21 Jun Should I Buy or Lease a Commercial Refrigeration Unit?
Did you know that the global foodservice equipment market is valued at $34.68 billion? Additionally, owing to the rise in demand for ready-to-eat foods, and take away products, refrigeration equipment, in particular, makes up a significant portion of this market.
If you’re someone who owns a commercial eatery, you’re no stranger to the importance and expense of a commercial refrigeration unit. You may have wondered how to go about your business, and whether it’s wiser to buy or lease your equipment.
We’re here to help.
This article outlines the pros and cons that come with both, buying and leasing your restaurant equipment. Use this guide to make a well-informed decision!
Let’s get started.
Buying a Commercial Refrigeration Unit
In the long run, you’ll find that buying a commercial refrigerator is the cheaper option. Additionally, you do not have to worry about the monthly payments that come with leasing your equipment. Given that it’s a straightforward purchase, this unit becomes an asset to your business.
However, buying also means that you have higher upfront costs. If you’re just starting out, or you do not have the capital to make a big investment immediately, you will be better off leasing your equipment for the time being.
Buying your equipment also means that you have to make a relatively long commitment. In the event of new upgrades and new technological advancements, you might find that you fall short until you have the capital to replace your old unit.
Leasing a Commercial Refrigeration Unit
On the other hand, leasing a commercial refrigerator allows you to maintain your cash flow, given that it requires very little monetary investment at the beginning. You can put off your purchase until you have the steady business to back it up.
Further, your equipment is usually covered for repairs under your lease agreement, which eliminates the stress of an expiring warranty.
Since you do not have any long-term commitments with leasing, you can switch to newer technology as soon as it arrives.
Now, in the long run, you will find that leasing your equipment might be a little more expensive. However, this also depends on the duration for which you want to lease your refrigerator. Additionally, you have to ensure that you’re working with a reputable company that is transparent about the contractual obligations and conditions that come with a lease.
Buy or Lease Your Equipment Today
Deciding whether to buy or lease your commercial refrigeration unit can be a hard choice to make. However, this decision can be simplified when you consider your budget and the long and short-term goals for your restaurant.
At Capital Refrigeration Services, we offer a variety of equipment installation and leasing services to restaurant and business owners. Get in touch with us today to learn more about buying and leasing quality refrigeration equipment at affordable rates! Our team will get back to you as soon as possible.
