Can you categorize restaurant equipment lease financing as the best option? There are currently many forms of financing restaurant equipment but will leasing work for you?
Currently, more and more people are opting to get restaurant equipment lease financing as the best option as compared to getting a loan to start up a restaurant. The flexibility and urgency of having a lease finance processed has attracted most entrepreneurs in the restaurant business. It is not hard to tell why if you look at the different benefits that come with applying for equipment lease financing for your restaurant.
Restaurant Equipment Lease Financing As The Best Option?
Unlike applying for a loan, leasing only requires you to make one or two payments upfront. However, these payments are applied to your future payments. Opting for a lease also helps cover for other costs like shipping, installation costs as well as maintenance. This of course will depend on the terms of your lease. These added costs are added to the total amount which is then spread out evenly over the term of the lease.
Additionally, monthly payments on operating leases are typically viewed as operating expenses. As such, you get to enjoy significant tax benefits. In order to take even better advantage of this situation, it is advisable that you consult with your financial advisor so as to determine the most tax-beneficial lease.
When looking into restaurant equipment lease financing as the best option, you can conveniently apply for it online using LeaseQ. This is because in this scenario, you get free and instant quotes and most lease applications are processed within 24 hours. This means that you can get the equipment quicker and start operations in a shorter time frame. Furthermore, given the rate at which kitchenware and other restaurant equipments are revolutionizing, the restaurant owners risk having the equipment becoming obsolete. Through leasing you can upgrade your equipment to better enable you serve your customers and also stay relevant in the food industry. Depending on the flexibility of your finances you can apply for different types of leases or have one that is tailor made to suit your needs.
Types Of Leases.
There are several types of leases that you could use to help get your restaurant off the ground and running. You can opt for the ‘step-up’ leases. These are leases that start off with low monthly payments that increase overtime. This ensures that you pay as your business improves and picks up. You can also go for the ‘skip’ leases. These are restricted payments to certain months of the year. As such you are able to plan before time and make payments without straining your business’s revenue. There are also the ‘deferred’ type leases. These allow a significant grace period before you can start making payments. It allows you to save up and understand the performance of your business before you can start making payments.
The best thing about restaurant equipment lease financing as the best option is that in the event that you are aware that you will benefit from retaining the equipment or you would like to continue with the operation you can opt for a buy out at the end of the lease agreement. The best option is the $1 buy-out especially if you are certain you will keep the equipment from the beginning. Other buy-out options like the fair market value buy-out allow you to buy the equipment at the end of the lease at the price in that period or continue with the lease. However, with this option monthly payments are lower but at the end the cost is higher.
Remember that the lease options can be further customized to better suit your needs. The general terms may apply but the details can be twitched to better allow you to make a success or to reduce strain in your business. Therefore you should not hesitate to talk to your financier to get a deal that will work for both parties. The better part is that the rigid nature of a lease agreement obligation eliminates the uncertainty about the future cost of the equipment. As such, through making the monthly payments, the owner is also able to be more accurate and also be able to plan better for the success of the business.
After considering the restaurant equipment lease financing as the best option over the more tedious and highly rigid loan option or the even more cumbersome option of having to buy the equipment, leasing seemingly seems to be the best option for start up restaurants as well as established ones wishing to franchise.
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