Buying new equipment is expensive, especially when opening a new restaurant. Perhaps you have experienced sticker shock after replacing an item or purchasing a new one. If this has happened, you might be wondering if leasing restaurant equipment is better.
Restaurant equipment financing is a type of funding for small businesses that allows owners to get capital to buy equipment. The equipment acts as collateral, and the loan can be repaid.
Equipment financing is a way to secure financing without giving up collateral. Equipment financing, which is self-secured, will make an excellent choice for entrepreneurs and restaurant owners with poor credit.
Leasing commercial restaurant equipment has many benefits for sure business owners. These benefits are available to you if you decide this is the right option for your business.
Access to Equipment with Less Capital
When you lease equipment, it allows you to access all the equipment you need for your new business, even if it isn’t very much in cash.
Although you might afford to pay a monthly fee, it is not possible to afford a large lump sum. Leasing equipment is possible without having to have excellent credit. This can be beneficial for many business owners.
Leased Equipment Can Be Tax Deductible
Your lease payments may be deductible depending on how your business operates. Taxes are usually due when you purchase an item. But when you lease, taxes are paid monthly and not in one lump sum. This could reduce equipment’s overall cost. Leases don’t allow you to deduct tax for item depreciation.
Leasing is Better if You Don’t Need Equipment Long Term
Start-ups might be able to afford more light-duty equipment. Then you’ll know how many customers your business will have every day. The kit may be returned to you at any time during your lease term. You have many options at the end of the lease term. You need to ensure to read your lease agreement carefully.
Opportunity to Buy at Lease End
Many leasing companies offer a buyout option after the lease term. However, approval may be subject to your credit rating. This option is ideal for items you intend to keep for the lifetime of your business but can’t afford to purchase upfront.
You should weigh all options before making a decision about purchasing new equipment for your restaurant. Learn as much information as you can about equipment leasing “near me” to ensure that your company is making the right decision. Although equipment leasing can have its advantages and disadvantages, it will allow you to make the best choice for your business.
Noreast Capital offers many lease-to-own options that preserve capital and ensure success for your restaurant.
You can reach us at (410-268-5588) for all inquiries.