If you are considering starting a restaurant, it is going to require capital…lots of it. It can even run into several hundred thousand dollars, so it’s no joke. There are so many things to take care of and consider. You will definitely need restaurant equipment and depending on what kind of restaurant it is, you may require some special equipment as well.
You will need lots of money to invest in the equipment, but you could also lease the equipment. Many people lease so many things like houses and cars, so you could consider this. In fact, leasing restaurant equipment can offer some great benefits, so let’s take a look at some of these.
1. Less Expenses
One obvious benefit is the savings. By leasing, you will have less expenses with the restaurant equipment. When you are just starting, any savings will be crucial. With the money that you will save, you can spend it on other parts of the business where you can reap more rewards and make the business even better. When you buy the equipment, you need to fork out one lump sum payment. Leasing will allow you to pay affordable monthly payments.
Your payments are generally tax-deductible since leasing restaurant equipment is an operating expense. When you buy the equipment, you may be subjected to other taxes which can increase your expenditure. Leasing offers the advantage of having a tax-deductible deal.
3. Leasing Allows For Experimentation
Since yours will be a new business, you never know how things are going to go. You may decide that something isn’t working and therefore, you could return that piece of equipment. You can sort of experiment with ideas to see what works for the business and what doesn’t. If an idea isn’t going too well, just return the equipment after a short period of time. Why get stuck to an expensive piece of equipment which you don’t need after a short time?
4. Service & Maintenance
If the equipment is yours and it happens to break down, you will need to call for servicing and maintenance which you need to pay for. However, when you lease the equipment and you had a breakdown, just call them and they will repair it on-site. Remember, the equipment belongs to them, not you. They will also come by at regular intervals to check the equipment and do maintenance work if necessary, to keep the equipment performing at a high level. This gives you peace of mind, since you don’t have to worry about these costs, as the lending company will take care of it.
5. Lease To Own
There are some companies who will offer this feature where all your monthly payments count towards eventual ownership. This allows you to buy the equipment in an affordable way so that you don’t feel the pinch of one huge payment. Speak to the lending company. It also gives you the opportunity to see how good and reliable the equipment is, so when you do eventually own it, you know that you’ve got a dependable piece of equipment.
Apart from these benefits, some leasing companies will allow you to upgrade to a better version of the equipment. If you buy one, you are not going to buy another because a newer version came out, would you? It is harder to upgrade if you buy your own equipment. Leasing offers this flexibility that ownership cannot.