Fish and Chip Shop Equipment

Most fish and chip shops when installing either new or reconditioned fish and chip shop equipment will lease it. Leasing allows you to:

• Spread the cost over the useful life of the frying equipment

• Pay VAT on a rental as opposed to all upfront

• Helps monthly budgeting of costs

• Gain great tax allowances, all rentals are allowable against corporation tax

• Avoid obsolescence by having a set program for equipment replacement

• Buy higher quality equipment as the extra capital cost is spread over five years

• Do not use up existing bank facilities

But what are the pitfalls and reasons not to finance or lease chip shop fryers and commercial kitchen equipment?

• You have to pay interest on the capital borrowed

• There is often an upfront documentation fee, normally about £100.00+VAT. Always read the small print and ask what the documentation fee is.

• Yearly admin fees. This is a recent addition to leasing company’s profits. Many will charge a £35.00 +VAT extra fee in years two to five. Before you know it, these fees are already up to £250.00 + VAT!

• Make sure you understand exactly what you are paying. So many times, we see another leasing quote from a competitor and where we quote one month on delivery followed by 59 (a total of 60 monthly payments,) the other quote is 3+59. (A bigger deposit and a total of 62 monthly repayments.) Their quote may look cheaper, but ultimately, we are significantly lower in price.

• Insurance. If you do not tell the leasing company that the equipment is insured, they will insure it for you. Nearly all companies that pay this insurance – normally by accident – will already be insured.

• What happens at the end of the lease? Will you own the equipment for a small fee or will the leasing company look to carry on renting it to you / charge a bigger title fee?

Fish Fryer Finance specialise in lease and asset finance for your sector. We do not wish to put anyone off leasing, it is still a fantastic way of financing the equipment you need. All we wish to do is to make sure you have a good experience and use us again in the future as opposed to being caught out with the small print.

For more details, please call a member of our team on 01494 611 456, or email us on hello@fishfryerfinance.co.uk.