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The UK bakery market is one of the largest and most dynamic sectors within the food industry. Over the last 10 years Gable Asset Finance has supported hundreds of commercial and retail bakery operations — from high-street craft bakers through to large plant bakeries and foodservice suppliers. Whether you’re opening a new bakery, replacing old kit or expanding into wholesale supply, having the right funding in place helps you grow without draining working capital.
This page explains what bakery equipment financing and leasing is, why financing is often the smarter choice for bakery businesses, the finance options available in the UK and practical guidance on how to apply. We also outline the equipment and supplies we commonly fund, and how our specialist team delivers solutions that fit the needs of bakeries of all sizes.
Bakery equipment financing and leasing describes methods of funding the purchase (or hire) of machinery, fixtures and fittings used in bakery production and retail. Rather than paying the full cash price upfront, finance spreads the cost into manageable regular repayments — freeing up working capital for ingredients, staff, premises and marketing.
With purchase finance such as hire purchase (HP), the bakery takes ownership of the equipment at the end of the agreement (or sometimes immediately, depending on the contract). You pay an initial deposit (if required) followed by fixed monthly repayments until the balance is cleared.
Leasing allows you to use equipment for an agreed period while the lender retains ownership. At the end of the lease you can usually return the equipment, extend the lease, or in some cases buy it for a pre-agreed residual value. Leasing is often used where fast replacement cycles or tax and accounting considerations favour off-balance-sheet treatment (subject to accounting rules).
Almost any item used to run a bakery can be included: ovens, mixers, proving cabinets, refrigeration, slicers, work tables, sinks, display counters, point-of-sale hardware and specialist production lines. Finance can also cover supply, delivery and installation costs, plus accessory items and even the fit-out of shop space in some cases.
Financing bakery equipment offers a number of practical and strategic benefits. Below we highlight the most important reasons our clients choose finance rather than buying outright.
There is no single “best” solution — the right product depends on cashflow, balance sheet preferences, accounting treatment and whether you want eventual ownership. Below is a practical guide to the most widely used finance options in the UK bakery sector.
HP lets you pay for the equipment over an agreed term with fixed payments. Once the final payment is made (or an option to purchase is exercised), ownership transfers to your business. HP is straightforward and popular with bakeries that want to own assets outright.
A finance lease provides the equipment for most of its economic life. You effectively finance the cost but the leasing company remains the legal owner. Many bakeries use finance leases where they want long-term use and prefer rental-type payments, sometimes with a final nominal purchase option.
Operating leases are more like rental agreements where equipment can be returned at the end of the term. This is attractive for bakeries that need flexibility, expect rapid technology change or want to avoid ownership responsibilities for maintenance and disposal.
If you already own machinery, asset refinance (also called refinancing or refinancing an asset) can release capital locked up in equipment by refinancing existing assets into a loan facility — useful for expansion or refurbishment.
Traditional business loans secured on the equipment or against business assets. These can have varied terms and are useful when you prefer a simple loan structure rather than a lease or HP arrangement.
Many bakery equipment suppliers offer in-house or partner financing. These deals can be competitive and convenient because they are quoted alongside the price of the equipment, and often cover delivery and installation.
For bakeries with strong wholesale customers, invoice discounting or asset-based lending can help fund day-to-day needs while freeing capital to invest in equipment. This is complementary to equipment finance rather than a substitute in many cases.
We structure multi-asset and multi-site packages for new bakery openings, franchise rollouts and chain expansions. These packages can include staging, delivery scheduling and deferred payment starts to match opening dates.
Gable Asset Finance can finance a wide variety of bakery equipment, whether for production, retail display or back-of-house operations. Below is a comprehensive (but not exhaustive) list of items we regularly fund:
We fund these items for:
Opening a new bakery requires numerous small but essential items. Finance can cover these too — rolled into one affordable monthly payment — so you launch without upfront stress. Typical accessories and supplies we finance include:
Including accessories in the finance package reduces the need for multiple purchases and simplifies budgeting at launch.
