealt with before the asset is sold, traded or refinanced. If equipment is owned outright, some structures may allow the business to raise funds against it or sell and finance it back, but the financier will assess the asset's age, value, ownership, condition and resale market. Compare the cash actually released with the payout, fees, new finance cost and tax consequences before proceeding.
What happens if the equipment still has finance owing?
Ask the existing financier for a current payout figure first. The payout is what has to be cleared to end the existing facility, and it may differ from the simple sum of the remaining scheduled repayments because the contract can contain interest adjustments, fees or other settlement terms. If another lender is refinancing the equipment, settlement normally has to deal with the old lender's security and the new lender's security in the correct order.
Can you trade in or sell equipment that is still financed?
Yes, but a trade-in does not automatically extinguish the old finance. Compare the dealer's trade-in value with the lender's payout figure. If the trade value is lower than the payout, the shortfall still has to be funded; if it is higher, the surplus may be available toward the replacement subject to the settlement structure. Do not promise clear title to a buyer until the existing lender's interest can be released.
Can you raise working capital against equipment you already own?
Potentially. An outright-owned asset can sometimes support a refinance, sale-and-leaseback or similar capital-raising structure where the financier is comfortable with the asset and ownership can be verified. This is most workable where the equipment has an identifiable resale market, clear serial numbers, evidence of purchase and enough current value to support the proposed facility. The amount of cash released can be materially less than the original purchase price, so work from the lender's current value rather than what the equipment cost new.
What happens for tax when financed equipment is sold or refinanced?
Selling or disposing of business equipment can create a balancing adjustment or other tax consequence depending on how the asset has been depreciated and which structure was used. Refinancing by itself is not the same as selling the asset, while a sale-and-leaseback involves an actual disposal and new financing arrangement. Have your accountant calculate the tax effect before settlement if the transaction changes ownership or disposes of an asset.
A cafe owes $18,000 on its existing machine and the dealer offers $14,000 as a trade-in. The $4,000 gap does not disappear: it has to be paid from cash or incorporated into a structure the new lender is willing to approve. The cafe gets the payout figure before accepting the trade and confirms how the old PPSR interest will be released at settlement.
Illustrative only. Actual payouts, values, tax treatment and lender policy vary.
What happens when equipment breaks, needs upgrading or the cafe is sold?
If financed equipment breaks you still owe the balance, an upgrade usually means paying out or refinancing the contract, and a cafe sale needs the finance paid out or transferred with the lender's consent. Check the payout terms before you sign. When a machine breaks, weigh the repair cost against what is still owed; whether to repair or replace cafe equipment walks through that decision.
Who fixes a financed coffee machine or fridge that breaks: the supplier or the lender?
The supplier does, not the lender. A business that buys goods costing less than $100,000 to help run it has consumer guarantee rights, so an espresso machine or fridge must be of acceptable quality and fit for its stated purpose. A major failure entitles you to a refund or replacement and a minor one to a free repair, the supplier can't send you to the manufacturer instead, and the guarantees can still apply after the manufacturer's warranty has ended (business.gov.au, Australian Consumer Law and your business, updated 27 May 2025, read 30 September 2026). The finance contract is separate from the supply, so repayments usually continue while the fault is sorted out. Tell the lender early, keep the supplier's service report, and check whether the supplier or roaster provides a loan machine in the meantime.
Can you roll an upgrade into existing finance?
Sometimes. Some lenders let you pay out the existing contract and refinance a replacement, or add equipment under an existing facility, and the payout figure decides whether it makes sense. The full refinance, trade-in and cash-release section explains what happens to the old facility and security, and how lenders view a five-year equipment refresh covers the timing.
When you sell the cafe, financed equipment has to be paid out, or transferred with the lender's consent, before it goes with the business. The guide to buying or selling the business covers how the rest of the deal is funded.
What should you check about the equipment when buying an existing cafe?
