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CW Asset Finance | Vehicle & Equipment Finance Yorkshire

Catering and hospitality finance

Bar fit-out finance

A refurbishment is bought on the promise of better spend per head, and the whole point is that it should not swallow a season of cash to get there.

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Can you finance a bar fit-out?

Yes, although not usually as classic asset finance for the whole project. A bar fit-out is mostly joinery, counters, flooring, lighting and decoration, all of which become part of the building and cannot be recovered, so funders treat them as soft costs. The equipment within it — bottle coolers, glasswashers, ice machines, dispense — is fundable as assets. In practice a fit-out is funded either as a mixed facility where the equipment carries the soft costs, or as an unsecured business loan assessed on your trading.

Used kit: Rarely for the fit-out itself, since fitted joinery cannot be moved economically. Yes for the equipment within it, where coolers and glasswashers from dealers are perfectly fundable.

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What would a bar fit-out cost per month?

Business asset finance is quoted on a flat rate, so that is what this shows — with the equivalent APR underneath, because the two are not the same number. A quick guide only; your actual rate depends on the asset, term, deposit and lender.

Indicative flat rate
Approx. monthly£—
Get my exact rate
Total repayable£—
Cost of finance£—
Equivalent APR—%

Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 6.0% flat rate (equivalent to 11.5% APR representative), you would repay around £646 a month; total amount repayable approximately £31,000, of which £6,000 is the cost of finance. This calculator is for illustration only — it is not a quote or an offer of finance, and the rate and repayments you are offered will depend on the asset, term, deposit and your circumstances. CW Asset Finance is a credit broker, not a lender, and may receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval. CW Asset Finance is an Appointed Representative of Rural Finance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630701).

How lenders treat it

This is the softest end of hospitality funding. Fitted joinery, back bar shelving, counters and tiling are worth scrap value the moment they are installed, and a funder collecting them would spend more on labour than the timber is worth. So the lend is a credit decision, full stop: filed accounts, how long you have held the site, bank conduct, whether the premises are tied, and the director’s own position. The useful lever is the equipment. Gamko and Osborne bottle coolers, a Classeq glasswasher, a Hoshizaki ice machine and the cellar plant are all genuine assets, and a facility built around them can often carry a proportion of the fit-out alongside. Where the ratio is wrong, an unsecured loan is the honest answer rather than dressing a refit up as equipment finance.

Makes and models we fund

Examples of the machines we are asked to fund. This is not an exhaustive list — if what you are buying is not here, it does not mean we cannot fund it. Your supplier quote is what the agreement is written against.

MachineWhat it is
Gamko MaxiGlass bottle coolersGlass-door under-bar bottle coolers
Osborne under-bar refrigerationBack bar coolers and bottle units
IMC under-bar modulesStainless wells, sinks and speed rails
Autonumis dispense equipmentFonts, coolers and dispense pumps
Angram beer enginesHand pulls for cask ale service
Classeq G500 DuoUndercounter glasswasher for busy bars
Hoshizaki IM-130NEUnder-bar cube ice machine
Williams undercounter fridgesRefrigerated prep counters for bars
Polar back bar display coolersEntry-level bottle display coolers

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Who buys one

Licensees taking on a tired site and repositioning it, pub companies and independent operators doing a planned refurbishment cycle, and restaurants adding or rebuilding a bar to grow wet sales. The trigger is usually competitive or contractual: a new venue has opened nearby, or a pub company requires investment as a condition of a new agreement. Hotels rebuild lobby bars when the food and beverage offer is being repositioned.

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How it is treated for tax

Bought on hire purchase, business plant and machinery normally qualifies for capital allowances on the full cost even though you pay for it monthly, which is a large part of why hire purchase is the common structure. On a finance lease you generally set the rentals against profit instead. The rules change between budgets and your position depends on how you trade, so treat this as the direction of travel and get your accountant to confirm the detail before you commit.

Bar fit-out finance questions

Why can I not fund a whole bar refurbishment on asset finance?

Because most of it is not an asset in the sense a funder means. Joinery, flooring, lighting and decoration become part of the building and cannot be recovered and sold, so there is no security behind the lend. Equipment can be funded on an agreement and the rest is assessed on your accounts, or funded as a business loan.

Can I mix equipment finance and a business loan for a refit?

Yes, and it is often the best structure. Fund the coolers, glasswashers, ice machine and cellar plant on an asset agreement, where the security helps, and cover the joinery and decoration with a loan sized against turnover. Two facilities for two very different types of cost usually beats forcing everything down one route.

Does being a tied tenant change what I can fund?

It affects the assessment rather than the availability. Tied operators have less control over margin, which underwriters take into account, and your agreement may restrict what you can alter or which equipment you can install. Check the terms with the pub company before you commit to a specification, not after the order is placed.

Will my landlord own the fit-out at the end of the lease?

Frequently, yes, and that is exactly why funders treat it as soft. Landlord fixtures pass with the premises, and your lease may also require reinstatement. Read the alterations and dilapidations clauses before you spend, because they determine whether you are investing in your business or in someone else’s building.

How much fit-out cost will a funder include alongside equipment?

It varies by funder and by how strong the rest of the invoice is. Where branded, recoverable equipment makes up the bulk of the order and your accounts are sound, a reasonable proportion of installation and fit-out can usually be carried. Where the equipment is a small part of a large refurbishment, the loan route is more realistic.

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Not an offer of finance. All finance is subject to status, affordability and lender approval.

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