Equipment Financing Tips For Restaurant Businesses

Introduction

If you are thinking about opening up your own restaurant, one of the major challenges you are likely to face is equipment financing. Opening your own restaurant requires a significant amount of capital. For starters, you need to invest money in restaurant equipment like fridges, grills, stoves, gas ranges, tables, chairs, freezers, flatware, POS system, computers, to name a few. Apart from this, you will also need to invest in designing your menus, staff, permits and not to forget, website and marketing. Now, you can take a rough estimate of how much start-up capital you are going to require in order to be able to buy all of these essential pieces of equipment, permits, furnishings as well as soft costs. In this article, you will learn about the best restaurant equipment lease financing tips for business owners in Canada.

Tips For Equipment Financing

1. Shop Around

Get quotes from several reputable vendors and compare them. Make sure you know what is included in the quoted price and what is not. Also, if it has been used before, make sure that you get a warranty with it.

2. Negotiate With The Vendor

Because of the internet today, doing business has become very ‘impersonal’. You can send emails to various companies to just find out the cost. However, negotiating on the phone is much more effective, or better, in person. Most vendors will give you a discount on big orders. All you have to do is ask. Create some rapport, a bond with them and choose wisely. Sometimes, even that one phone call can affect your decision and you not lease that equipment from a particular vendor. Take your time to make that call and you will find the best quote for your equipment.

3. Used Restaurant Equipment For Lease

Keep in mind the benefits of leasing used equipment. Usually, it is a lot cheaper and as long as it has been used by the previous owner, you might be able to lease a higher-end piece of equipment for the same cost as a new lower end one. But, there is one negative of leasing used equipment, and that is if it breaks after you make your purchase. Many dealers who sell refurbished equipment will provide you with some sort of warranty, sometimes even a short one like 30 days.

4. Check Your Credit

Several restaurant equipment lease companies only approve those clients with good to exceptional credit history. They might also have a minimum time in business requirement. Before filling out a restaurant equipment lease application, ensure that you qualify for their program. Once again, an email or a call will help you accomplish this. Econolease is a company that delivers financial solutions to numerous food service businesses in Canada. If you have any requirements for restaurant equipment in Canada, you can always seek financial help from Econolease.

5. Try To Find Free Lease Product Distributors

Several equipment distributors provide a ‘free lease’ if you make them your official supplier. For example, if you serve coffee in your restaurant, look for a distributor who will give you a coffee maker or a freezer at no extra cost as you are only showcasing their brand. Therefore, it will only make sense that you buy all your equipment from them. But don’t forget that free is not always better. Ensure that you are able to fully understand the cost included in buying coffee (or any other product) from them. You may realize later that you are paying more to serve their brand than you would if you bought in bulk from another distributor.

6. Follow Local Regulations

You must know that there are certain rules and regulations in furnishing a commercial kitchen. Before you submit your restaurant equipment lease application, perform thorough research and make inquiries from the local health department, building inspector, fire inspector and city zoning about certain rules for cafes or restaurants in your area.

7. Avoid Overspending

Because of all the excitement of setting up a new business and opening a restaurant, many entrepreneurs end up overspending by taking on too much, too soon. Designing a sturdy business plan will help you in mapping out your business goals. Apart from this, it will also help you in creating and maintaining a budget. You must be practical and realistic about your requirements and keep your budget in mind.

Wrapping Up!

Apart from the tips mentioned above, you must also consider opening a franchise as many of them usually have in-house financing. If you are new in the business world, then a franchise is the best option for you because the help it gives you is well worth the cost. If you are looking for leasing restaurant equipment in Canada or the US, Econolease must be your go-to place for equipment financing.