Fund a new fish and chip shop

If you are planning to open up a new chip shop, there will already be quite a few things on your mind. Clearly, the key part of this process is choosing your location carefully. Will you get the footfall? Is there the local demand? What is the competition from other fish and chip shops or other fast food restaurants? You then have the challenge of finding the shop, making sure it has the correct planning licences, dealing with a landlord and thinking about the rental deposit needed.

Already the costs are mounting up and just the rent and rates alone deters many people from taking the plunge to setting up their own business. In addition there is the expense of the shop refit and fish and chip shop equipment, let alone the tills, CCTV, lighting and stock.

This is why most new start fish and chip shop restaurants will look to lease frying equipment, commercial fridges and other items needed to start serving customers.

 Finance for a chip shop

Finance companies such as ours like fish and chip shops as customers. Over the years, the shop closure rate is very low compared to other non-franchise fast food outlets. It is unusual to see a chip shop close its doors, most are sold when people look to retire or move out of the business. This is one of the key reasons why we are able to get very high acceptance rates on leasing for new start companies in this sector.

Arranging finance for a chip shop fryer and associated equipment is a simple process, with little documentation involved.

  • You choose the equipment you need and the supplier you would like to deal with.
  • We then undertake a quick credit check on you and send you a rental quote based on the capital cost of the equipment. We can even recommend suppliers of kitchen equipment if needed.
  • Once you are credit cleared, we will email you the rental documents which you sign and return.
  • Your supplier will invoice us directly and install the equipment.
  • Once you are happy that the equipment is working, we will then pay your fish and chip shop equipment supplier and you pay a monthly rental over a term you decide, normally two to five years.

The interest rate you pay is the same irrespective if your lease agreement is two, three, four or five years. (Most people will sign a five-year lease to coincide with the shortest life of the equipment.) The longer the lease period, the lower the monthly rentals. The shorter the period, the less interest you pay.

You have to add on VAT to the monthly rental which you can then reclaim back every quarter. This is often a better option that spending £20,000.00 in cash upfront for example and having to find another £4,000.00 in VAT.

The lease rental documents are simple to read and are not designed to catch anyone out. The main things to be aware of are that you must insure the equipment, and secondly, you cannot sell the fryers and commercial fridges. At the end of the lease term, most customers pay a small additional rental to have free use of the fish and chip shop fryers and associated chip shop equipment.

If you wish to get a good idea of what the rentals will cost, use our free online lease calculator. (If you are a new start fish and chip shop business, make sure you tick the box that says trading less than three years.) There is absolutely no obligation on you and we will not undertake a credit check without your approval first.

Our team are on hand to help out with any questions you have about finance for a chip shop. Please just call 01494 611 456 or email for more information.

Thank you for your interest, good luck with your new business.

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