Restaurant Equipment Financing
Making your order right and on time are probably the highest priorities for your restaurant. Being able to do that requires good, working equipment. You want to make the best food possible for your patrons and for that reason you expect the best equipment. Buying that equipment does not come cheap. In fact, most restaurant owners prefer to finance their equipment.
Benefits of Restaurant Equipment Financing
Here are a couple of quick considerations for why you may want to finance or lease your Restaurant Equipment:
- Preserve Cash
- Flexibility of Keeping or Returning Equipment
- Avoid the Pitfalls of Technical Obsolescence
- Tax Benefits
- Improves Debt Ratios
- Fixed Rate and Payment Options
- 100% Financing
As always, and especially today, cash is king. If you can manage to finance your largest assets and save your cash for other working capital needs, your business will be able to stay ahead of the pack. The most important thing to keep in mind is that your restaurant equipment is an income producing asset, and it will pay for itself.
Types of Restaurant Equipment
Generally speaking, most resturant equipment is considered to be good collateral. Larger pieces of equipment like the ones mentioned below can be financed from 1 to 5 years:
- Dishwashers
- Meat Grinders
- Ovens/ Range
- Deep Fryers
- Refrigeration Equipment
- Restaurant Furniture
- POS (Point of Sale) Registers
- Fixtures
Deciding how to finance your equipment will come with a few decisions of its’ own. A couple of considerations for that thought is deciding between a capital lease and operating lease. A capital lease will offer you the ease of purchase at the end of the lease term and allow you to keep the depreciation. The operating lease can potentially get you to a lower monthly payment and allow you to improve your debt ratios. And if you can afford the payments, it may also be a good idea to choose a shorter financing term in order to avoid committing your business to a long term lease or loan. Which ever option you choose, you can rest easy that you will not pay a single dollar for that piece of equipment until it earns you a dollar.
