If you’re an entrepreneur, restaurant or catering service owner who’s looking to get equipment for your business, you know that it can be tough to find the right financing solution. Traditional options may not have the right loan solutions for your business, or have an unaffordable impact on your restaurant’s cash flow and accounting management. That’s where leasing companies come in. They may offer a variety of customized options to help you get the help you need, to open your restaurant or simply upgrade your equipment.
Do you need restaurant equipment leasing?
What is restaurant equipment leasing?
With a lease, you can use kitchen, or other catering or restaurant equipment, for an agreed-upon period of time, during which you’ll make monthly payments to the leasing company. At the end of the lease term, unless you and the company agree upon renewal terms or a buyout, the equipment must be returned to its original owner, the company.
Equipment lease can be a great way to get high-quality new equipment, or used, without having to pay the full purchase price upfront. It can also help you keep your monthly expenses low, which is important when you’re just starting out. Just be sure to read the lease contract carefully, so you understand all the terms and conditions before signing.
What kind of restaurant, or catering equipment can you lease?
You can choose from a variety of equipment options. Here are some examples.
Restaurant ovens, grills and griddles
Ovens, grills and griddles are essential pieces of equipment in any restaurant kitchen. You can finance any type of oven: standard ovens (radiant), conveyor, convection or steam ovens, and commercial restaurant ranges. Similarly, you can also lease commercial deep fryers.
Ventilation
Without a kitchen exhaust hood, fumes and other air contaminants created by cooking equipment would quickly build up and pollute the entire kitchen. In fact, Canada has restaurant ventilation regulations that require commercial kitchens to use proper venting systems in order to protect both customers and employees.
Food processors
Commercial food processors include equipment made to chop, slice, shred, grind, and purée almost any dish.
Commercial freezers
In a restaurant, the storage and preservation of food requires professional equipment such as industrial refrigerators, in addition to commercial storage racks and shelving.
Washing Equipment
The washing of kitchen utensils and cutlery is a basic aspect of an optimized workflow in a restaurant. It requires professional quality equipment, so you can also include it in your leasing application.
Restaurant, or catering equipment financing: is it better to buy or lease?
There is no definitive answer to whether it’s better to buy or lease the equipment you need for your restaurant. Much depends on the equipment purchase costs, your cash flow and accounting management criteria, or the equipment finance terms.
Many restaurants and catering services opt to lease equipment because it allows them to avoid a large upfront cost. It provides some flexibility in terms of upgrading equipment as technology advances.
Before considering whether to buy or lease equipment, make sure to weigh all the pros and cons carefully. In Finco FG we’re here to help you to offer all the information you need on the leasing side.
Leasing: how does this type of restaurant and kitchen equipment financing work?
Leasing allows you to use the equipment you need for an agreed-upon period of time, during which you’ll make monthly payments to the leasing company. At the end of the lease term, unless you and the company agree upon renewal terms or a buyout, the equipment must be returned to the company.
Advantages of leasing restaurant equipment
One of the advantages of leasing restaurant equipment is that it can help you maintain a good credit rating. This can be important if you need to take out a loan for another purpose in the future.
Another advantage is that it can help you budget for your equipment costs. When you lease, you know exactly how much you will need to pay each month for your equipment. This can make it easier to manage your finances and avoid unexpected expenses.
Finally, as stated before, leasing restaurant equipment can give you the flexibility to upgrade your equipment as your business grows.
How much does it cost to lease restaurant equipment?
The cost of leasing restaurant equipment varies depending on the type of equipment, the size of the lease, and the terms of the agreement.
But one thing is for sure: leasing can be a great way to save money in the short and long term because monthly payments are typically lower than the cost of a traditional loan.
Where and how to lease restaurant equipment: get your customized financing solution
Equipment financing must be tailored to the needs of each business, and project. This is precisely what leasing companies specialized in the food and restaurant industry, such as Finco, do. We can help you find a customized financing solution, with affordable monthly payments for new restaurant equipment financing.
The best way to apply for a lease is to contact the financial institution directly. At Finco the process is quick and easy.
Finco Financial Group: a Leasing Company to Finance your Restaurant equipment
If you are in the market for a new or used restaurant equipment, Finco Financial Group can be your go-to source for financing. We offer support and solutions tailored to our customers in the food and restaurant industries, to businesses like yours. Our leasing service options are customizable to fit your needs, so you can get open, or grow your restaurant without breaking the bank. Contact us today to get started!
FAQs about restaurant equipment leasing
Here are some of the questions that our customers in the restaurant and catering industry ask us most frequently, in order to provide you with more information in this article.
Can I lease commercial kitchen equipment?
Yes, you can lease commercial kitchen equipment. There are a variety of equipment financing options available, including lease-to-own arrangements. It can be a great way to get the equipment you need without having to make a large upfront investment.
Can I lease used restaurant equipment?
Yes, you can lease used restaurant equipment.
Do I have to make a down payment to lease my restaurant equipment?
No, you don’t have to make a down payment to lease your restaurant equipment. However, it is typically recommended that you do so in order to reduce your monthly payment amount.