Some restaurant equipments are good for leasing as compared to buying outright. Utensils like commercial ice makers, coffee makers and dishwashers are all perfect for leasing rather than buying new. A major advantage of restaurant equipment leasing is that it can save you a lot of money when starting a new restaurant business.
Here I want to include some basic steps involved in leasing commercial restaurant equipment.
What Suits You Best Leasing Or Buying Of New And Used Equipment
You need to evaluate what suits you best leasing or buying of new and used restaurant equipment. Calculate the total for the lease over the cost of new restaurant equipment. You may pay a lot more for a lease than purchasing new equipment. And obviously purchasing used restaurant equipment is normally the inexpensive way. But, you also need to know that the used equipment doesn’t normally come with a guarantee and you may need to pay more for the maintenance in the end.
Look Around To Get Best Quotes On Restaurant Equipment Lease
You will be startled by the number of firms who are dealing with the restaurant equipment leasing. In conjunction with the monthly fee, find out what type of services the lease provides. How frequently the firm will service the equipment.
Read The Terms Of Restaurant Equipment Lease
Discover how long the lease term is and what situations you can experience if you need to conclude it before time. Majority of restaurant businesses fail within their first 3 years of operations, therefore signing a 5 year lease on kitchen equipment may not be a good idea.
Get Ready For A Credit Check
The restaurant equipment leasing requires the same credit evaluation as leasing a new automobile or applying for a loan from a bank. If you have less than perfect credit, which is the situation that everyone is experiencing at present, you may not be approved for a lease or you may have to pay a higher interest rate.
Things To Know Before Leasing Restaurant Equipment
Obviously, with any lease agreement, you don’t possess the equipment and you will have a weekly or monthly bill. You also will need to sign an agreement that you have to evaluate very cautiously, to make certain that you understand it and consent to the fine print. In case your restaurant closes before the lease term is up, you may be accountable for the rest of the payments for the term of the lease.
Your kitchen layout can also be important in deciding what types of equipment you will require. Commercial restaurant kitchens are usually crowded into small spaces, and it is way important to make every square inch count.
Some Equipments Are Best Fit For A Lease
There are some specific types of restaurant equipment that are best fit for leasing due to their short lifetime and they wouldn’t be really worth the funding to purchase new.
These equipments include:
- Ice Machines
There are some different types of items that are deemed ideal for leasing include staff uniforms, table linens, floor mats and dishrags. These little items get dirty really quickly and outsourcing their maintenance and repair to another company may be cheaper as compared to paying your own staff to clean them.
BENEFITS OF RESTAURANT EQUIPMENT LEASING
Leasing Saves You Money
Leasing large commercial equipments, such as a commercial coffeemaker, will help you save your start up cash for other areas of business. Rather than paying a hefty amount for a coffeemaker, you can use that money to pay your first payroll and also for your restaurant business marketing budget.
Some Leased Equipment is Free
Leased equipment may be free as there is no monthly fee involved with it when you are already purchasing the business’ product, for instance coffeemakers or dishwashing chemicals.
No Repair Or Maintenance Cost
If the equipment breaks or stop working, you don’t need to pay for the repairs or maintenance cost. The leasing firm responsible for all the maintenance work.
Easier To Upgrade
While the lease term on your commercial restaurant equipment is over, you can get a new or updated version of the equipment if you decide to renew the lease agreement. Additionally, you can purchase the equipment at the end of lease term as well.
Access To Equipment With Less Capital
With restaurant equipment leasing program, you can get the required equipment and get a new business up and running, even when you don’t have enough cash to run your business. You definitely can afford to pay a monthly payment, but not a large lump sum at the end of the term. Additionally you don’t need to have a good credit when leasing restaurant equipment, which can definitely be a plus to many small business owners.
Following these tips you can get much more of benefits when leasing equipment for your restaurant business. The abovementioned tips can make the whole process of equipment leasing easy for you. Merchant Advisors, a leading lending firm in the US provides you with more benefits than you can get from anyone else.