When you finance equipment, it is not just about getting a yes. It is about picking the structure that fits how you run your venue. The same oven can be funded in a few different ways, and the right one depends on whether you want to own it, how long you will keep it, and what you want your cash flow to look like. Here are the three main options:
Chattel mortgage: you own it from day one
A chattel mortgage is the most common choice for equipment. The lender funds the asset, you own it from the start, and the loan is secured against the gear itself. You make regular payments over an agreed term, and at the end it is fully yours. This suits venues buying gear they intend to keep for the long haul, like a good oven, a cold room or a coffee machine that will earn for years.
Finance lease: work towards owning it
With a finance lease, the lender owns the asset and leases it to you over a set term. You get full use of it the whole time, and at the end there is usually an agreed amount to pay if you want to take ownership. It is a good fit when you want the gear now, prefer structured payments, and are fairly sure you will keep the equipment for the long term.
Rental or operating lease: flexibility to upgrade
A rental, or operating lease, works more like a long-term hire. You pay to use the equipment over the term, and at the end you can typically hand it back, upgrade, or extend. This suits gear that dates quickly or that you might want to swap out, and venues that value flexibility and predictable payments over owning the asset outright.
How to choose
A few simple questions point you to the right structure:
- Do you want to own the equipment at the end?
- How long will you realistically keep it before it needs replacing?
- Do you want the lowest fuss, or the most flexibility to upgrade?
- What suits your cash flow across the year?
There is no single best option, only the best one for your situation. It is also worth a quick chat with your accountant, because each structure can be treated differently for your circumstances.
Geared can walk you through all three, match them to how your venue actually trades, and handle the paperwork so you land on the right one the first time.
