Many of you have got in touch with me regarding the difference between leasing-to-own and renting the equipment you need for your restaurant. Business owners often rent because they’re just getting started and aren’t sure what kind of equipment they need, and they idea of renting seems much more attractive than owning dishwashers, ranges, and other expensive equipment that may break or become obsolete. Buying equipment outright can seem like a risky proposition, especially to someone just getting started in the business who may be low on capital. These concerns are totally understandable. However, upon closer inspection, the terms of rental agreements may not be as beneficial to your business as they seem.
Take, for instance, commercial dishwashers. When you walk into a large chain establishment, what you will often find is dishwashers rented from a chemical company like Ecolab. Because these chains rent so much equipment at a time they get a great rate, however for the small business owner, these equipment rental agreements can often turn into a nightmare
In a very frank blog post, one unsatisfied Ecolab customer spells out her complaints about her rental agreement:
“Not long ago, I mentioned on the blog that we received a bill for $78.17 from Ecolab and the bill stated ‘MINIMUM PURCHASE NOT FULFILLED.’ When we called Ecolab to ask what that meant exactly, the customer service rep told us that we were required to buy so much chemical per month.”
That’s right, companies like Ecolab will require you to buy a certain amount of cleaning chemicals monthly as part of the agreement you make in order to rent their equipment. If you don’t meet these monthly requirements, there are often penalties and other hidden charges to deal with. When you get an equipment lease through an independent lender, the equipment for all intents and purposes is yours to do with as you will. Not sure you are interested in owning the equipment? Most equipment leasing companies offer what is known as a fair market value lease, which allows you to return the equipment once your lease is up, or trade it in for latest technology.
So, when you’re thinking about getting the equipment you need to open your restaurant. Consider a lease, and don’t be fooled by rental agreements that lock you into predatory service contracts. Companies like approvemylease.com offer competitive monthly rates on the items you need for your business and can even help you find your own chemical providers and service companies, so check out a lease, and start investing in yourself today!Pages: