With America’s fascination for cold drinks, commercial ice makers are essential pieces of equipment for any restaurant. If you walk into a store or start your online shopping, you will get seemingly endless ice machines. But the time is now. Follow this guide on Ice-O-Matic GEM1306A Air Cooled Pearl Ice Maker leasing and financing, and you will be well on your way to big savings.
Ice-O-Matic GEM1306A Air Cooled Pearl Ice Maker Description
Ice-O-Matic GEM1306A will help you produce soft, chewable ice crystals. This air-cooled, self-contained condenser makes around 1,350 pounds of ice every 24 hours. Pearl ice cools beverages faster and longer while maintaining flavors better. Reduced water and power usage compared to cube ice makers.
Ice-O-Matic GEM1306A SystemSafe load monitoring system constantly checks workload on gearbox, shutting down the system before an issue develops. It has a water sensor that eliminates low or no water failures and cannot be impacted by adverse water conditions. Its rugged stainless steel evaporates, and auger ensures reliability and the industrial-grade roller bearing and heavy-duty gearbox offer years of trouble-free service. The unit measures 27 inches tall by 21 inches wide by 24 inches deep.
Restaurant Commercial Modular Ice Machines Leasing
Of all the equipment in a restaurant, it is the ice machine that is usually down. They are known for being the least-reliable units; however, they are also a necessity in any restaurant. If you purchase an ice machine, which is comparatively inexpensive compared to major equipment, it will only set you back about $2,000 to $ 4,000. Note that warranties are shorter on these pieces, usually not more than five years.
Leasing an ice machine is a better choice since it will probably cost you a couple of hundred dollars every month, and the price includes repairs. If you do the math, you will end up paying more to lease an ice machine for twenty-four months than you would if you bought one; however, it might be worth it compared with the hassle of breakdowns and getting a way to get ice for the day. The majority of leasing agents work fast to get a working machine in your kitchen as fast as possible. Lease an ice machine to save on hassle and upfront costs and opt to buy if you have a backup plan when the machine breaks down.
What Is Restaurant Equipment Leasing?
In simple language, equipment leasing refers to obtaining restaurant equipment like ice maker on a rental basis. It is a great way to make sure your restaurant has the necessary equipment to keep it up and running without having to invest capital.
How Does Commercial Ice Maker Lease Work?
When you require an ice maker for your restaurant but think it is not wise to invest in it or lack sufficient capital to get it, an equipment lease is a good idea. The leasing procedure works the same way as rental agreement. bYou, the lessee, and the appliance owner, the lessor, draft a contractual agreement in which they let you use the ice maker for a certain period in exchange for periodic payments. During the lease duration, the lessee can use the equipment as though they own it, while the lessor is not allowed to repossess it till the end of the contract. However, in some situations, it is possible to break the lease before the end of the agreed period.
Types Of Restaurant Lease For Commercial Ice Maker
Even if there are several types of leasing, all leases fall under the two sections below:
A Capital Lease
This type of lease is usually long and non-cancellable. Restaurants taking this option are expected to incorporate it into their balance sheet since it is considered a purchase. It is favorable for businesses that need to use capital intensive equipment for a long time but do not have the money to buy it since: The owner transfers ownership rights to the lessee at the end of the lease period. The contract contains a bargain purchase option. Thus the lessee can opt to return or purchase the equipment at a less than fair market value after the lease period is over. The life of the lease is usually seventy-five percent greater than the asset’s useful life.
An Operational Lease
It is the most common lease. Unlike the prior, it does not impact an entity’s balance sheet. It is also short and cancellable. You are thus permitted to cancel the contract if you finish using the ice maker before the lease period is over. However, this comes with a penalty, and you have to provide notice. Contrarily to a capital lease, the lessor bears the risks of obsolescence. Therefore, you can always request upgrades.
Benefits of Restaurant Ice Machine Leasing
Generally, equipment leasing comes with a host of advantages. Some of the most appealing ones include:
- Enables you to channel your capital to your restaurant’s more pressing needs instead of investing in inexpensive ice machines.
- Keeps your restaurant up and running by allowing you to get the ice maker when you do not have sufficient capital.
- Equipment leases come with some appealing tax incentives.
- Some leases provide an old-trade option. This allows you to exchange your old restaurant machine and get newer without spending much of your capital.
5 Restaurant Commercial Coffee Maker Leasing Mistakes To Avoid
Five mistakes to avoid when leasing an ice machine
Understand The Early Payoff Terms
Most restaurant owners agree to lease equipment without fully understanding the terms of the agreement and are commonly surprised by the payoff amount when they try to pay off an equipment lease early. Equipment leases are an agreement to pay a particular amount of money over a certain period.
So, a borrower might accept to pay $150,000 overtime to access multiple ice makers worth $100,000, with the total including all interest charges and other fees. That amount will not change, whether it is paid off in three months or three years. Compare this to an equipment loan, where borrowers can stand to save significant amounts in interest by paying off the loan early. This can result in sticker shock for restaurant owners, unaware of how leases work.
Lease The Right Commercial Ice Maker For The Space
Whereas choosing the right restaurant ice maker to lease might feel like it is all about how functional it is, restaurant owners would ensure the equipment is also functional for the space. Not accounting for how a piece of equipment will fit a restaurant’s floor plan is planning for failure. After the ice maker has been leased and delivered, returning it can be expensive, so measuring tape and a patient approach are commended tools.
Check For Liens on Used Restaurant Ice Machines
If you are shopping for used equipment on the private market, restaurant owners should check with the seller to see if there are any UCC liens on the appliance or blanket UCC liens on restaurant assets. If there are, the lender will have to be contacted to release its interest in the equipment before it can be leased to a new restaurant.
Plan for Ongoing Maintenance On The Equipment
Most restaurant owners make the mistake of believing that ongoing maintenance costs will be covered by the financing or leasing company. This is not always the case, and failing to plan for upcoming equipment maintenance or to fix broken equipment might have devastating consequences. Restaurant owners should always budget regular maintenance for all major pieces of equipment and make sure there is an equipment breakdown coverage or emergency fund in case the ice machine fails.
Train Staff On New Equipment
When placing new leased restaurant ice makers into service, it is significant that staff members receive training on the new equipment. In the case of some major pieces of the restaurant, it might be prudent to buy special training from the dealer or manufacturer. In most cases, this training can be paid for by rolling the cost into the equipment lease agreement. Not training employees can lead to equipment misuse or malfunction, which can cause costly repairs or injury.
How To Apply For Restaurant Commercial Ice Machine At Top Financial Resources?
Top Financial Resources establishes long-term financial relationships with every one of our customers. We earn your trust by delivering our promise to treat you and your restaurant as if it is our own. We have a ninety-percent loan approval rate. We use realistic, underwriting practices when making our lease and finance decisions. Submit your application, and you will have our decision within twenty-four hours. After you are approved, the money will be deposited in your account within days. Best of all, you can lease or purchase your restaurant equipment from any vendor you wish. Remember, your success is our success. Start a conversation with us today and learn how we will strive to find the right financing your restaurant requires to thrive: 1-(800)-260-5126. Or, apply now by filling out our ten-minute online application, and get the funds you need in as little as one day.