Opening and running a restaurant takes time, hard work, and patience. Being a restauranteur also requires a significant investment of money. Perhaps one of the most expensive aspects of running a commercial kitchen is the equipment. When you are looking to start or expand your restaurant, leasing equipment can be a great way to save money.
When you need to purchase a commercial refrigerator, freezer, oven, or other equipment, you might find that leasing is the more economical option. Leasing allows you to get the equipment you need without having to pay for it upfront. This can be a great way to help the equipment pay for itself. If you’re thinking about opening a restaurant, leasing your equipment could be a great solution. Keep reading to learn about the benefits of leasing restaurant equipment.
Lower Operating Costs
When a business is looking to purchase new restaurant equipment, there are several factors to consider. One of the most important is the cost of the equipment. There are two main ways to pay for this equipment: buying or leasing. When it comes to operating costs, leasing restaurant equipment is the better option.
There are several reasons why leasing restaurant equipment can lead to lower operating costs. First, when you lease equipment, you don’t have to worry about depreciation costs. This is because the leasing company assumes these costs. When you buy equipment, you have to account for depreciation in your budget, which can be a significant expense over time.
Additionally, when you lease restaurant equipment, you typically don’t have to make a large up-front payment like you do when you buy it. This means that you can spread out the cost of purchasing new equipment over time, making it more affordable and manageable for your business’ budget.
Also, when you lease restaurant equipment, it’s often easier to upgrade or replace that equipment as needed. This is because most leasing companies offer upgrade options as part of their contracts. If your old oven, stove, or refrigerator breaks down and needs to be replaced, upgrading may be an option available to you through your lease agreement. Buying new restaurant equipment can be challenging and expensive if your old one suddenly dies.
Lastly, leasing restaurant equipment usually comes with service and maintenance agreements included in the contract. This means that if something goes wrong with your leased machines, repairs will likely be covered under the terms of your agreement.
Flexible Payment Plans
As discussed, leasing restaurant equipment instead of buying can provide businesses with flexible payment plans. As a result, leased equipment can offer lower monthly payments and tax deductions. Flexible payment plans allow businesses to make smaller monthly payments that can be spread out over a longer period of time. This allows businesses to have more cash flow available to them each month. Lower monthly payments also allow businesses to save money in the long run.
Additionally, leasing restaurant equipment can provide businesses with valuable tax deductions. The IRS allows restaurant owners certain deductions related to the cost of the leased equipment from their taxable income. This can save business owners a significant amount of money on their yearly taxes.
Additionally, when you lease restaurant equipment, you are essentially allowing the equipment to pay for itself. As your restaurant generates a profit, the equipment is bringing in the money to pay the monthly lease payment. If you were to buy the equipment upfront, you would be in the hole until it was paid off. With leasing, however, you can pay as you go. In general, leasing restaurant equipment is a great way for businesses to save money and have more flexibility with their payments.
Overall, leasing restaurant equipment is a more financially beneficial option than buying. When you lease equipment, you are able to spread the cost of the equipment over the course of the lease, which makes it more affordable. With some time and consideration, you can find a great lease deal on all of your commercial kitchen equipment.