When opening a restaurant, does it make more sense to purchase the equipment out right, or to lease?

I am in the planning stages of a new restaurant and am curious about other people’s experinces opening their own eateries.

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September 1, 2009 | Filed Under Equipment Leasing Questions 

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3 Responses to “When opening a restaurant, does it make more sense to purchase the equipment out right, or to lease?”

  1. street4success on September 1st, 2009

    I haven’t opened one but I would think your cash requirements would be less if you lease, at least initially

  2. Spock (rhp) on September 1st, 2009

    the death rate of new restaurants in America is about 50% in the first year — which is why banks won’t lend money to start one.

    most new ventures are undercapitaized, so they lease as much as possible because they can’t do it the other way. Landlords and equipment lessors know this, as well as the risk they won’t make it, so they jack their rates up in compensation for the expected proportion of late payments [before the place goes broke].

    this suggests that if you can raise the capital needed, you’ll be better off in the long run buying the equipment.

    In my area, there are plenty of used restaurant equipment places — evidence that ambitious new owners didn’t make it.

    GL

  3. Maxel M on September 1st, 2009

    will your business be located within USA?

    if so, then you can have this credit card processiing equipment FRee of charge. it is free already fully programmed and encrypted with the ability to accept all major credit cards immediately and can also help you decrease fraud and increase sales, features electronic check guarantee and recovery; wireless and high-speed processing solutions; online Web reporting; signature capture to prevent chargebacks; age verification; gift cards; ATM machine and POS debit card processing.

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