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.
As both a financing partner and a seller of select commercial assets, Mehmi Financial Group structures dishroom projects across Canada with staged vendor payments, soft-cost bundling, and practical covenants—often with decisions in 24–48 hours. 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.
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.
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.
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