Added: 10/24/2005 |
Commercial restaurant equipment- whether to purchase, rent or lease?There are several ways to the acquisition of commercial restaurant equipment, including the major three: a direct purchase from the manufacturer, dealer or supplier, leasing and rental. For some business beginners, the purchase of the equipment will turn into a hard burden, as the prices are extremely high.
However, for the businessman, who can well afford buying the equipment for his restaurant, it will be the best step to the future success. Why? The matter is that any debt (to which we refer restaurant equipment rental or leasing) is not recommended to begin your business. Any enterprise is subjected to the risk of bankrupting (everyone prefers not to think about it, but the statistics says that more than ninety percent of firms go bankrupt during the first five years of their operation), which will result in the further incapability to pay your loans and leasing requirements.
For those, who have decided to purchase the commercial restaurant equipment, we can recommend the FOODSERVICE PURCHASING GROUP (FPG), the first and the only group purchasing organization for all foodservice owners, operators and buyers. The FPG is a reliable foodservice equipment distributorship with more than twenty two year experience in the foodservice industry. The FPG is the distributor of a great number of manufacturers' products, thus, you will have the greatest choice in both: commercial restaurant equipment brands and prices.
The second option is the restaurant equipment rental, which seems somehow an awkward choice. The commercial restaurant equipment is a very fragile product. It can be easily broken or spoiled, and this is a new problem for the restaurant business owner. The contract of rental will certainly contain the usage requirements, dealing with the broken or spoiled details. All that is reflected in your expenses, and sometimes the price of the rental can well turn into the purchase price, though the result will be different. You will not have your own equipment, as in the case you have bought it.
Then comes the restaurant equipment leasing, not the greatest one, however, still one of the most popular choices. The entrepreneurs employ leasing more and more frequently, since it preserves large cash outlays, required for direct purchases. Viewed from the prospective, leasing is often less expensive than the equipment purchase.
The major advantages of the equipment leasing are:
1) Lease payments can be extended over a very long period of time without large monthly payments, what is more attractive than the bank credit.
2) Leasing does not influence your ability to have an additional credit during the period of the lease payments, whereas one bank credit does not allow the second one simultaneously.
3) As the period of lease payments can go long and the sums are not large, you will not feel any discomfort with your cash and can successfully use it for other profitable purposes.
Choose the most appropriate method of the equipment acquisition and enjoy your newly born restaurant, however, it is better to be skeptical about all choices, speculate much and come to the best decision.
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