Why Leasing Restaurant Equipment May Be a Wiser Choice

Categories Business Tips

Are you opening up a new restaurant and looking for ways to lighten your load financially? Then consider the possibility of leasing your commercial kitchen equipment.

If you are working within a limited budget, outfitting your kitchen with leased equipment may make the most sense and can save you loads of money during the initial start-up phase. It may also be the best decision for your restaurant’s future.

The Upside of Leasing

  • Initial cost savings

    Buying new kitchen equipment can be a very expensive endeavour. Leasing requires a lower initial cost so you can get your kitchen up and running without breaking the bank.

    This is also a great way to safeguard your initial working capital as you only pay a flat monthly rate for the equipment.

  • Upgrades are possible

    When you fulfill your original lease contract, you have the option of upgrading to a newer and better model.

    This is great feature as you avoid the hassle of putting your older equipment up for sale and instead end up with a shiny, modern piece of equipment that is ready to use.

  • Tax Deductible

    Considered a business operating expense, leased kitchen equipment may be tax deductible and offers you the possibility of putting money back in your pocket at the end of your tax year.

  • Option to Buy

    Rent-to-own is an option offered by many leasing service companies.

    If you are considering buying the equipment at the end of your lease then any monthly payments you have made are applied to the purchase price of the equipment.

    This is a great option for those who are unable to afford the initial upfront cost.

The Downside of Leasing

  • Overall cost

    If you are considering renting your equipment over the long term, leasing may end up costing you more than buying.

    Although the lower monthly lease payments may be easier to handle, keep in mind that the leasing companies usually charge a higher interest rate than traditional banks.

  • Locked in a contact

    With any lease agreement, you are required to sign a contract that outlines the length of the agreement as well as the terms and conditions for that rental.

    Make sure you understand the fine print of what is required of you as well as the consequences of ending the contract early.

As you consider outfitting your commercial kitchen with leased equipment, it is imperative that you find a reputable supplier and start asking important questions about the desired equipment.

Questions such as the age of the equipment, inclusion of warranties, etc. can help you make the right choice for you and make your restaurant a reality.


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