You've got a new business with great food, a great location, and an amazing staff. But if you're struggling to keep up with the demand for your restaurant - you might be considering leasing restaurant equipment.
Lease To Own Restaurant Equipment
If equipment finance is needed in order to improve efficiency, reduce labor costs, handle a larger number of patrons, or some other reason and cash flow or a working capital loan funds are not available, the business owner might consider leasing to own the restaurant equipment. Leasing provides an option for obtaining the item or items for immediate use when money is not available for purchasing it. A detailed contract specifying the responsibility for care and maintenance, right to purchase at a later date, and legal ownership should be prepared and signed by all parties involved in the lease agreement.
Some advantages of leasing equipment finance:
- Restaurant Equipment can be obtained though there are not enough funds for purchasing the equipment.
- Rates are known, which facilitates budgeting.
- Equipment might be replaced with newer models as design changes take place.
- Leasing costs can be a tax deduction as an expenditure before taxes are calculated.
Don't let your bad credit keep you from getting that new equipment for your kitchen. You know who's probably wondering why they can still get a loan even if it has been awhile since their last one? All of those people with good and sometimes excellent scores! These lenders want to make sure every business owner across the board is given an opportunity for success, which means specializing in all sorts of different categories like retail or food service financing as well as offering rates starting at 3%.
No matter what your financial situation may be, the self-secured nature of equipment financing makes it ideal for less-qualified business owners. This means that as soon as you purchase a piece or pieces from our inventory with this type of loan in place - lenders will take on far less risk than if they were providing funds directly to businesses without collateral first! As such we can guarantee final approval rates because there's guaranteed safety up front before anything else happens between us and them so how could anyone say no?
Did you know that you retain ownership of the equipment at the end of the lease? Most financing and lease company have a simple $1 buyout of the restaurant equipment at the end of the lease. The real disadvantages of leasing equipment is that the interest on payments for the equipment increases the overall cost of the equipment if it were purchased.
Restaurant Equipment Lease Conclusion
A financial lease can be a good option for restaurants that need quick access to funds, and it's the perfect solution if your landlord, friends, or family won't lend you money or want to protect your credit score by not maxing out a credit card. A lessee under this type of contract agrees to make monthly payments over time equal in total amount or less than what was paid out on commercial kitchen equipment acquisition meaning there are no long term debt obligations!
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