Operators exploring how leasing could benefit their kitchen investment decisions are being offered help in the form of a new industry guide that gives them the lowdown on how it all works.
Leasing has proved to be an increasingly popular way for operators to spread payments when buying equipment during a year in which many have suffered severe downturns in their businesses.
However, some caterers are struggling to find basic information, or they are unsure about how leasing works.
The Foodservice Equipment Association has now put together a Guide to Leasing, which looks specifically at leasing catering equipment and is available to download for free from its website.
The guide looks at the benefits of leasing and considers some of the alternative finance options, such as hire purchase.
A ‘frequently asked questions’ section covers a variety of areas, such as VAT and tax benefits. It also talks about what to look for in the small print, to avoid any issues.
“When times are tough, finding the cash for a new commercial fridge, oven, dishwasher or other professional appliance can be tricky,” said Steve Hobbs, chair of FEA.
“This is where alternative finance options, such as leasing, come into their own. In fact, the Covid-19 crisis has led to the development of increasingly flexible finance packages, notably with features like low-start payments or even payment holidays, especially at the beginning of the arrangement, designed to give the operator a leg up to help build business. The FEA Guide to Leasing gives operators the information they need to know.”
Mr Hobbs said it was important that operators know about alternative finance options, as it may allow them to overcome budget restrictions and access the best equipment available.
“Investing in good quality equipment is the best way to enhance your business,” he said. “Leasing, and other alternative finance options, are a great way to benefit from the latest models – in fact, with many leasing arrangements, you can upgrade equipment during the lease to a newer model, to help you stay ahead.”