Financing & Leasing
1. Use of Equipment — Leasing provides you with the equipment for an agreed upon monthly payment, so you’re able to pay as you use it.
2. Tax Benefits — You can deduct your monthly lease payment as an operating expense.
3. Flexibility — Minimal down payment. You can structure payments to fit your budget.
4. 100% Cost Coverage — You can include “soft” costs such as space planning & design fees‚ shipping and installation right into the lease.
5. Conservation of Capital — If your money isn’t tied up in equipment costs‚ you’re free to spend it on other items such as inventory‚ advertising or personnel.
6. Easier Cash Flow Forecasting — Fixed monthly payments help you budget money into the future.
7. Fixed Payments — You can lock in payments now and avoid the risk of inflation in the future.
8. Preserves Credit — Leasing does not tie up your line of credit, so you have more capital at your disposal when you need it.
9. Longer Terms — Many banks only lend money short term — usually 12 to 36 months‚ while Leasing lets you extend your term up to 60 months.
10. Purchase or Renewal Options — At the end of your lease‚ you may choose to purchase your equipment, upgrade to new equipment or continue to lease at substantial savings.
For applications to leasing companies that serve the restaurant industry.
Loan vs. Lease
In the simplest terms‚ a loan is the borrowing of money while a lease is a rental agreement for the use of specific equipment.
As financing vehicles, loans and leases both have their benefits and their drawbacks. Below, we have outlined some of the
major issues which might affect your decision.