Large equipment — ovens, spiral mixers, high-capacity proofers, industrial refrigeration — is often the most significant capital cost for a bakery. We provide tailored funding that recognises the long working life and productivity impacts of these assets. Our solutions can include:
We assess equipment life, expected residual values and your business plan to recommend the most cost-effective structure for long-life assets.
Gable Asset Finance are specialist funders to the UK baking sector. Our experience spans:
Because we’ve worked with hundreds of bakery projects, we understand the compliance, hygiene and energy considerations that are unique to the sector. Our team of experienced business advisers uses that knowledge to design funding that helps your bakery operate efficiently and profitably.
We make applying for bakery equipment finance straightforward. Below is a typical flow. Timescales vary with complexity, but our team focuses on clarity and speed so you can get equipment in place as planned.
Documentation typically required:
Understanding lender priorities increases the chance of a smooth approval. Typical assessment areas include:
Tip: Prepare a simple one-page summary of your planned equipment, expected output increases (e.g. more loaves per hour), and how the additional capacity will translate into revenue. This helps lenders see the business case quickly.
Yes — we routinely include delivery, installation and commissioning costs within a single finance package so you have one repayment, one agreement and a clear launch plan.
We can finance good quality, inspected second-hand equipment depending on age, condition and supplier provenance. Second-hand finance terms differ from new equipment, and a formal inspection or valuation may be required.
Accessories and smallwares required for opening or immediate operation can often be included — for example pans, tins, scales and decorating tools. Consumables (ingredients) are usually financed via separate working capital facilities.
Terms vary by product and asset life. Small equipment may be funded over 2–5 years, while large industrial ovens and plant equipment can be funded over longer terms. We always recommend matching the term to the useful economic life of the asset.
At lease end you will usually have options to return the equipment, extend the lease, or (where specified) purchase the asset for a pre-agreed residual. Options vary by contract; our advisers explain the implications of each route.
There can be. Certain finance products have accounting and tax effects that may offer cashflow or tax timing benefits (for example, capital allowances or operating cost treatment). You should discuss specifics with your accountant or tax advisor as rules and business circumstances differ.
Below are illustrative, anonymised scenarios based on our bakery funding experience. These are examples only and not representations of individual client outcomes.
A start-up craft bakery needed an oven, planetary mixer, refrigeration and display cabinets ahead of opening. They included pans and smallwares in a single finance package with a deferred start for the first payment aligned to the grand opening. This preserved working capital while providing the full fit-out in one transaction.
A medium-sized plant bakery invested in a new rotary oven and automated dough handling line to expand capacity. We arranged a long-term finance lease that matched the expected economic life of the equipment and included installation. The improved throughput reduced unit costs and paid for the repayments over time.
An established bakery replaced older mixers and installed energy-efficient refrigeration. By financing the upgrade, they avoided a large capital outlay and benefitted from lower energy bills and reduced downtime due to improved reliability.
We’re specialists who understand baking. Our team combines finance expertise with hands-on knowledge of bakery equipment, installation and retail operations. What sets us apart:
To speed up your application, gather the following before you apply:
If you’re unsure, we can help compile what’s needed — our advisers will provide a clear list once we review the requested funding.
Energy efficiency is increasingly important for bakeries. New ovens, heat recovery systems and efficient refrigeration significantly reduce energy bills and often justify finance through savings. Where appropriate, we can discuss finance structures that reflect the energy savings and shorter payback periods of efficient equipment.
Bakeries operate under strict food safety and health & safety regulations. Funded equipment should meet relevant standards and be installed by qualified engineers. We work with suppliers and installers familiar with sector compliance to help avoid delays and ensure equipment is commissioned correctly.
If you
The UK Bakery market is one largest markets in the food industry. Over the last 10 years we have funded hundreds of commercial and retail bakery operations.
If you are looking to finance bakery equipment we are experts in this field. We can finance the supply and installation a wide range of commercial bakery equipment to the private and public sector throughout the UK.
We are funders to the UK Baking sector including:
Funding for Accessories Needed to Open a New Bakery
We have a team of highly experienced business advisors, extensive knowledge of working with bakery businesses of sizes can deliver positive solutions to your business equipment or finance needs.
Finance for supplies Needed to Start a Bakery
Finance for Large Equipment required to operate a Bakery?