New Commercial Oven For Bakery Cafe


  • Directors being property owners is a key criteria in asset finance deals requiring no deposit and income documentation
  • A Covid impact management plan was submitted in the loan application; the plan detailed how the business would pivot its business model to ensure a sustainable revenue stream during the pandemic
  • A brand new asset with a useful life much longer than the loan term was a major risk mitigating factor to the lender.


  • The owners of a bagel bakery cafe in the Eastern Suburbs wanted to pivot their business model due to the first Sydney Covid lockdown (March 2020)
  • Before Covid, they were a bustling cafe which earned income from the dine-in trade. As a result of the lockdown, trading activity was being restricted to takeaway only
  • Since they could not serve dine in customers anymore, they negotiated new supply contracts with major retail grocery chains
  • This was at the peak in panic buying of staple goods in grocery stores that was evident at the time
  • The bakery cafe did have a commercial oven but its size would not be able to meet the requirements of supplying major grocery stores. A larger commercial oven was urgently needed.


Given this was during the first Covid lockdowns in NSW, lenders were very cautious at the time.

The bakery cafe’s main business activity of serving dine-in customers was no longer possible so the historical financial performance was not sufficient to justify servicing.

The owners did have cash reserves but they preferred to hold onto as much of it as possible due to the extreme uncertainty brought about by the pandemic. Therefore, no deposit was available.

A commercial oven was needed urgently in order to meet the new supply agreements otherwise the business revenue would cease.


We presented a Covid management plan and how the bakery cafe would pivot its business from serving dine in customers to supplying through to retail grocery chains; however at the core they would be essentially still be conducting the same operations of producing and selling bagels, just on a bigger scale.

The outcome was a facility to finance the full purchase price with no deposit or income documentation required. This was possible because the Directors were property owners and the business had been operating for 5 years. It also helped that the brand new commercial oven had a very long useful life of 15 years. Compared to a loan term of 5 years, the lender’s resale risk in a default situation was mitigated.