As a business owner, financial decisions can be harrowing. When it comes to industrial ice machines, refrigeration equipment, and commercial dishwashers, you'll have to weigh the pros and cons of purchasing or leasing the appliance(s) you need. At Mission Restaurant Supply, we understand that there are advantages to consider for each path. Here are our tips to consider as get you started.
Leasing equipment has a slew of benefits that are especially enticing for smaller or newer businesses, but also for businesses looking to expand or remodel. Primarily, leasing reduces the risk associated with acquiring equipment and can give you access to the high-quality, name-brand items you need, even if you don't have the credit history or capital necessary to purchase it. Some of the best perks of leasing include:
Reduced upfront payment. For most leases there is a deposit and a first monthly payment. That's much less than the principal payment on most equipment loans, so you can get your equipment for a smaller initial investment. Plus with Mission Restaurant Supply, installation costs are already wrapped up in the leasing price so you don't have to worry about unexpected fees.
Savings on maintenance and repair. Leasing agreements include terms for regular service and any necessary repairs. That means you aren't on the hook for a major sum if something goes wrong.
Adapting equipment to changing needs. As your business grows, you can upgrade or change your equipment for virtually no extra cost.
Mitigating depreciation. Heavy equipment and appliances cost a lot of money, but they don't hold value well. When you lease, you don't lose money to depreciation.
Credit building. Particularly useful for new businesses, leasing can help you bulk your credit history, fast.
For all the advantages of leasing, there are still good reasons to buy your equipment outright. Chief among them is freedom. When you own your appliance, you can do whatever you want with it. That freedom can lead to creative business solutions. On top of that, when you buy:
Equipment becomes an asset. This can help you acquire money through loans or investors when you want to expand or make major purchases in the future.
Save money in the long run. If you have the cash available to make a large down payment or even purchase outright, you cut long-term interest totals considerably. This can save you money down the road.
More options. Equipment for lease is often more limited and restricted than options for purchase. If you are located outside of the leasing radius or need a speciality model that isn't available for lease, purchasing is often the only option.
Call Mission Restaurant Supply for More Information
If you still aren't sure which option--buying or leasing your equipment--is right for your business, call and have a chat with us. We have considerable experience, offer an array of products to meet most needs, and we'll be happy to help you understand all of your options leasing and purchasing options. You can reach us at 1-888-209-6180