Search the PPSR before settlement, against the seller's business and against the serial numbers of the major equipment, to see whether a lender or lessor still holds an interest in it. Equipment under the seller's finance needs to be paid out or released at settlement, and a leased or roaster-supplied machine may not be the seller's to sell at all. Ask for the rental and supply contracts with the sale documents, and have your solicitor confirm what transfers. Buying a cafe with ageing equipment covers the finance timing, and how a business purchase is funded covers the goodwill.
Hospitality equipment finance can fund removable equipment, but the right structure depends on the asset, supplier, ownership outcome and the business behind it. Before you order: separate equipment from fitout, confirm whether freight and installation can be included, and do not assume a supplier deposit will be reimbursed. Approval: a deposit or extra support is more likely on new businesses, used or specialised gear and private sales; standard equipment finance does not automatically require property security. Structure: compare who owns the equipment, total contract cost, GST and tax treatment, servicing, balloon or residual and exit terms. Evidence: make POS, merchant, delivery-app, BAS and bank records tell the same explainable sales story. After settlement: keep the invoice, serial numbers, insurance, installation date and payout terms. If you later upgrade, trade or raise cash against the equipment, start with the current payout, PPSR position and market value rather than the original purchase price.
Key takeaway: work from the whole transaction, not just the machine price. The supplier contract, opening cash budget, fitout split, deposit timing, turnover evidence, end-of-term ownership and eventual exit can matter as much as the headline repayment.What else do cafe and restaurant owners ask about hospitality equipment finance?
There are four main structures: a chattel mortgage, a finance lease, a rent-try-buy or operating lease, and hire purchase. The choice turns on who owns the equipment during the term and how GST and tax land for your business. Each is set out side by side in the chattel mortgage, lease and hire purchase comparison, and your accountant confirms the tax position.
Potentially. If equipment is still financed, start with the existing lender's payout figure and deal with its security before the asset is sold, traded or refinanced. If the equipment is owned outright, some structures may allow the business to raise funds against it, subject to the asset's age, value, ownership and resale market.
Yes. A coffee machine can be financed new or used, through a chattel mortgage, a lease or a supplier's own plan. Compare who owns the machine at the end and what is bundled into the payment, such as servicing or a beans contract, rather than the headline payment; the coffee machine comparison sets the options out.
It can be if you value bundled servicing, lower upfront cash and frequent upgrades. A rental can cost more over the full period because the payment may include servicing, flexibility and the provider's margin, and you may not own the machine at the end. Compare the total contract cost, servicing, any supply commitment and end-of-term buyout; see how renting compares with financing a coffee machine.
Yes, if it is removable equipment used in the business, such as ovens, fryers, refrigeration and dishwashers. Items that are built in or fixed to the building may be treated as fitout instead, and follow a different finance route. See where the equipment and fitout line falls.
It is easier when turnover is easy to prove and the equipment is new or has a clear seller. It gets harder with a short trading history, a private seller who can't issue a tax invoice, or items fixed to the premises, and a deposit becomes more likely. Preparing a cafe loan pack puts the evidence in order before you apply.
A fixture is something attached to the premises so that it becomes part of the building. The Personal Property Securities Act does not apply to an interest in a fixture, which is why lenders prefer freestanding equipment they can take security over. Whether a particular item is a fixture under your lease is a question for your solicitor; see how fixtures affect finance.
The ATO sets a 5-year effective life for coffee making machines, including espresso and drip filter machines, which works out to 20% a year on the prime cost method or 40% on diminishing value. A small business using the simplified rules instead writes off a machine under $20,000 immediately, or pools a dearer one at 15% in the first year and 30% after that. Your accountant confirms which method suits your business; the tax and PPSR section lists other kitchen equipment.
Usually, yes. A business can usually claim depreciation on a coffee machine it uses to trade, and a small business with aggregated turnover under $10 million can immediately write off an eligible asset costing less than $20,000. Your accountant confirms the claim; how the instant asset write-off works sets out the conditions.
There are three: a supplier rental or rent-try-buy plan, supplier-arranged finance, or an independently arranged chattel mortgage or lease. They differ on who owns the machine at the end, what the payment includes and which makes you can choose. Compare coffee machine options with us.
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