Quick answer
Equipment for New Zealand cafés, restaurants, salons, clinics and workshops is usually funded with equipment finance secured on the item itself, unsecured term funding sized on turnover (typically $5,000 to $500,000), or a property-secured loan ($20,000 to $5,000,000) when equipment is part of a bigger project. Match the term to the equipment's working life, and check whether Investment Boost applies to new items.
Key points
- Equipment that lasts years is usually best paid for over years.
- Investment Boost lets businesses claim 20% of the cost of eligible new assets upfront; NZ-sourced second-hand assets don't qualify.
- Installation, plumbing, electrical work and training often add a lot to the sticker price.
- Know what you own, lease or still owe on — lenders will ask.
On the main street, equipment is the business. A café without its espresso machine is a room with chairs. A bakery without its oven, a salon without its basins, a physio without treatment tables, a workshop without its hoist — none of them can trade. So when equipment fails, or when it’s time to upgrade, the funding question is urgent and important at the same time.
What equipment do main-street businesses fund?
| Business | Typical equipment |
|---|---|
| Café | Espresso machine, grinders, cabinet fridges, dishwasher, ovens |
| Restaurant and bar | Combi ovens, fryers, cool rooms, refrigeration, extraction, draught systems |
| Bakery | Deck ovens, mixers, provers, sheeters |
| Salon and barber | Chairs, basins, stations, colour processors |
| Clinic and vet | Treatment tables, imaging, dental chairs, diagnostic gear |
| Trade counter | Hoists, diagnostic tools, cutting tables, printers |
| Retail | POS, display refrigeration, security systems |
Why match the term to the equipment’s life?
A good commercial oven or espresso machine can serve a business for many years. Paying for it from a single season’s cash flow puts pressure on wages and stock for no good reason. Spreading the cost over a period that roughly matches its working life lets the equipment pay for itself as it earns.
The reverse also applies: avoid funding something that wears out in two years with a five-year loan.
Which funding route suits?
Equipment finance uses the equipment itself as security. It often suits big-ticket items with a resale market — ovens, refrigeration, vehicles, imaging.
Unsecured term funding — typically $5,000 to $500,000 for trading businesses, sized on turnover and bank statements — suits a mix of items, installation costs, or equipment that’s hard to repossess or resell.
Property-secured business loans — $20,000 to $5,000,000 — suit equipment as part of a bigger project such as a fit-out, a refurbishment or buying a business. See shop fit-out finance.
Leasing or rental — offered by some suppliers — can include servicing but means you won’t own the item, and the total cost may be higher. Compare carefully.
Need to replace something? Start an enquiry with your quote. There’s no credit check to ask.
New or used — and what about tax?
Investment Boost. Inland Revenue says that from 22 May 2025 businesses can claim 20% of the cost of new assets as an expense, then depreciate the remaining 80% as usual. It lists second-hand assets sourced from New Zealand among the things that don’t qualify. For a café choosing between a new machine and a used one, that can narrow the price gap.
GST. If you’re GST-registered you’ll usually claim back the GST on equipment — but you pay it up front, which matters on a large invoice.
Depreciation. Equipment is generally depreciated over its useful life. Your accountant can tell you how a purchase affects your tax.
Beyond tax, weigh reliability, warranty, the availability of servicing and parts, and energy use. A cheaper machine that breaks down mid-service isn’t cheap.
Don’t forget the hidden costs
The sticker price is rarely the full cost:
- Installation, including plumbing, electrical work and sometimes extraction
- Water filtration for coffee machines and ice makers
- Training for staff on new equipment
- Downtime while the old item is removed and the new one installed
- Disposal of the old equipment
An illustrative example
Illustrative only. A bakery’s deck oven is fifteen years old and failing more often. A new oven needs a three-phase power upgrade and a larger extraction hood.
The owner funds the oven with equipment finance over its expected working life, and uses an unsecured facility for the electrical upgrade and extraction. Because the oven is new rather than second-hand, their accountant confirms it’s eligible for Investment Boost. They schedule the install for the week after Easter, their quietest week of the year.
How do you compare buying, leasing and financing?
When a supplier offers a rental or lease, and a lender offers finance, it can be hard to compare like with like. Ask the same questions of each option:
| Question | Why it matters |
|---|---|
| What’s the total paid over the full term? | The only fair way to compare costs |
| Who owns the item at the end? | Ownership affects tax, resale value and your balance sheet |
| What’s included — servicing, parts, call-outs? | Bundled servicing can be worth a lot for complex machines |
| Can you upgrade or exit early, and at what cost? | Flexibility matters if your business changes |
| What happens if the business is sold? | Some agreements don’t transfer to a buyer |
Write the answers side by side before signing anything. If the cheapest option on paper locks you into a long agreement you can’t transfer, it may not be the cheapest for your business.
Which records should you keep for equipment?
Good equipment records help you borrow, sell and claim tax correctly. Keep:
- Invoices and finance agreements for every significant item
- Serial numbers and purchase dates
- Service history, including who serviced it and when
- Warranty documents and their expiry dates
When you apply for funding or sell the business, a simple equipment register answers the questions lenders and buyers always ask: what’s owned, what’s financed, and how old it is.
Ready to upgrade?
If your café, kitchen, salon, clinic or workshop needs new equipment, start your 60-second enquiry and have your quote handy. We won’t do a credit check when you ask, your details aren’t sent out to a list of lenders, and a person will phone you to talk it through. Accurate details — the equipment, the quote and your takings — help us match you properly first time.
Frequently asked questions
Should I buy new or second-hand equipment?
It depends on reliability, warranty, servicing and tax. Inland Revenue says second-hand assets sourced from New Zealand don't qualify for Investment Boost, so new equipment may carry better tax treatment. Weigh the full cost, not just the price.
Is leasing equipment better than buying it?
Leasing can preserve cash and include servicing, but you may pay more over time and won't own the item. Buying with finance gives you ownership. Compare the total cost and flexibility.
Can I fund the installation as well as the machine?
Yes. Installation, plumbing, electrical work and training are often funded alongside the equipment, either in the same facility or a separate one.
My machine just died. How quickly can funding happen?
Smaller unsecured amounts can sometimes come together quickly once we have your bank statements and a quote. We'll give you a realistic timeline when we talk.