Quick answer: Split the capital budget into landlord and building works, fitout, financeable equipment, opening stock, lease security and working capital. Equipment can often be financed separately from fitout. Preserve real cash runway after opening instead of spending every dollar before the first sale.
Questions business owners commonly ask
- We have $100k for the cafe but grease trap, exhaust and fitout are consuming it — what should be financed?
- Can I finance the kitchen equipment and keep cash for wages?
- How many months of rent and payroll should remain after the doors open?
Do not call every setup cost fitout
Separate structural works, removable equipment, furniture, POS, deposits, professional approvals, stock and opening working capital. Those costs have different useful lives and security value.
Asset finance can preserve cash
Eligible kitchen equipment may fit equipment finance better than a general unsecured facility. Structural improvements tied to the premises usually have less recoverable lender value.
Negotiate landlord contributions before borrowing
Incentives or landlord-funded base-building works can reduce debt if negotiated before the lease is final.
Opening day is not break-even day
Hospitality revenue can ramp unpredictably. Keep enough cash for wages, food, utilities, rent and tax while the customer base forms.
Related guides
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General information only. Business lending policy, security, guarantees, pricing, covenants and documentation vary by lender and transaction. This is not legal, tax or accounting advice.
Frequently asked questions
Can fitout be financed?
Some business lenders finance fitout, with different treatment from equipment.
Should equipment be financed separately?
Often worth comparing.
How much working capital?
Use a conservative opening cash-flow forecast rather than a fixed rule.
Can landlord incentives help?
They can be negotiated commercially.
Is buying an existing cafe easier?
Sometimes because fitout and trading history already exist.
Sources and verification
Need help matching this to a business-finance option?
GPS Finance can review the funding purpose, conduct, documents and lender fit before you make a formal enquiry.
