Quick answer: Victoria restaurant owners: Compare leasing vs. buying kitchen equipment for your next upgrade. Save cash while growing.
Financing options to compare
| Option | Best suited for | Repayment structure | What to compare |
|---|---|---|---|
| Equipment loan | Businesses planning to own the asset | Fixed scheduled payments | Down payment, term, fees, lien, prepayment |
| Equipment lease | Businesses prioritizing payment flexibility | Scheduled lease payments | End-of-term option, residual, fees, buyout |
| Business line of credit | Smaller recurring purchases or deposits | Revolving balance | Draw limits, interest, renewal, security |
Terms, eligibility and costs vary by lender and borrower profile. Compare the full financing agreement rather than relying on a single payment or rate.
Victoria’s hospitality scene is thriving—with new restaurants, cafés, food trucks, and boutique eateries opening regularly across the city and surrounding areas.
Whether you're expanding to a second location in Cook Street Village, launching a new concept in downtown Victoria, or simply replacing aging back-of-house gear, one question always comes up:
“Should I lease or buy my new kitchen equipment?”
With rising costs for commercial ovens, walk-in coolers, dishwashers, and even point-of-sale systems, choosing the right financing structure can make or break your margins.
This guide breaks down the pros, cons, and cash flow differences between leasing and buying your next round of equipment.
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 Kind of Equipment Can Be Financed or Leased?
At Mehmi, we help Victoria-based foodservice businesses finance:
- Commercial ovens, stoves, and fryers
- Refrigeration units and freezers
- Dishwashers and glasswashers
- Ventilation and fire suppression systems
- POS systems, prep tables, and display cases
- Smallwares bundles and build-out equipment
✅ New and used equipment eligible
✅ Financing available for private sales and full kitchen packages
Option 1: Buying Equipment with a Loan
If you choose to buy outright with a business equipment loan, you:
- Own the asset once the loan is repaid
- Can claim depreciation (Capital Cost Allowance)
- Pay off over 2–7 years with fixed payments
- May need a down payment (typically 10%–25%)
- Can bundle install, delivery, and warranties
Best for:
Long-term ownership, equipment that lasts 7+ years, or resaleable assets (e.g. walk-in coolers, fryers)
Option 2: Leasing Restaurant Equipment
Leasing gives you access to equipment without upfront ownership. This means:
- Lower monthly payments
- Payments may be 100% deductible as an expense
- Ability to upgrade or swap equipment more easily
- End-of-term options: buy, renew, or return
- Great for rapidly growing or seasonal businesses
Popular lease types:
- Operating Lease – return at end (true lease)
- Finance Lease ($1 Buyout) – own it after lease ends
Explore: Equipment Leasing & Loans
Leasing vs. Buying: Side-by-Side in Real Numbers
| Scenario | Buy (Loan) | Lease |
|---|---|---|
| Walk-in cooler & prep station ($28,000) | $28K loan, 60 months, $610/mo | $515/mo lease, 60 months, FMV buyout |
| Tax benefits | CCA depreciation + interest deduction | Monthly lease fully deductible |
| Upgrades | Sell or trade manually | Return/swap at lease end |
| Cash required upfront | 10–25% down | $0–first month only |
Case Study: Café Expansion in Victoria’s Inner Harbour
Business: Established espresso café adding second location near Johnson Street
Need: Finance $45K in kitchen gear + espresso machines + cold storage
Challenge: Wanted to preserve working capital for patio buildout
Solution:
- Structured a 60-month lease with $1 buyout
- Included installation and insurance in the lease
- First payment deferred 60 days for soft opening buffer
Result: Smooth launch, kept $10K+ in hand, reached profitability in month 4
When Leasing Wins
✅ You want low upfront costs
✅ You’re expanding or renovating quickly
✅ You plan to upgrade often
✅ You want simplified tax treatment
When Buying Wins
✅ You plan to keep equipment for 7+ years
✅ You want to build equity in fixed assets
✅ You have a clear idea of your long-term needs
✅ You prefer to avoid lease-end decisions or balloon payments
Final Word: Don’t Let Equipment Costs Delay Your Vision
Victoria’s food scene is full of opportunity—but only if your kitchen can deliver.
Whether you’re launching your first venue or upgrading an iconic one, Mehmi helps restaurants in BC make smart equipment decisions that match their growth goals and cash flow reality.
Need help deciding between leasing or buying your next kitchen upgrade?
Talk to a credit analyst or use our calculator to compare monthly payment options today.