Now that you have smartly decided not to tie up your capital in buying catering equipment you are confronted with yet another big question. Should you take your restaurant equipment rental or should you lease it? To answer this question correctly you need to understand the pros and cons of leasing and renting. While each option has its own sets of advantages you need to examine your business structure and goals to understand whether you should lease or rent the Silverchef equipment.
The financial advantages of leasing equipment
Leasing is a process by which big capital expenses will be transformed into small manageable monthly payments. So you get to avail the uses of the equipment instantly while holding back your cash reserve in store.
Leasing is definitely better than buying because the precious hard cash is not invested in assets which will depreciate. You can put your cash to other uses.
The biggest advantage of opting for leases is that the lease rental is 100% tax deductible. This ensures that all the payments that you have made for your equipment are deducted from your tax bill. This is a major cost saving and you get to use Silver Chef rent to buy now and pay for it later.
Unlike rent rates lease rentals are fixed and not subject to inflation. This means that you can calculate your future expenses accurately.
You are spared the expense of tying up your precious funds for costly equipment. Leasing equipment would mean that you have to pay the lease amount for at least four years.