Why should you get a restaurant equipment rental for your new place of business?
A restaurant is a very high risk, high reward kind of business simply because of the massive amounts of money that are involved in the company, from the money earned by the restaurant overall to the money that goes into running the restaurant.
Any business owner who has experience with owning a restaurant knows that there are so many factors in running the place, from wait staff and kitchen to equipment and building presentation, so every detail is critical.
Anything you do can either help you gain money, cut expenses, or add to expenses, so focusing effort into upping intake and lowering expenses is a priority for new restaurant owners. One such method of reducing expenses is through renting equipment instead of purchasing it.
Many business owners think that renting is a bad idea in general, buy the equipment, and then end up dealing with loans or losing a larger percentage of their money because they put their funds into purchasing equipment they didn’t need to purchase.
Fact of the matter is, a good restaurant equipment rental is one of the best ways to get your company in good shape, cut expenses, and get you better equipment than you could’ve bought.
Why is Buying not Always the Best Move?
The same reason business owners choose to buy equipment is the reason that buying it can be such a bad idea. Of course, buying equipment does give you the advantage of being able to claim the hardware as a business asset, giving you more funding to purchase the equipment.
But many business owners don’t want to rent and they buy because they want to own the equipment; they don’t like the idea of feeling owed to someone else and they want the hardware they use for their company to be completely and totally theirs. This is understandable and works well if the equipment you purchase acts more like an asset and less like a liability in the long run, but most equipment doesn’t.
The vast majority of equipment will either break down and require just as much money to repair as it is to buy again or become outdated technology within the next few years, meaning the equipment you wanted to be yours is now yours, for better or for worse.
The flip side to this is that the equipment that lasts a long time and is not going to be topped anytime soon is very expensive equipment like ovens or dishwashers, and paying for this can be challenging for start up businesses. You may even have to resort to a bank loan, which is essentially how a lease works, except a lease doesn’t have interest and offers you other advantages.
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What are the Advantages to a Restaurant Equipment Rental?
With a restaurant, it’s a priority that you be as well-stocked with all of the hardware you need as possible, and that’s the biggest downside to buying- you can only buy so much hardware with so much money. That’s why leasing is so great, and why the vast majority of equipments at least lease some of their equipment.
With a lease, you pay a low monthly rate for a pre-determined period of time to get whatever equipment you may need; that way, you get all of the ovens, microwaves, dishwashing units, computers, and other equipment that you may need.
Leases offer you advantages in the sense that, along with the restaurant equipment rental at a low price, you also get options for upgrading equipment, tax deductibles to put more money into your pocket, and you even get to choose whether you want to buy the equipment or not at the end of the lease.
Leases are set up so you can pay a low rate, use the equipment for however long you need it, and after your business has gotten off the ground and you’re making a profit, you can choose to continue your lease, buy the hardware, or go buy different equipment. However, like any other system, there are bad rentals you can get, and knowing what to look for is very important.
How can I get the Best Restaurant Equipment Rental Possible?
Avoiding bad leases is all about knowing what you want; if you know what you hope to get out of a lease, you can find the best lease possible. You need to pose some very important questions to yourself, like what kind of upgrade deals am I hoping to get?
How much does this hardware normally cost, and how much am I willing to pay for a rate? How long will I actually need this equipment?
As crazy as it seems, many business owners ignore these and just go headfirst into a lease, paying too much for equipment they don’t need after a certain period of time, and then paying a cancellation fee just to get out of the contract. A lease is like any other contract, and it requires you being smart and knowing what you want for a restaurant equipment rental.
Making sure you’re paying a reasonable price for equipment you will be using during the entire period of the contract is a necessity. To learn more about how you can get a good restaurant equipment rental, click here.