How To Offer Finance For Catering Equipment

Banner image concept

A bright, modern commercial kitchen in a UK catering business, with a chef and a supplier representative reviewing a tablet showing a finance quote for new ovens and refrigeration units; warm, professional atmosphere highlighting collaboration and smart investment in equipment.

Customer finance, explained in plain terms

Customer finance means giving your buyers a way to spread the cost of catering equipment over time, rather than paying in full upfront. In practice, you are not becoming a lender. You are offering a payment option, typically arranged through a specialist lender or a retail finance broker, that allows the customer to pay in fixed monthly instalments. For catering businesses, this is often the difference between delaying a purchase and getting a kitchen operating on schedule, especially when projects involve multiple high-ticket items.

Why hospitality buyers lean on finance

Commercial kitchens are capital intensive, and many operators prefer to protect working capital for wages, stock, and seasonal swings. Finance is attractive because it can turn a large one-off cost into a predictable monthly outgoing, which simplifies budgeting. In the UK catering equipment market, it is also common to see leasing promoted with fixed terms and potential tax advantages, while some suppliers offer 0% interest-free plans on selected ranges over 12 or 24 months. For trade customers, pay-later style facilities with approved spending limits (commonly up to around £30,000) can provide fast, flexible headroom without a traditional term loan process.

How offering finance can lift sales (without discounting)

Offering finance can increase conversion by removing the main objection: the upfront cost. It also helps customers trade up, because the decision shifts from “Can we afford this today?” to “Does this monthly payment fit our cash flow?” In catering equipment, where baskets can include ovens, refrigeration, extraction, and installation, finance can reduce drop-offs at checkout and support larger, bundled orders. It can also shorten sales cycles for urgent replacements, because customers can secure the equipment they need while keeping cash available for day-to-day operations.

Typical transaction values you will see

What catering businesses commonly finance

1. Cooking equipment (ranges, fryers, grills, combi ovens)

2. Refrigeration (upright fridges, freezers, prep counters)

3. Food preparation and handling kit (mixers, slicers, vac pack)

4. EPOS and back-office systems

5. Cold rooms

6. Coffee machines and beverage equipment

7. Furniture and stainless-steel fabrication

FCA and compliance essentials (what you must get right)

Offering finance is regulated activity in the UK, so you need the right permissions or the right structure. Marketing must be clear, fair and not misleading, and any representative APR or key terms must be presented correctly when required. You should avoid giving the impression you are the lender, and you must not provide advice unless you are authorised to do so. The safest approach for many suppliers is to act as an introducer, passing customers to an authorised broker or lender who handles eligibility, disclosures and the credit agreement.

How introducer and broker models work in practice

With an introducer model, you promote finance as a payment option and then refer the customer to a finance partner. A broker model goes further by sourcing suitable finance from a panel of lenders, matching the customer and the transaction to a product that fits their circumstances. This is especially useful in catering because customer profiles vary widely, from new limited companies buying a single oven to established operators funding a site refresh. A broker can also help you offer multiple routes, such as leasing, hire purchase, or interest-free plans on selected items, without you having to manage relationships with multiple lenders.

Standout point: Finance is not just a way to pay. It is a way to reduce friction at the point of decision.

What the customer journey looks like (step-by-step)

1. Customer chooses equipment: they build a basket or request a quote for the items they need.

2. You present a finance option: show an example monthly cost and the available term lengths, keeping it factual.

3. Customer applies: they complete a short application through the broker or lender portal.

4. Automated checks and decision: many providers can give fast decisions, particularly for straightforward cases.

5. Agreement and e-sign: the lender/broker issues the pre-contract information and the credit agreement.

6. You confirm delivery details: align delivery, installation, and any phased shipments with the finance process.

7. Goods delivered and acceptance: the customer receives the equipment and confirms acceptance where required.

8. You get paid: settlement is made to you under the agreed process.

9. Customer repays monthly: the customer makes fixed repayments to the finance provider.

Getting started with Kandoo

Kandoo is a UK-based retail finance broker that helps businesses offer finance by connecting them to a network of lenders, rather than relying on a single provider. For catering equipment sellers, that breadth matters because finance needs vary by ticket size, customer profile, and whether the buyer wants leasing, hire purchase, or other retail-style options. The practical first step is to define what you sell, your typical order values, and how you quote customers, then align that to an application journey that feels seamless on your website and in your sales process. Once set up, you can position finance as a standard payment method, using clear examples to help customers understand affordability in real terms.

Next steps to implement this week

• Add a dedicated “Finance” page covering terms, eligibility basics, and example monthly costs.

• Train your team to present finance factually (not as a recommendation).

• Identify your top 20 products to feature with representative monthly examples.

• Build finance prompts into quotes: “Buy outright” and “Spread the cost” side by side.

FAQs

What types of finance are most common for catering equipment?

Leasing, hire purchase, lease purchase, and fixed-sum credit are all common. Leasing is often chosen for predictable monthly costs and potential tax advantages, while hire purchase can suit buyers who want to own the asset.

Can I offer 0% finance on catering equipment?

Yes, many suppliers run interest-free offers on selected ranges over 12 or 24 months. These promotions are usually product-specific and depend on lender criteria and the commercial structure behind the offer.

Do you need to be FCA authorised to offer finance?

If you are carrying on regulated activity, you need the correct FCA permissions. Many equipment suppliers choose an introducer route, passing customers to an authorised broker or lender to keep the process compliant.

What order values are realistic for catering finance?

You will see everything from £500 replacement purchases up to six-figure kitchen projects. Some UK suppliers promote leasing from £500, and others work across a broad range up to £500,000 for larger operators.

Will finance help new or small catering businesses get approved?

It can, particularly where the finance is asset-based and the equipment supports the lending decision. Outcomes depend on the applicant, trading history, and affordability checks.

Can trade customers use a spending limit rather than a loan per purchase?

Yes. Some UK providers offer trade-style facilities with approved limits (often up to around £30,000) that customers can draw down against, which can suit repeat buyers and phased purchases.

How quickly can customers get a decision?

Many applications can be decided quickly online, especially for smaller ticket sizes and straightforward cases. More complex transactions may require additional checks.

How do I present APR and monthly payments correctly?

Use accurate, up-to-date examples supplied by your finance partner, and avoid implying guaranteed acceptance. Where a representative APR is required, it must be shown in the correct format with the prescribed information.

Does offering finance mean I get paid later?

Not usually. In most arrangements you are settled by the finance provider once the agreement is in place and the goods are delivered or accepted, while the customer repays monthly to the lender.

Is finance only for equipment, or can it include installation?

Often it can include associated costs, depending on the lender and how the transaction is structured. It is worth discussing typical bundles (equipment, delivery, installation) during setup.