Walk into any successful Melbourne café and you'll notice the same thing: every piece of equipment behind that bench — the commercial espresso machine, the grinder, the refrigeration, the POS system — is doing real work generating revenue. That equipment is also, almost certainly, financed. Not because the operator couldn't buy it outright, but because tying up $40,000 to $200,000+ in depreciating physical assets when you could be using that capital for wages, stock, marketing or a second location is rarely the right business decision.
The team at Integrated Finance Group has arranged equipment and asset finance for Melbourne hospitality operators across cafés, restaurants, food trucks and franchise groups since 2003, formerly with NAB's business banking team. Here's what Melbourne operators need to know about hospitality equipment finance in 2026 — structures, rates, lender criteria and how to get approval right first time.
Prime SME borrowers (2+ years trading, clean credit): 7.95% – 10.50% p.a.
Standard SME borrowers: 10.50% – 13.50% p.a.
Newer hospitality businesses (under 12 months): 13.50%+ p.a. (specialist lenders)
RBA cash rate: 4.35% (held August 2026)
Rates are indicative only. Your actual rate depends on credit profile, trading history, asset type and lender. Speak to an IFG broker for a personalised comparison.
What equipment can Melbourne cafés and restaurants finance?
The short answer: almost any tangible asset used in the business that holds some residual value. Equipment finance is available for the vast majority of commercial hospitality assets, including:
- Coffee equipment: commercial espresso machines (La Marzocco, Synesso, Slayer, Victoria Arduino), grinders, batch brewers and cold brew rigs
- Refrigeration: under-bench fridges, upright displays, blast chillers, cool rooms and ice machines
- Cooking equipment: commercial ovens (combi, deck, conveyor), commercial ranges, fryers, grills and salamanders
- Warewashing: commercial dishwashers (pass-through, underbench, flight-type) and glasswashers
- Point of sale and technology: POS terminals and peripherals, EFTPOS hardware, KDS systems, reservation management hardware
- Furniture, fixtures and fit-out components: commercial seating, benchtops, custom cabinetry and extraction systems — subject to lender criteria (see full fit-out section below)
- Food trucks and mobile equipment: converted vehicle rigs, trailer-mounted kitchen setups and mobile POS systems
What generally cannot be financed: food and beverage stock, software subscriptions, training costs, installation labour (where billed separately), and marketing. These items lack a recoverable physical value and fall outside standard equipment finance scope. If you're purchasing a bundled fit-out package, ask your supplier to provide a split quote separating the physical equipment from labour and services — most lenders only fund the tangible assets component.
For the core structural differences between finance products, see our guide: Chattel Mortgage vs Finance Lease vs Hire Purchase 2026.
What's the right structure — chattel mortgage, lease, or hire purchase?
Hospitality operators in 2026 have four main equipment finance structures to choose from. The right one depends on how you use the equipment, your cash flow cycle, your preference for ownership, and the role of the equipment in your balance sheet. The tax treatment of each structure is entirely a matter for your accountant — what follows are the credit mechanics only.
| Structure | Who owns the asset? | End of term | Best suited for |
|---|---|---|---|
| Chattel Mortgage | Your business (from day 1) | Loan paid — asset fully yours | Long-life kitchen assets, espresso machines, refrigeration |
| Finance Lease | Lender (you have use rights) | Residual payment or return | Equipment you may want to upgrade at end of term |
| Hire Purchase | Lender during term, then yours | Title transfers on final payment | Operators who want certainty of ownership at term end |
| Unsecured Business Loan | Your business (unencumbered) | Loan paid | Mixed purchases, non-financeable soft costs alongside equipment |
Tax treatment and accounting classification for all structures should be confirmed with your accountant before committing to any finance product.
For most Melbourne café and restaurant operators, the chattel mortgage is the default starting point. You own the espresso machine or refrigeration unit from day one. Fixed monthly repayments make cash flow planning straightforward. You can add a balloon payment to reduce monthly obligations if the asset holds sufficient residual value — common on commercial espresso machines from prestige brands that retain value well.
What do lenders actually assess for hospitality businesses?
Equipment finance for hospitality is assessed differently from a standard car loan or residential mortgage. Lenders are primarily looking at:
Business trading history (ABN age and GST registration): Most mainstream non-bank lenders require 2+ years of GST-registered trading history for standard full-doc equipment finance. With 12–24 months of trading, you're working with non-bank specialist lenders. Under 12 months is specialist-only territory with typically higher rates and deposit requirements. ABN age is the single biggest factor in lender eligibility — get clear on your position before you approach any lender.
Revenue and cash flow consistency: Hospitality revenue is seasonal and lumpy — particularly for businesses with strong weekend, school holiday or summer trading. Lenders who understand hospitality will look at annual turnover and monthly averages across a 12-month period, not just the last 3 months. Business bank statements (3–6 months) are almost always required alongside BAS statements.
