Financing Your Texas-Style Restaurant Equipment
Whether you are interested in barbecuing, providing old-fashioned, home style eating, or spicing things up with a little Tex-Mex, running your own Texas-style restaurant can be a rewarding experience (especially if you are of the opinion that there is simply nothing like Texas-style comfort food to warm the heart and strengthen the spirit).
One of the biggest challenges you will face as you set up your new restaurant is getting the equipment you need at a price you can afford. Grills, smokers, ovens, and coolers, etc can all be very expensive, and many of these items will quickly depreciate in value and obsolescence after you acquire them. Choosing second-hand equipment as an alternative can save you a lot of cash upfront. But then you risk breakdowns that may cause you to shell out more money in repair costs then it would be to buy the equipment new.
The Benefits of Leasing
There are many advantages equipment leasing has over buying. First of all you can conserve your capital by avoiding the down payment one is required to make in order to purchase new equipment. Leasing companies will also usually cover the costs of the equipment's installation and maintenance. Second, you could end up getting better quality equipment with the latest technology since most equipment leases include the option to upgrade to a new model upon renewal of the lease. Third, if you are not planning on purchasing the equipment at the end of the lease, then you can claim your lease payments on your tax return. Finally, many leasing companies are flexible when it comes to their leasing rates, so you may have room to barter them down.
What Should You Lease?
Although most restaurant equipment and furniture can be leased these days, certain items are particularly suitable for equipment leasing and or financing:
The bottom line here is that by financing equipment with a lease you can set up your new restaurant with quality equipment and still preserve your cash flow- not to mention your piece of mind.