Restaurant equipment financing helps restaurateurs to buy equipment without paying upfront. It may be a good option if you want to purchase expensive kitchen or dining room furniture but don't have the cash on hand.
What are the Pros & Cons of Restaurant Equipment Financing?
The Pros of Restaurant Equipment Financing:
- The equipment is usually bought outright, but you give monthly payments, so you don’t have to worry about upfront payments.
- You can finance up to 100% of the cost of the equipment, meaning that you can purchase more expensive items.
- You may receive a tax deduction for any interest you pay on your loan.
The Cons of Restaurant Equipment Financing:
- If your restaurant goes out of business, you may be liable for the remaining balance on your loan.
- Interest rates are often higher than with other types of loans.
Leasing is one of the most common types of restaurant equipment financing. A lease, contrary to purchasing equipment outright, provides flexibility and is faster than borrowing funds.
Equipment Leasing VS. Equipment Financing
Leasing is a popular alternative to traditional financing. It offers more flexibility than financing and is often less expensive.
The benefits of leasing are that it does not require as much upfront cash as traditional financing, there is no risk of depreciation, and it can be an excellent alternative for tax purposes. The disadvantages include that the lease payments are not deductible, and the company doesn’t own the equipment.
How to Qualify for a Business Loan or Lease for Your New Restaurant
Qualifying for a business loan or lease for your new restaurant can be a daunting task. There are many things to consider, and you may not know where to start. But don't worry. We've got you covered!
Restaurant equipment financing can be challenging to obtain through a traditional bank, as borrowers must have excellent credit and profits to qualify. However, with equipment financing, most businesses can qualify for the financing they need. The good news is that restaurant equipment financing is fast and easy, and you can get it quickly if you need it. You only need to submit a form or contact our team, and we will pre-approve your application fast and with the best terms. If you're a business owner looking to improve it, Equipment Financings is the perfect solution for you. Contact us now!