Benefits of Restaurant Equipment Financing

1. Benefits of Restaurant Equipment Financing The cost of setting up and operating a restaurant can be pretty steep. High food costs, tight margins and staffing take up a huge portion of your budget, resulting in very little money left to do anything else. However, it is non-negotiable to purchase and update your restaurant equipment. Fortunately, there is a simple solution to this problem, restaurant equipment financing. It is a great option for restaurants whether setting up or upgrading old appliances. Usually, restaurants use this type of financing to borrow assets for the business. This applies to all commercial equipment, from ovens to walk-in refrigerators. Instead of coming up with the cost of the equipment upfront, a restaurant owner can simply finance. Lending companies either pay for the equipment directly or lend the money to the entrepreneurs. Entrepreneurs then have to pay back the loan on a monthly basis with interest until it is paid in full. Since restaurant equipment financing entirely depends on the equipment as collateral, loans are easier to come by and they usually come with better rates than typical business loans. Types Of Equipment You Can Finance ● Commercial kitchen equipment ● Large pieces of equipment ● Point-of-sale systems ● Dining room furniture ● Delivery vehicles You can also opt for leasing kitchen equipment, though it is not very common in the restaurant industry. When you lease equipment, the company you are leasing from owns the equipment while you use it. Because you do not own the equipment, you cannot take advantage of tax benefits with asset costs.

2. Benefits Of Financing Your Restaurant Equipment Restaurant equipment financing offers various benefits as opposed to purchasing outright. 1. Keep Capital on Hand Whether you are setting up a new restaurant or upgrading old equipment, restaurant equipment financing allows you to keep your working capital but still get all that you need. This is essential in the restaurant industry where cash flow management is pivotal. You can use that money for other things such as inventory, payroll and even food. 2. Smaller Down payments Restaurant equipment financing does not require a large amount of money for the down payment. Because the equipment itself is the collateral, the lender has no risk, nor do you have to pay a large down payment, resulting in a win-win situation. 3. High-Quality Equipment You can take your commercial kitchen to the next level when you choose restaurant equipment financing. You get to stretch out your payments which results in you being able to afford better quality equipment compared to when you had to pay for it upfront. 4. Up-to-date Equipment When you go for restaurant equipment financing, you have the same advantage as your competitors with the latest and the best professional kitchen equipment available in the market. With newer and advanced models of equipment you can improve the output of your kitchen.

3. 5. Put Life into Your Business The fact is that when your staff works with outdated equipment, it stops their creativity. Your staff may lack pride in their work or even get frustrated with the accommodations they have to make for outdated equipment. Installing new and upgraded equipment can literally re-energize and boost the morale of your staff, putting new life into your business. 6. Enjoy Low, Fixed Monthly Payments As in the case of restaurant equipment financing, the equipment itself acts as collateral, you get to enjoy lower monthly payments than you would in the case of loans. In addition, there are no unpleasant surprises as you get a fixed rate for the length of your loan. 7. Enjoy Better Interest Rates As mentioned above, interest rates are pretty reasonable as opposed to other types of business loans. 8. Enjoy Tax Benefits When you opt for restaurant equipment financing, based on the structure of your loan, you may be able to write off part of your equipment purchases. This is limited to finance as opposed to leasing wherein you technically do not own the equipment. One of the most essential things to note when you go for restaurant equipment financing is that it will cost you more in the long run than if you were to buy the equipment up front. Although this is definitely a con for restaurant equipment financing, we still recommend it because the benefits surpass the cost for many. It is important that you first review your situation to determine which method will suit your needs. So, if you think that restaurant equipment financing is the right choice for you, then Econolease is your ideal destination. We make sure that we tailor our services to your needs.