Leasing used commercial kitchen equipment comes with a number of benefits. Read on to find out which ones they are.
The sad fact about the restaurant industry is that most restaurants fail within the first two years. The risk of going out of business makes any new restaurant owner consider leasing used commercial kitchen equipment. So what really makes used commercial kitchen equipment financing the better option for upcoming restaurants?
Benefits Of Leasing Used Commercial Kitchen Equipment
The first and obvious benefit of used kitchen equipment is the fact that there is no immediate spending. Buying new equipment means using a significant portion of your capital to buy large equipment and machinery. In addition, there is a high risk of not getting Return On Investment (ROI) which might plunge you into debt.
Another benefit of used commercial equipment is the fact that you get on site assistance. Even though the last thing that you want to happen is your equipment breaking down in the middle of the job, sometimes it happens. The company that provides you with the equipment will ensure that they send to you personnel that will help repair your equipment the moment it breaks down. This rids you the worry of figuring out how you will find someone to fix your equipment.
You will not be responsible for the repair and maintenance costs. Since the equipment is not yours, you are not responsible for its maintenance; the company that provides you with it is responsible. Most second hand equipment does not come with a warranty so purchasing it would be taking a huge risk. However, if you lease it, you will have peace of mind knowing that if it breaks down, you will not bear the costs.
Which Items Are Suitable For Used Commercial Kitchen Equipment Leasing?
One of the second hand items that can be leased are fryers. Gas fryers are better than electric ones. Make sure that it comes with clear instructions on how to change the oil.
Ovens and gas ranges are also ideal second hand equipment you can finance. Gas ranges and ovens are more durable. They have a clear advantage over the electric ones because they do not take long to heat and are not made up of parts that are likely to break. Other equipment that you can finance include: freezers, bar fridges, and refrigerators.
Can you convince a restaurant equipment supplier to lease to you with bad credit? Find out more on leasing and financing restaurant equipment here.
You might be having cash flow issues and you need equipment to run your business but the most cost effective way of doing this is through finding a restaurant equipment supplier to lease to you. Suppliers usually do a credit check on you before even letting you sign a lease. If you have bad credit, getting a supplier to lease to you may be quite a challenge. However, you can still convince them to lease to you. Here’s how.
How To Convince A Restaurant Equipment Supplier To Lease To You With Bad Credit
You could request a trusted friend to co-sign the lease contract or ask them to lease on your behalf. Your friend should have a good credit history because the supplier will still do a credit check on them. The key here is to give the supplier the impression that they are leasing their equipment to someone who does not have a bad credit history.
If you have ever successfully leased with other companies, you can get positive references from them to assure your supplier that you are ready to pay the commitment. You should also ensure that your referee includes in their recommendation that you can take care of the equipment. Suppliers assume that people who have bad credit are reckless and do not take care of leased materials.
You can either allow your supplier to put a hold on your credit card for as long as the lease lasts or simply pay a large down payment on the equipment. This will convince the supplier that you are ready to commit to fulfilling the requirements of the lease even though you have bad credit rating.
Tips On Restaurant Equipment Supplier Leasing
The most important thing that you have to tackle before looking for a restaurant equipment supplier is to check your credit rating. There is no doubt that a good credit history will get you a lease but you should also be prepared if you know you have a bad credit rating.
If your application will not be declined, the supplier might decide to charge you higher rates. This is unacceptable since you are trying to cut back on costs. Getting someone with good credit history to cos-sign the lease with you will put you in a better position to negotiate better rates or come up with a payment plan that is more flexible.
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