Trying to figure out how to distribute your budget if you are a new restaurant owner can be quite a challenge. Cleaning expenses, electric and gas bills, and monthly rent checks can amount to huge expenses in the long run. The toughest question that faces most managers is whether they should make cash purchase or finance restaurant equipment.
The concept of making a cash purchase is pretty simple. You pay the full amount up front and the equipment is yours. If it breaks down, it is up to you to repair it. If you decide to purchase second hand equipment in an effort to cut down on costs, chances are the equipment will come without a warranty or a warranty that is about to expire.
Another point to consider with new restaurant equipment is the fact that you cannot upgrade it to newer or current versions unless you purchase new equipment all together. If you go out of business, you may have to liquidate the equipment to recover from your losses and pay off creditors. The only good thing with purchasing new equipment is that once you have paid for it, it becomes yours with no additional expenses.
Leasing kitchen equipment on the other hand is a more practical approach that most of the restaurants like using. Even established ones prefer leasing than making cash purchases. The reasons are simple; leasing is cheaper, you get quality equipment with quality features and if you go out of business you simply return the equipment with no added expenses.
Shop around and get the best possible deal. The industry is currently filled with a number of equipment leasing companies out there. You have a lot of options to choose from.
You should be cautious about lease-to-own agreements. If you decide to pay the extra money, will you be able to allocate enough money to make a cash purchase? If not, you will have wasted your money.
Always analyze your lease contract. If you do not understand something or you are not sure about something, ask your contractor or simply get a lawyer to do it for you. This will prevent you from ending up with a bad lease where you have no choice but to wait for it to end.
All this talk about finding the right lease, finding a reliable supplier, etc. seems like a daunting task yet it is part of the hard work that every restaurant owner has to do. The good news is that this process can be made a lot easier if you follow the right channels.
At LeaseQ, finding the right lease for you is much easier and faster. In just two minutes, you can get a free quote from reliable financing companies. Worried about financing options? You can choose to take out a loan for leasing your restaurant equipment or you can make a $1 dollar payout at the end of your lease. The options are many to choose from.
To see if you qualify for restaurant equipment leasing, click here for a free quote.