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Should You Lease Or Buy‍ Catering Equipment

4 May 2021, 4:52 PM

Should you Lease or Buy
Catering Equipment?

Catering equipment is, of course, an essential consideration for any catering business. But how do you actually get it? You have two primary options available, either buying it outright or taking advantage of a catering equipment lease. One isn't better than the other, but how do you decide which is the right choice for you?

What is a commercial equipment lease?

First, let's make sure we've defined our terms. Leasing catering equipment, as with leasing anything, means that you pay a fixed monthly amount to have the use of the piece of equipment. There are many lease deals available. Some offer a lower monthly payment but have no extras, while others are a little more expensive but include things like repair costs and like-for-like replacement in the event of equipment failure.

What kind of catering equipment can you lease?

You can lease all manner of catering equipment. At Restaurant Supply Store, we offer a broad range of commercial catering appliances and supplies, and we provide competitive financing rates on a large portion of them.

Generally, you'll find that most companies will choose to lease larger pieces of equipment that would otherwise be expensive to buy—things like commercial dishwashers, ice machines, display fridges, and the like. Buying and replacing these could be very costly if you were to do it outright, so many businesses choose to lower that cost with leasing.

Contact the Restaurant Supply Store to learn more about our leasable equipment.

What are the main benefits of leasing?

It makes better equipment more affordable
One of the primary benefits you should consider for leasing is that it makes it more affordable to access larger and more premium equipment. Capital investment is a concern for all businesses, and you need to think about how far you can make your money go. The truth is that it will go a lot further with a lease, as lease payments are often lower than finance payments. This means you can get access to a larger or better piece of equipment without having to take a large chunk out of your finances to get it.

Easy replacement and upgrades
Leasing is great for equipment that you might want to update fairly often, such as display chillers and units, or for equipment that's going to be heavily used, such as dishwashers. Commercial dishwashers, for example, are going to be under a constant daily workload, and while that's what they're designed for, it's also going to somewhat limit the equipment's usable lifespan. When you lease, you have a more fixed understanding of the budgeting required, as in many cases, you will be able to upgrade to a new piece of equipment and keep basically the same lease deal going.

Disadvantages of leasing

You won't own the equipment
The major disadvantage of leasing is that you'll never actually own what you've chosen. For the duration of the lease, you will be able to use the equipment as if it was yours, but when the lease deal comes to an end, the equipment will be taken back. This is something for you to decide whether you actually consider this a disadvantage or not. Some business owners want pure practicality, so don't mind the lack of actual ownership. Others don't like the prospect of making monthly payments on something that you're never going to own.

Advantages of buying outright

It belongs to you
Some business owners prefer to own their equipment outright simply because once it’s bought it's yours and you can either use it for its entire lifespan, or sell it on should you wish to upgrade. While new commercial catering equipment requires, sometimes, a large upfront investment, this also comes with long warranties that protect your equipment for a good length of time. Over the long term the overall cost of leasing can work out more expensive than buying outright, too.

More equipment is available
While many things can be leased, you will still find certain items aren't available for lease. That means if you are willing to buy, you have a broader selection of equipment to choose from than if you're only looking at leases.

Disadvantages of buying outright

Ongoing maintenance costs
When you buy a piece of commercial catering equipment, you're more likely to be responsible for the ongoing maintenance, servicing, and repair costs. These are only likely to increase as the equipment starts to get older, too. That means you need to budget accordingly in order to keep your piece of equipment in a proper reliable working order. Some finance deals can have maintenance packages added to them, however.

Which is actually better?

Leasing and buying both have different advantages and disadvantages depending on the nature of your business and the specific piece of equipment that you're looking at. Weigh up the pros and cons carefully to help determine the right move.

If you need any further help or guidance, or to see the range of equipment available to you, be sure to contact the Restaurant Supply Store. Whether it's for purchasing a dishwasher or a commercial fridge lease, catering business owners rely on us to offer reliable equipment at excellent value. Browse our range today.

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