Asset type and residual value: Commercial espresso machines from recognised brands (La Marzocco, Synesso, Victoria Arduino) have strong residual value and lenders are comfortable financing 100% of purchase price for established businesses. Generic or heavily customised equipment — bespoke cabinetry, custom extraction hoods — may require a deposit or be partially excluded from security.
Personal credit history: For sole traders and small company structures, the director's personal credit history remains part of the assessment. A clean personal credit file with no recent defaults, late payments or excessive enquiries materially improves your approval outcome.
How does full kitchen fit-out finance work?
A full commercial kitchen fit-out for a Melbourne café or restaurant typically ranges from $80,000 for a simple layout to $350,000+ for a full-service restaurant or large-format café with extraction, cool rooms, a full cook line and custom benching. Financing a fit-out is different from financing a single piece of equipment — the structure depends on what proportion of the package is financeable tangible assets versus non-financeable installation and labour costs.
How lenders assess a fit-out: Most equipment finance lenders will fund the tangible assets within a fit-out package — the commercial cooking equipment, refrigeration, dishwashing equipment, espresso machines and POS hardware. They will not fund installation labour, kitchen design fees, council approvals, or any part of the project classified as a building improvement (i.e., items that become permanently fixed to the building).
The practical result is that a $180,000 fit-out might be split as follows: $110,000 in financeable equipment (funded via chattel mortgage) and $70,000 in installation, extraction ductwork and fixed cabinetry (funded via a separate business loan or fit-out finance facility). Your supplier's split quote is the starting point for structuring the finance correctly.
For café operators who need commercial premises finance alongside the fit-out — buying or refinancing the property to own your own premises — IFG can assess both facilities simultaneously. The intersection of commercial property lending and equipment finance is where a director-level broker adds the most value.
Use our car and equipment finance calculator to estimate monthly repayments on the equipment component of your fit-out while you gather supplier quotes.
Ready to finance your café or restaurant equipment?
Talk to IFG About Hospitality Equipment Finance
Brian and Frank at IFG bring 45+ years of combined experience — including NAB business banking backgrounds — to every hospitality equipment finance application. We compare rates across a deliberately broad panel of bank, non-bank and specialist lenders, and we respond same business day, by a director.
Book a Free 15-Minute Call ☎ 0401 333 636- Can I finance a commercial espresso machine for my café?
- Yes — commercial espresso machines from recognised brands (La Marzocco, Synesso, Victoria Arduino, Slayer) are financeable assets that most lenders are comfortable with due to their strong residual value and established second-hand market. Finance is typically available for 100% of purchase price for established businesses with 2+ years of trading history. For businesses under 12 months of trading, a deposit of 10–20% may be required depending on the lender and the machine's value. Speak with an IFG broker to find the right lender for your specific café setup.
- How much deposit does a new restaurant need for equipment finance?
- For established businesses (2+ years GST-registered), many lenders will fund equipment to 100% LVR with no deposit, subject to credit assessment. For businesses with 12–24 months of trading history, a 10–20% deposit is common. For newer businesses (under 12 months of ABN history), specialist lenders will typically require a 20–30% deposit alongside alternative income documentation such as business bank statements. The equipment itself serves as security in all cases — the deposit requirement decreases as your trading history strengthens.
- Can I finance a full café or restaurant fit-out in one facility?
- Partially. A standard equipment finance facility (chattel mortgage or finance lease) covers the tangible asset component of a fit-out — cooking equipment, refrigeration, espresso machines, dishwashers, POS hardware. Installation labour, custom fixed cabinetry, council fees, and items classified as building improvements are generally not financeable under standard equipment finance. For these components, a separate business loan or fit-out finance facility is typically used. Ask your supplier for a split quote separating financeable equipment from non-financeable services before approaching any lender.
- Does my café or restaurant need to be GST-registered to get equipment finance?
- Most mainstream equipment finance lenders require GST registration as a baseline criterion, as it signals that your business has reached a trading threshold that warrants a tax registration obligation (currently $75,000 annual turnover). Non-GST-registered businesses are limited to a small group of specialist lenders, higher rates, and may face lower LVR limits. If your business is approaching the $75,000 threshold and you're planning equipment finance in the next 6–12 months, GST registration is worth discussing with your accountant before you apply for finance.
General information only — not financial, credit or tax advice. Equipment finance terms, rates, structures and lender criteria vary significantly by individual circumstances, trading history and credit profile. Tax treatment of all finance structures should be confirmed with your accountant. Speak with an ASIC-licensed finance broker before making any equipment or asset finance decision. Integrated Finance Group — BLSSA Pty Ltd ACL 391237. Brian Hermosilla CR 485802 · Frank Marin CR 486546. MFAA Members #716100 & #242075.