Whether To Buy Or Lease When Investing In Restaurant Equipment

Those who own a restaurant know the need for premium restaurant equipment and food supplies. Of course, the question always arises as to whether one should buy or lease. Many new entrepreneurs will lease their equipment, while experienced owners understand the advantages of buying their equipment and supplies, despite the larger initial expense. It's important to know the pros and cons of buying equipment in order to make the right choice for your business's future income and welfare.

The main priority for restaurant owners is to invest as little money as possible for the largest gains. While it appears logical to lease to avoid spending a large amount of money, it may actually be detrimental to your finances over a long period of time. As an example, the rates for leasing equipment can add up. Leased equipment includes a monthly charge over six months or a year. Those owners who choose to lease for a year will be forced to keep their leased equipment for the duration. If you need to relocate the business or if your company fails, breaking a contract can be very expensive.

If you buy your equipment then you are the owner of it. Equipment that fails or malfunctions will be entirely on your shoulders. When leasing, equipment failure could result in liability on your behalf, even if you were not responsible for the damage. Additionally, leasing companies tend to try to sell you more equipment than you need to make a larger profit. If you buy the equipment yourself then you'll know just what your business needs and the amount you've budgeted for expenditures. The wise entrepreneur will pay for the equipment in full in order to avoid needless contracts and the monthly leasing fees. Ultimately, though, it's vital to look at the food establishment that you alone are running and make the best decision for your company.