If you’ve made the smart decision not to tie up capital in catering equipment, you now must weigh the option of renting against the more common financing option: leasing.
While leasing may look like a good idea at first glance, you need to take into account the full impact leasing kitchen equipment will have on your business.
Leasing Silver Chef Rent-Try-Buy®
× Four-year fixed contract - Off-Balance Item
× On-balance item - No Director’s guarantee required
× Director’s guarantee required - Buy with 75% rebate on the rent you’ve paid
× No discounted purchase option - Return or continue renting (& lower the
× Stuck with the equipment purchase price)
Leasing requires directors’ Guarantees – which puts your personal assets (your home) on the line. Our rental agreement does not require Directors’ Guarantees.
A lease is a balance sheet item – which reduces your equity, your ability to borrow and, accordingly, your availability of working capital. Rent is an 'off-balance' sheet item (like salaries or electricity). This means that rental contracts have no impact on your equity, or on your ability to borrow.
A lease requires a lot of paperwork and binds you into a four year contract. This contract makes it difficult to trade or sell your equipment when it comes time to upgrade your kitchen. A Silver Chef Rent-Try-Buy® Agreement involves minimal paperwork, meaning you can get the equipment you need immediately – and upgrade whenever it suits.
As you can see, renting offers a level of flexibility that neither purchasing nor leasing can match.
To learn more about how our equipment rental option can improve your availability of working capital – and, accordingly, increase the rate of growth of your business – contact us today!
Want to know what your repayments would be? Check out our Rental Calculator.