Are you interested in starting a restaurant? Do you already own an establishment but need more equipment to get by? If you answered yes to either of these questions you are in the same group as thousands of others. Owning a restaurant is not cheap. While there is a lot of money to be made, you will have to put out cash from time to time to ensure that you are offering the best food and experience to your customers as well as your workers.
When it comes time to get the right restaurant equipment you have two options: leasing or buying. Both of these options have pros and cons. Some restaurant owners only lease their equipment. Others swear by the benefits of buying. And of course, there are some who do a little bit of both.
There are many benefits of leasing restaurant equipment:
- You don’t have to put out as much money upfront
- Lower monthly payments
- You only have to keep the equipment until your lease term expires
- Once you trade in your old equipment you can upgrade to the latest and greatest that the industry has to offer
Would you rather take out a loan to purchase restaurant equipment?
There are benefits of doing so:
- Once the equipment is paid off you own it, free and clear
- You don’t have to worry about lease terms and conditions that are often times unclear
Before you sign on the dotted line, you should compare the benefits of restaurant equipment leasing to buying.
When it comes to buying equipment, you need to ask yourself this question: are you going to do so with cash or will you finance the purchase? The answer could help you make a more informed decision.
Every year, thousands upon thousands of new restaurants open in the United States. Along with this, those who are already in the business are looking to upgrade their equipment.
Don’t try to get by without the right equipment – this will only make things more difficult in an already competitive industry. Instead, compare the pros and cons of restaurant equipment leasing and buying. In the end, you will know which option is best for you and the goals you have set for your restaurant.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.