We have had many customers (new and old) asking about what the difference is between leasing, renting and buying coffee machines recently so we thought it would be helpful to give you the pro’s and cons from our perspective.
Leasing coffee equipment gives you the opportunity to have brand new machines at a very easy and manageable payment plan often invoiced on a quarterly basis. This helps with cash flow and has certain tax benefits too. You need to have good financial history to get cleared for leasing but there are many companies that can help even if you have some problems in that area.
The downside of leasing means that you are committed to that fixed term (typically 36-60 months) with little flexibility to break that term without financial penalties. Leasing is best for stable and established companies with good finances and a clear view of their business future.
Outright purchasing equipment is a good thing if you like to own all of your assets and want flexibility with what you do in the future of your business. If you have outright purchased your equipment and you out-grow the capacity you can simply change/upgrade/downgrade as you wish without penalty.
You have the option to sell or trade in your equipment for machines that suit your precise needs. The downside is the fact you have to spend a large amount of cash on a piece of equipment that is always depreciating in value and will be dated and needing refurbishment after 5 years. Technology moves so quickly and machines are getting better and better meaning customers want to upgrade at least every three years, this culture does not fit too well with an outright purchasing type plan.
Here at Caffe Praego however we can also offer a ‘Rental’ plan that offers the best in flexibility and cost. We will buy the equipment on your behalf and rent it to you over a fixed term. If things change and you want to upgrade, downgrade change or alter the term of equipment then we can do it far easily as the finance has been organised ‘in house’. Get in contact with us today if you would like to discuss your existing needs whether that is leasing coffee machines, buying coffee machines or renting coffee machines.
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