Whether you’re starting up a coffee shop or upgrading your existing machine, leasing is a great idea when deciding that you want a coffee machine. Even if you have the budget to buy one out-right it’s a sensible move to lease one. Mainly because they usually have a 4-5-year lifespan. It also gives you peace of mind that if something goes wrong with your machine you can return it straight away. Many leasing companies include service within the agreement. While warranty is also available for leased equipment. This could also help your business invest in other areas of the business e.g. training, marketing and business strategy alongside having a new machine. Here are some of the key benefits of renting a machine.
Reduced Capital Cost
Purchasing a coffee machine wholly can have a massive impact on capital. Leasing your commercial machine can allow you to spread the costs over their projected lifespan. Once you have bought the machine outright that money has gone and you’ll have to buy another machine in 4-5 years which is the average working life of a machine. By deciding on renting the machine will drastically lower your preliminary expenses.
Once you have used your brought coffee machine and you aren’t happy with its output or it is damaged, there is little you can do about it. Whereas with leasing agreements you can try out your machine and choose if it’s suitable for you and your business. This will help you to decide if you would invest in an alternative model next time. Renting your machine allows for flexibility and the opportunity to extend your contract, buy the machine or return it to the supplier.
Budgeting & Forecasting Cash Flow
When you lease a coffee machine there is a fixed monthly cost that you will have to pay. This doesn’t fluctuate depending on changes to interest rate. You will be paying the same money each month that was agreed at the start of the contract. This gives businesses the chance to look forward and project cash flow much simpler.
Higher Quality Machines More Accessible
As some businesses cannot afford the machine of their dreams, they will often go for a cheap, less effective machine because it suits their budget. Cheap machines could restrict some businesses as it may not be able to cope in some situations e.g. the morning rush. Leasing one will make the high performing machines more affordable for small coffee shops. This raises the quality of coffee across the coffee industry because they all can now create excellent tasting coffee.
In simple terms when you rent one it’s almost like buying a brand-new machine but you can try it out first to see if it’s suits your business. It’s helpful for start-up coffee shops who aren’t sure what they need right now.