Are you going to open your own new restaurant business? If yes then you need to consider what suits you best a lease or a loan for your commercial kitchen. As you likely wouldn’t consider leasing a cooking range or a refrigerator for your own home kitchen, leasing for a commercial kitchen often makes the most sense.
When setting up a new kitchen for your restaurant, it’s very important to keep in mind that the equipments you choose will get a lot more depreciation than those of an average home kitchen.
Factoring the maintenance cost and the time it usually takes to fix the equipment, it’s sometimes good to go for the restaurant equipment leasing program rather than buying it. Restaurant equipment leasing can save you lots of start-up money and include better/longer warranties as compared to the restaurant equipment you buy completely.
How Restaurant Equipment Leasing Works
Certain parts of commercial restaurant equipment are better suited for leasing as compared to buying completely. Restaurant equipments such as commercial ovens, deep fryers, and mixing bowls are all good for leasing rather than buying for new equipment. The most important benefit of leased equipment is that it can save a considerable change when looking to open a new restaurant. Here are the primary steps to leasing commercial restaurant equipment.
Here’s The Process:
Shop Around For Rates On Lease Program
You may be astonished at the number of businesses who deal with restaurant equipment leasing. Along with the monthly charges, determine what type of services and offerings the lease offers. How regularly will the business service the equipment? Will they supply it and set it up.
Evaluate Leasing And Purchasing New And Used Equipment
These are the three of the most important options you’ve when purchasing restaurant equipment for your new restaurant. Count the total for the lease over the value of a new restaurant equipment piece. You may pay a lot more for the lease as compared to when you bought the new piece of equipment. Definitely purchasing the used restaurant equipment is generally the most economical way. But, you have to become aware of that the used equipment doesn’t typically include a guarantee and you may end up paying more for the maintenance sooner or later.
Read The Lease Term Carefully
Find out how long the lease term is for and what takes place when you need to terminate the lease early. Majority of the restaurants fail within their first three years of operation, therefore it is not a good idea to sign a 5 year lease term on a commercial oven.
Get Ready For A Credit Check
Leasing commercial restaurant equipment calls for the same credit assessments as leasing a new vehicle or applying for a bank loan. In case your credit is less than perfect, you may not be approved for a lease program or may need to pay a higher interest rate.
Benefits of Leasing:
Leasing Can Save You Cash
Leasing large restaurant equipments, such as a commercial steam table, will help you save your start up cash for other restaurant areas. Rather than paying $3,000 for steam table equipment, you may use the cash for first food order, or first payroll as well as for your marketing. Examine more about getting ready to open a new restaurant.
Some Of The Leased Equipments Are Free
A leased piece of equipment may be free (as in no monthly lease fee) in case you are already buying the business’ product, such as coffeemakers.
No Need To Pay For Repairs
If your leased restaurant equipment breaks or stops working, you don’t need to pay the repair cost.
Easier to Upgrade
When the lease on your commercial restaurant equipment is over, you can get a new model of the equipment if you pick out to renew the lease.