Whether you are opening a restaurant for the first time or you are an experienced restaurateur, you have to find ways to save money wherever you can. To lower upfront costs, you can lease some restaurant equipment, such as the Garland US Range SS684 electric gas range, instead of buying it outright. Every piece of equipment a restaurant kitchen needs comes with different life expectancies and warranties. It might be better to buy some appliances and lease others.
Leasing restaurant gas range and stoves
A restaurant gas range or stove is a purchase over lease decision. You can even buy used gas appliances with confidence. These commercial appliances are built to last, and their repairs are far less expensive than electric equipment. If you purchase new, you are looking at anywhere around $ 1 500 to $ 10,000; however, considering the long expectancy of these appliances, it is a good investment. Warranties vary; however, these appliances only carry a one year warranty on labor and parts. So if you do not have cash, it is a good option to lease these appliances, and if you decide to buy, these appliances are long-lasting, and even purchasing used is a smart move.
Garland US Range SS684 Sentry Series equipment leasing
It is simple to get Leasing Garland US Range SS684 Sentry Series Restaurant Range financing for your restaurant through equipment financing companies. You can get a contract for the rental, which ranges from one to two years minimum. You can change the rental contract requirements without being locked into a long term contract. Also, you can obtain Garland US Range SS684 Sentry Series through a lease. This contract will range from three to five years, and at the end of the term, the gas range will be yours.
Let’s talk more about the Garland US Range SS684 Sentry Series before we dive into the financing process. The Garland US Range SS684 Sentry Series electric restaurant features ten powerful sealed heating elements with overheat protection. Overheat protection lowers power to the individual element after eight minutes if it is turned on without a pan or pot. Infinite low or high switch controls offer you complete command over each burner’s temperature.
The Garland US Range SS684 Sentry Series electric restaurant has a complete porcelain interior finish for better heat retention and easier cleanup. Every oven has an electro-mechanical, heavy-duty thermostat with a temperature range of 150 to 550 degrees Fahrenheit. Both the ovens have a cool touch door handle, which secures your kitchen staff from accidental burns. A 10’’ high backsplash and stainless steel exterior make The Garland US Range SS684 Sentry Series electric restaurant range durable, easy to clean, and attractive. The appliance requires a 240V, 1 electrical connection.
Overall The Garland US Range SS684 Sentry Series electric restaurant range
dimensions:
- Height: 47.’’
- Depth: 34 ¼
- Width: 60.’’
Pros of leasing Garland US Range SS684 Sentry Series
Leasing Garland US Range SS684 Sentry Series electric restaurant is an easy way to outfit the entire kitchen, so you can get up and running without having to wait for the financing to purchase necessary equipment. Leasing any restaurant equipment typically does not require much capital, so this is an excellent way to lower expenses and still open the restaurant for business. You do not require financing, which can often take weeks; rather, you simply sign a contract and schedule a delivery date.
In some cases, leased equipment can be used as a tax deduction. So rather than paying a large amount of sales tax to purchase the Garland US Range SS684 Sentry Series, you can use it as a write-off. If you operate a popup restaurant or will be operating only temporarily, leasing offers you the chance to get Garland US Range SS684 Sentry Series without worrying about the stress of selling it after the event is over.
Leasing indicates you are not responsible for major repairs. Restaurant gas range and stoves get a lot of use and abuse, which indicates you might have to replace or repair Garland US Range SS684 Sentry Series regularly. If you lease, the owner of the equipment is accountable for replacement and repairs. In most cases, leasing companies have an offer- to-buy option in the contract.
Cons of leasing Garland US Range SS684 Sentry Series electric restaurant gas range
Leasing Garland US Range SS684 Sentry Series will not offer you equity at the end of the lease. You are accountable for someone else’s equipment. You risk incurring termination fees if you cancel the lease or change providers.
How to lease Garland US Range SS684 Sentry Series?
First, it is essential to note that leasing any restaurant equipment is different for a new restaurant than an established restaurant. As a new restaurant, you will not have credit established for the business, so you will have to rely on your personal credit to meet the lease’s qualifications. When you are looking for the Garland US Range SS684 Sentry Series lease, several factors are considered, including the length of the contract and lease terms.
You must have a general idea of how long you are going to need the equipment. Do you anticipate purchasing the contract for the Garland US Range SS684 Sentry Series, or do you intend to return the equipment later and buy the new? Ensure your personal credit is in good shape; if it is not, have a cosigner ready to back up on the contract. It is essential that you carefully read the contract before you sign on all rental equipment leases.
If you rent Garland US Range SS684 Sentry Series and later add another piece of equipment to the same contract, confirm that all monies you have paid thus far apply to the purchase price if you intend to buy in the future. Also, only lease Garland US Range SS684 Sentry Series from established leasing companies specializing in restaurant equipment. Common types of equipment leases provided by lessors include:
- Fair Market Value (FMV) Lease: Use an appliance under FMV lease, and you will be borrowing the equipment for a set term while making regular payments. After the term expires, you can either return the equipment or buy it at its fair market value.
- Ten percent option lease: A ten-percent option lease works just like a $ 1 buyout lease, only that at the end of the term, you can buy the equipment for ten-percent of its costs. As this will obviously come to more than one dollar, a ten-percent lease generally carries lower monthly payments than a $ 1 buyout lease.
- $ 1 Buyout Lease: With a $1 buyout lease, you will pay off the cost of the equipment and interest over the course of the lease. At the end of the term, you will own the equipment in full. A $ 1 buyout lease is very similar to a loan in terms of cost and structure.
Understanding what types of a lease (or loan) you are looking for can help you quickly narrow down your list of potential lessors. Luckily, finding companies that provide equipment financing is not difficult. Besides, most equipment financing companies are inclined to finance kitchen equipment. More challenging is getting a financer that:
- Lends to a client who has been in business for your amount of time
- Lends to a client with your credit ranking
- Provides a lease or loan that meets your needs and restaurant goals.
Yes, you will have to undergo a credit rating check (hopefully a lenient one) during the application process. And whereas equipment financing companies generally have time-in-business and revenue requirements as well, some companies can be flexible with these requirements if you have good credit rating and finances.
How much does equipment leasing the Garland US Range SS684 Sentry Series cost?
Obviously, the biggest cost of Leasing Garland US Range SS684 Sentry Series will be the price tag. Sadly, with equipment financing, you will be incurring some extra charges:
- Origination fee: This is a closing charge some lenders charge in addition to interest. It is either a percentage of the amount you are borrowing (one to five percent is typical) or a flat fee. This fee is more popular with loans than leases.
- Interest: This is usually the APR of the lease or loan, even though some lenders might use a flat rate instead. In either case, the longer your term length, the more money you will be spending on the equipment.
- Down payment: A payment you are anticipated to make at the time of closing. This is either a portion of the cost that the equipment loan did not cover or, in the case of leases, the first (and sometimes last) month’s payment.
- Administration fee: This is a fee charged in addition to interest to maintain your account. It might be a percentage or a flat fee. It is more popular with leases than loans.
- Residual: At the end of a lease, this is the amount of money you would owe if you were to buy the equipment. In the case of capital leases, the residual might be a trivial formality ($ 1, for instance). In some situations of operating leases, it might be substantially higher, generally the fair market value of the asset.
