Restaurant Equipment Leasing Tips

If you’re looking to start a restaurant, one of the main hurdles you'll have to deal with is financing new equipment. Creating a restaurant from the ground up requires a whole lot of capital. For example, it is necessary to get restaurant equipment including everything from stoves and fridges to freezers, cash machines, safes and furnishings. Depending on the size of the restaurant, that’s a whole lot of stuff and a whole lot of cash to lay out from the start.  
 
Sure, you could apply for and hopefully land a business loan, however, spending all of those funds on equipment isn’t always the best way to tackle your finances. That’s why so many startup restaurants and even expansion eateries go the restaurant equipment lease route instead.
 
There are plenty of restaurant equipment leasing companies our there – so here are a few tips on what to look for and what to avoid:  
 
1. Make sure the restaurant equipment leasing firm has been approved by the NSF. If you rent kitchen appliances, you need to ensure that all devices sport an NSF (National Sanitation Foundation) Sticker. Commercial appliances without the NSF seal could lead to big penalties when the local health department comes around to do an inspection.
 

2. Don’t Buy Too Much. The excitement of starting a restaurant often can cloud a restaurateur’s judgment, and lead to impulse buying with the restaurant equipment leasing company. Just because they have the newest, best and greatest supplies known to mankind, doesn’t mean your kitchen needs all of its from the outset. Consider your budget, how much room you have to accommodate all of the stuff and your menu. Be realistic.  
 
3. Follow The Rules. If your locality has specific rules on how a commercial kitchen needs to be set up, plan accordingly – and well before submitting your restaurant equipment lease application. If you’re unsure, ask questions of your local health department, fire and buildings inspectors and your city’s zoning board – otherwise, it could bite you in the wallet from two directions later.  
 
4. Comparison Shop. Just because the restaurant equipment leasing company you’re in negotiations with seems to have the best prices – and even if they come highly recommended by trusted sources – that doesn’t mean you shouldn’t see what the competition has to offer. If nothing else, should you find better prices elsewhere, it gives you some bargaining power.  
 
5. Read Your Lease Closely Before Signing. Don’t blindly sign a restaurant equipment leasing agreement before reading it carefully – or having your attorney read the fine print. Good leases are great, but bad leases are usually impossible to get out of without big time fees.
 
6. Check Your Credit. If your credit rating is low, you might be stuck paying higher interest rates or not getting approved for any equipment at all. If you have lousy credit, restaurant equipment leasing might not be the right avenue to pursue and you might want to consider buying used equipment while you repair your rating.
 
7. Try The Products Before You Agree To Lease Them. If you’re not sure about whether you want some of the equipment for the long haul, some restaurant equipment leasing companies offer trial rental periods on their products as an enticement to work with them on a regular basis. Jump at the opportunity if it arises. 

Article source: Contributed by RestaurantNewsResource.com, a global restaurant news distribution service.

Reader Comments:

Be the first to leave a comment for this article