If you want to save your restaurant thousands and even millions of dollars on equipment costs, then you should consider leasing. Here are some of the questions that you should ask restaurant equipment leasing companies.
If you are starting a restaurant, or you have established one, opting to lease instead of purchasing can make a very big difference when it comes to balance sheets and budgets. Leasing restaurant equipment that needs to be replaced every couple of years will make it possible for your restaurant to upgrade to the latest version without having to incur high costs. Make sure you ask restaurant equipment companies these questions before you decide which one to choose.
Questions To Ask Restaurant Equipment Leasing Companies
The first question that you should ask restaurant equipment leasing companies is if they have accreditation and government licensing. You should check with the Better Business Bureau just to make sure that they do not have any complaints filed against them. Furthermore, it will give you peace of mind knowing that you are working with a legitimate company that is fully licensed to operate in your state.
Ask them if they offer buy out leases. If you want restaurant equipment that you won’t need to replace for a couple of years, a buyout lease is the best option for you. With a buyout lease, you have the option of purchasing the equipment at fair market value or at $1. Use this approach only for restaurant equipment you are sure won’t need to be upgraded on a regular basis. The structure of your lease should allow you to pay for the equipment over a stretch of several years and eventually buy the equipment at the end of the lease.
Ask your restaurant equipment leasing company if they are willing to negotiate the leasing prices with you. There should always be room for negotiation. If you find a leasing company is too frigid, then take your business elsewhere. If you have a good credit score, you can use that to negotiate a better rate. Alternatively, you can reduce costs by negotiating for a longer-term lease or be willing to downgrade your equipment preferences a little
What kind of support do they offer they offer their clients? Good restaurant equipment leasing companies should be able to consult with potential lessees and help them choose the appropriate equipment for their restaurants. If a leasing company takes your order and slaps you with a lease, then you should try your luck elsewhere.
Ask your leasing company how familiar they are with leasing restaurant equipment. When you walk into a bank and request for a business loan, they will not care what you buy with their money. With restaurant equipment leasing companies, you may want to choose the one that is most familiar with the kind of equipment that you want. For instance, you cannot go to a company that deals in leasing trucks and demand them to lease to you restaurant equipment. They are likely to know more about leasing trucks than they are about leasing restaurant equipment. This sort of expertise is what will help you choose equipment that is suitable for your restaurant.
Red Flags You Should Never Ignore About Restaurant Equipment Leasing Companies
You should never ignore some red flags when you are looking to lease your restaurant equipment. If a leasing company offers to give you a lease without asking for any information regarding your restaurant, this is a warning sign. There isn’t an equipment leasing company out there that would be willing to lease out to a restaurant without even asking for basic financial information.
Another red flag is when the leasing company asks you to make a down payment even before you sign the lease. Chances are you won’t get your equipment once you make payments before the company confirms they have approved your lease.
Restaurant equipment companies that are vague about their details and giving you information should make you suspicious. Legitimate equipment leasing companies usually have no problem answering their clients’ questions. You can find legitimate financing companies at LeaseQ, the leading source of hundreds of leasing finance companies. You can get a quote in less than two minutes from a real lender. What’s more is that they have professionals online who are willing to help you with any issue that you may have.
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