If you’re starting up a coffee shop or need an upgrade in equipment then leasing a commercial coffee machine is often the most viable route to take.
Even if you have the money sat in the bank to buy a top quality coffee machine outright you ought to consider that most coffee related equipment needs changing every 3 to 5 years.
With that in mind it might make more sense to preserve your cash flow for other areas of the business such as barista training, business development and of course any unexpected circumstances.
Here are a few of the benefits of leasing a coffee machine:
Less Capital Expenditure
Buying a coffee machine outright can tie up a significant amount of capital. By leasing you allow your money to go further and spread the cost of your equipment over its useful working life.
If you buy outright, then the money has gone instantly, and in many cases you’ll need to upgrade the machine again in another 3-5 years which means another lump sum.
By choosing to lease you can significantly reduce your initial outlay and expenditure.
You Can Get a Higher Quality Coffee Machine
Many coffee shop owners who want to buy outright simply want the cheapest coffee machine available but that isn’t always the right machine for their business.
In many cases it won’t be able to handle the output they require or have enough group heads to cope with the demands of a busy lunchtime trade.
That often means the money they saved on the machine will be lost on disappearing customers.
By leasing a coffee machine you don’t have to make a decision based solely on price. Fixed, manageable monthly payments allow a coffee shop owner to get the machine they need and opens up the possibility of changing the machine part way through a lease should demand grow or the business expand.
Leasing rentals for a business are 100% tax allowable, which means that the cost of leasing can be offset against your pre-tax profits during a lease period.
This is because lease payments qualify as direct operating expenses rather than a debt or outstanding liability which in turn reduces your short term taxable income.
You can also reclaim the VAT on your monthly repayments (if you’re VAT registered). This makes leasing a very attractive proposition for both large and small businesses, especially during a recession.
Easily Upgrade to New Equipment
Many lease agreements allow you the flexibility to upgrade your commercial coffee machine to a newer or more advanced model should your business expand or an increase in demand require larger machine with more group heads to boost output.
Leasing is Easy to Budget & Forecast For
By choosing to lease a coffee machine you simply have a fixed monthly payment. This is a fixed agreement so won’t be affected by changes in interest rate. This allows you to budget accordingly and makes your cash flow projections much easier.
Free Up Overdrafts / Bank Loans
Leasing a coffee machine doesn’t tie up other sources of credit such as overdrafts or bank loans meaning you can use them in other areas of the business.
Quick Payback Period
The coffee that the machine produces is what makes you money, not the ownership of one.
If you lease a coffee machine you’re only paying a monthly fee, this means that the income generated from the coffee you make can quickly cover the lease amount. This isn’t possible with the large outlay of buying a machine outright.
All of our commercial espresso machines come with flexible lease terms, please contact us if you’d like any more details or if you require any advice on choosing the right coffee machine for your business.