Do you want to start your own restaurant business? Perhaps you dream of being a restaurant owner but the thought of setting up your own place can be intimidating. Indeed, the price of equipment alone (stoves, grills, coolers, tables, chairs, cash registers, etc) may demand a big start-up capital. But do you have other options?
Some people may consider purchasing used or second hand devices but for a restaurant business, buying second hand stoves, grillers and other kitchen appliance can be risky move since used devices can be prone to breakdowns. In the long run, the cost of repairs or replacement can be a major hassle.
A viable financing option for aspiring restaurateurs is equipment leasing. Instead of purchasing brand new or second-hand equipment, a start-up business owner can “lease” or rent all equipment needed to save money.
How Business Equipment Leasing Works
Business equipment leasing is an agreement between a lending firm and a business owner. The lending company provides the funds that will be used to acquire the equipment or devices. Some leasing companies have partnerships with business equipment vendors. You can also find equipment vendors that offer equipment lease financing at the same time.
Once an equipment lease has been approved, a restaurant owner can start the operations without having to submit an upfront payment. The great thing about leasing business equipment is that you can enjoy 100% financing because no down payment is required.
Different leasing terms are also available, depending on the lease provider. Restaurant owners have the option to choose a lease package that matches with their financial capability and needs.
Benefits of Restaurant Equipment Lease
What are the benefits of leasing restaurant equipment? Consider the following points:
No down payment required. All equipment leased- from cooking wares, kitchen appliances, to furnishing – can be obtained right away and paid in instalments. The payment mode can be made on a monthly, quarterly or annual basis, whichever is more convenient.
Tax benefits. As a restaurant owner, you may be eligible to claim tax deductions if you decide to return the leased equipment by the end of your lease contract. Be sure to inquire from a business attorney or a business accountant about your lease tax benefits.
Use only the best equipment. Having a small budget may force a restaurant owner to buy cheaper brands or used devices in an effort to cut back costs. This doesn’t need to the case in leasing business equipment. Through leasing, a restaurant owner can choose the best gadgets or kitchen devices without worrying about being short on the budget.
No to Obsolescence. Equipment can become outdated or obsolete as new and better models are introduced in the market. Investing on equipment purchases may limit your options. On the other hand, leasing gives you the choice to replace older models for newer once when you renew your lease contract.
Free up your cash flow. Leasing fees are considered as operational costs since you get to use the devices as you pay in instalments. There is no need to spend your entire budget on purchasing equipment so you can set it aside for emergencies or as back-up in managing your business.
Lai Castillo is an equipment lease financing broker that specializes in getting startup business equipment leasing.
Article from articlesbase.com
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