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Restaurant Equipment Rental Prices
Leasing is becoming a popular alternative to purchasing kitchen equipment, particularly for new restaurants. It requires little or no money down, and also allows you to spread the cost of equipment over monthly payments spanning several years. Once the lease term is up then you can either purchase the equipment or trade it in for newer models.
Lease financing is also growing in popularity because it's easier to obtain than bank financing. Banks are hesitant to lend to new restaurants without an established credit history or even established restaurants with less than perfect credit. However, leasing companies are usually willing to take on the risk.
Restaurant Equipment Leasing Average Costs
Starting a restaurant from scratch can run $100,000 to $300,000. The cost for kitchen equipment alone makes up a significant chunk of that, usually anywhere from $30,000 to $120,000.
Leasing a full set of kitchen equipment usually runs anywhere from $1,000 to $5,000 per month, depending on the type and size of equipment you choose. However, many restaurants choose to buy certain items and lease others. If you can afford it, you're better off buying major appliances like freezers and ovens. These generally have a long, useful life, which makes buying more cost effective in the long run. You can also write off the depreciation on these big ticket items.
Equipment that doesn't last as long such as ice machines, dishwashers, and coffee makers should almost always be leased. You can usually lease each item for anywhere from $100 to $400 per month. Sometimes companies will allow you to lease items like dishwashers and coffee machines for free if you agree to buy their products.
Leasing is also available for other types of restaurant supplies and equipment. You can lease linens such as napkins, towels, uniforms and floor mats for a small monthly fee. Pickup and delivery laundry service is usually included in that price. You can also lease computer equipment such as restaurant point-of-sale system.
About Kitchen Equipment Leasing
Some leasing companies offer no-money-down deals. Others ask for a down payment, security deposit, and the first and last month's lease payments. Be sure to ask for a total of all the upfront expenses involved before signing a lease. In addition to the equipment itself, a monthly lease can include the costs of tax, delivery, installation and training. This will further reduce your upfront expenses.
Keep in mind that leasing restaurant equipment can be more expensive in than long run than purchasing it outright. However, leasing might be your only option if you're a new restaurant or an established restaurant with less than perfect credit.
Leasing equipment is almost always a better option when you're opening a new restaurant because of the high failure rate of restaurants. If the restaurant fails after two years then you won't be stuck with long-term payments on expensive equipment!