Quick answer: If you run a café, restaurant, ghost kitchen, hotel, or institutional cafeteria, your warewashing line is non-negotiable. Health inspections, turn times, and guest experience all hinge on reliable sanitation.
But buying an undercounter, door-type, or conveyor dishwasher (plus booster heater, water treatment, install, and ventilation tweaks) can tie up the working capital you need for inventory and payroll. Leasing with a private lender aligns payments to revenue and bundles the “hidden” project costs so you’re not cash-starved mid-install.
Approval and funding timelines vary by lender, application completeness, and required conditions. If you’d like a side-by-side of structures, feel free to contact our credit analysts.
What you can lease under a dishroom project
- Machines: Undercounter, door-type (single/rack), conveyor, flight-type
- Hot side/adjacent: Booster heaters (electric/gas), pre-rinse stations, heat recovery units
- Water quality: Filtration/softening systems to protect jets and elements
- Stainless & accessories: Tables, soiled/clean landing, racks, racks lifters, scrap collectors
- HVAC & drainage: Hood updates, condensate handling, floor sinks/trenches (where eligible)
- Soft costs: Delivery, rigging, plumbing/electrical, commissioning, staff training, warranty—often eligible to bundle in the same facility
Start mapping numbers with our payment calculator and see core options at Financing & Leasing.
Why restaurants choose leasing (quick wins)
- Protect cash: Keep liquidity for food costs, staffing, and marketing rather than a big upfront cheque.
- Match cost to revenue: Step-up payments during training/launch; full amortization once volumes stabilize.
- Refresh easily: FMV leases make upgrades straightforward as throughput grows.
- Bundle the invisible: Installation, stainless tables, water treatment, and warranty included up front is cheaper than plugging gaps later with expensive working capital.
For added liquidity during opening weeks, consider a revolving buffer via Line of Credit & Working Capital.
Lease structures in plain English
| Structure | Best For | Cash-Flow Impact | End-of-Term |
|---|---|---|---|
| FMV (Operating) | Lower payments; plan to refresh in 3–5 years | Lowest monthly | Return, extend, or buy at fair value |
| $10 / Fixed-Residual (Capital) | Long-life stainless + conveyor lines | Moderate monthly | Title transfers for nominal/fixed amount |
| Sale-Leaseback | Free cash from paid-off gear | Immediate liquidity | Reacquire at residual buyout |
| Progress-Funding | Multi-trade installs/renos | Interest on drawn amounts; converts at acceptance | Term begins after commissioning |
Not sure which fits? We’ll price FMV vs. buyout side-by-side and align with your menu mix and turn targets.
BDC’s equipment-financing guide emphasizes the complete financing structure when comparing offers.
“Don’t focus only on interest rates”
For the equipment decision discussed here, compare the amount financed, payment schedule, collateral and remaining obligations alongside the quoted rate.
What private underwriters actually look for
- Operational case: Seats, turns per service, dish/rack throughput, hours/day. A one-page model (racks/hour × services/day × open days) is enough.
- Cash-flow coverage: 6–12 months of bank statements; stable deposits with room for the new payment matter more than last year’s net income.
- Vendor & warranty: Recognized brands, install scope, and parts/service coverage.
- Site readiness: Plumbing/electrical/HVAC notes, floor drains, and commissioning steps.
- Sponsor strength: Personal guarantees are standard for new corps; a co-guarantor or modest down payment can improve pricing.
If cash is tight while AR lags (catering/banquets), we can add Invoice Factoring to smooth receipts.
Typical terms, down payments, and covenants
- Term: 24–60 months (up to 72 for larger conveyor/flight-type packages)
- Down / first & last: 0–15% or 1–2 payments in advance (helps B/C/D files)
- Payments: Step-up for the first 2–4 months during training and SOP tuning
- Security: PPSA on financed assets; personal guarantees for private corporations
- Refi window: After 12–18 clean payments, revisit rate/term via Refinancing & Sale-Leaseback
Broker fast-track: from quote to clean in 7 steps
- Lock your bill of materials (machine, booster, water treatment, stainless, install).
- Pick a structure (FMV for lower payment/refresh; $10 residual if you’ll keep it; sale-leaseback if cash is tight).
- Package the file (application/IDs/void cheque, incorporation/ownership, last filed year + YTD interims, 6–12 months bank statements).
- Add a simple throughput model (racks/hr, services/day, labour savings vs. manual).
- Milestone funding (deposit → delivery → install → acceptance certificate).
- Step-up payments during the first weeks as staff dial in.
- Review at month 12–18 and reprice if performance is strong.
Case study: door-type to conveyor without cash strain (Ontario)
Situation. High-volume casual restaurant outgrew a door-type setup. New conveyor + booster + stainless + water softening totaled $74,000 installed. Cash was earmarked for patio season and staff.
Structure. 60-month FMV lease with progress-funding (deposit → install → acceptance), 3-month step-up, and bundled soft costs (plumbing/electrical, stainless). Small working-capital line approved in parallel for opening inventory.
Outcome. Go-live hit schedule; turn time improved and rewash rate dropped. After 14 on-time payments, we refinanced, trimming monthly cost ~8%.
Common pitfalls (and how to avoid them)
- Ignoring water quality. Skipping softening/filtration raises service calls and voids warranties. Bundle it up front.
- Under-scoping stainless. Landing/soiled tables and scrap management dictate real throughput—include them.
- Forgetting HVAC/condensate. Heat/steam handling affects guest comfort and inspector scores.
- Leaving soft costs out. Installation and training are cheaper inside the lease than via short-term cash squeezes.
Approval checklist (credit-analyst view)
- Application, IDs, void cheque
- Corporate docs (registration, ownership)
- Financials: Last filed year, YTD interims, 6–12 months bank statements
- Vendor quotes + SOW (plumbing/electrical/HVAC, commissioning, training)
- Throughput model and service schedule
- Insurance binder naming lender as loss payee
Send what you have—our team will stage the rest so underwriting doesn’t stall. For a quick payment preview, try the calculator.
Authoritative references
- Innovation, Science and Economic Development Canada — Canada Small Business Financing Program:
The Canada Small Business Financing Program makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.
Program eligibility, lender criteria, tax treatment, and product terms can change. Verify current official guidance and the final financing documents before making a decision.
FAQs
Can I include plumbing/electrical and stainless tables in the same lease?
Often yes. Private lenders frequently allow soft-cost bundling so projects don’t bog down mid-install.
What credit score is “good enough”?
Many lenders prefer 650+, but steady deposits and a credible plan can offset thinner credit—especially with modest down or first/last in advance.
Refurb vs. new—will lenders fund it?
Refurb/demo is financeable with documented condition and warranty. We’ll price both options side-by-side.
How fast can vendors be paid?
With a complete package, approvals are quick and vendors are paid on delivery/acceptance via milestone funding.
Can payments drop later?
Often. After 12–18 clean payments, we can explore refinancing to reduce rate or extend term.
If you want a no-pressure comparison of FMV vs. $10 buyout—or help deciding what to bundle now vs. phase later—feel free to contact our credit analysts. Estimate payments in minutes with our calculator or start a conversation here: Contact Us.