5 reasons why you should choose leasing when purchasing your catering equipmentPublished on 7th May 2016 - Last update on 5th September 2018
One of those unavoidable costs when running your own restaurant, cafe, or bakery, is high-quality catering equipment. Here’s a list of reasons why choosing to lease the equipment – paying it off out of your monthly earnings – could be a lifesaver for your business.
- Your restaurant may not have the money immediately available to buy a £900 gas oven range. By spreading out the payments over several months, or even several years, you can receive and use your purchase immediately, but convert a large capital expenditure into smaller monthly payments, promoting sustainable and continuous business growth.
- Leasing is the most tax-effective way to finance the equipment you need, as your monthly payments are usually deductible from your taxable profits.
- The monthly payments are not subject to any fluctuation in interest rates. Leasing offers you the opportunity to spread out your payments whilst maintaining a stable cash flow.
- Leasing allows you to choose the higher quality catering equipment, rather than settling for the cheaper and second-rate options. If you were able to buy a more energy-efficient electric grill, cutting your energy use by 10%, you could see a 3-4% increase in profits, offsetting the higher costs of purchase.
- The capital you save by paying smaller instalments can be used for other purposes, which is particularly useful when you’re just setting up. You can spend that cash training your staff, marketing your business, or engaging potential customers.
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