Buying restaurant equipment can be costly, particularly when you are opening a new restaurant. In case you have ever had shocked from replacing old equipment or buying a new one, you may have speculated if it would be better to lease restaurant equipment. This article will give you an idea about the benefits and drawbacks of restaurant equipment leasing to help you determine if it is the appropriate choice for your small business.
When furnishing a new restaurant kitchen, it is way essential to remember the equipment you select will get a lot more wear and tear as compared to those of an average home-based kitchen. Factoring the cost of repairs and the time it takes repair something, it is sometimes good to lease equipment as opposed to buying it. Leasing can prevent plenty of start-up costs and come with longer guarantees as compared to the equipment you purchase outright.
Look Out For Quotes On Leasing
You may be astounded at the number of firms who offer restaurant equipment leasing. Along with the monthly fee, find out what services the lease offers. How frequently will the lease providing firm service the equipment.
Compare Leasing And Buying
These are the three major options you have when buying equipment for a new restaurant business. Count the total for the lease over the cost of new equipment. You can pay a lot more for a lease than purchasing the new equipment. And of course buying used restaurant equipment is commonly the inexpensive way. But, you have to consider that used restaurant equipment doesn’t commonly include a warranty and you may end up paying more for maintenance ultimately.
Examine The Terms On Lease
Find out how long the lease is for and what happens if you need to terminate the lease early. A majority of restaurants fail within three years of their operations; therefore signing a 5-year lease for restaurant equipment may not be the good idea.
Get Ready For A Credit Check
Restaurant equipment leasing requires the same credit checks as leasing a new car or applying for a loan from a bank. In case your credit score is less than perfect, you may not be approved for a lease or possibly may have to pay a higher interest rate.
Benefits of Restaurant Equipment Leasing
Saves You Cash
Leasing large equipment will help you to save cash for other expenses of your restaurant business. Rather than paying $3,000 for a dishwasher, you can use that money for your first food order, or your first payroll.
Some Leased Equipment Is Free
Some of the leased equipment can be free if you are buying the equipment from the company, together with coffeemakers or dishwashing chemicals.
No Paying For Repairs
If the restaurant equipment breaks, you don’t need to pay for the repairs.
Easier To Upgrade
When the lease in your restaurant equipment is over, you can get a new model of equipment if you select to renew.
What To Consider Before Applying For Leasing
Of course, with any lease program, you don’t own of the equipment and you will have a weekly or monthly bill. You will also need to sign an agreement, which you need to review very cautiously, to make sure you understand it and fulfill with the terms. In case your restaurant closes before the lease is over, you may be accountable for the rest of the payments for the lease term.
The kitchen layout can also be essential in identifying what types of equipment you will need. Restaurant kitchens are oftentimes heaving into small spaces, and it is way important to count each square inch. You could have dreams of commercial cooking range with grill; however the reality may be something much smaller.