Starting up your own restaurant, café or any other kind of hospitality venue? Congrats! We can’t tell you how stoked we are for you. You’ve probably already done a lot of the hard yards, including looking for a location, headhunting some of the best staff, planning uniforms and dress code… but what about your equipment?
This is one of the processes that can get a little tricky for hospo businesses that are just starting out. You’ve got tens of thousands of dollars’ worth of gear to pay for, so how can you make this possible? Thankfully, there’s a sweet little thing called equipment financing. In this post, we’ll give you a quick guide to hospitality financing and how it works.
What is it?
Restaurant equipment financing, or hospitality financing in general, is when businesses borrow money for hard assets (i.e. appliances, utensils, layouts). The price of setting up a restaurant isn’t exactly cheap, and nobody’s expecting you to have a cool hundred grand spare, just lying around in your bank account. This is where hospitality financing helps you succeed.
Instead of buying your equipment with your life savings, you can finance it, either by borrowing money to buy your equipment upfront, or through leasing it.
What can you finance?
Basically, everything that helps your business thrive. This includes:
- Commercial kitchen appliances
- Smaller appliances
- Utensils
- Point-of-sale systems
- Furniture
- Delivery vehicles
What are the benefits?
There are a ton of reasons why so many restaurateurs choose equipment financing when starting or upgrade their kitchens.
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Improved cashflow
If you’re starting up your own café or restaurant, then you’ll need to keep some cash on hand in order to manage other parts of the business, like payroll, energy bills and food inventory. Equipment finance helps you out while you get your business off the ground.
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Low risk, with little payment upfront
Equipment loans use the kitchen equipment as a collateral, meaning you’re borrowing against the equipment itself. This also results in paying little-to-no down payment.
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Use the best equipment
Whether you want to buy great quality used equipment, or lease brand new equipment, hospitality finance allows you to achieve this. The financial assistance helps you get great quality equipment, which helps make great food, which brings in great business. See?
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Make life easy for staff
Your staff appreciate being able to use top shelf equipment. So, if your kitchen is in need of an upgrade, then hospo finance is a solution.
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Tax benefits
Let’s not forget some of the big juicy tax benefits that come hospitality finance, if buying the equipment outright is your preferred method. You may be able to write off your equipment as a way to reduce your payable tax.
Flexikitch are Australia’s most dedicated bunch of kitchen equipment financiers, helping you lease or buy equipment to start your business. They have an incredibly broad range of products to choose from: everything from commercial ovens to blast chillers, from pots and pans to other utensils. Start the conversation with Flexikitch and watch your business grow.