Running a hospitality business, whether it be a restaurant, café or eatery, is all about having the right tools for the job. At SilverChef, we strive to make it easy to get equipment and fittings that are affordable and efficient, having provided flexible equipment funding solutions to thousands of Aussies since 1986.
When you initially sign up, you agree to a 12 month plan, but what happens when that comes to its end? SilverChef has a number of options on offer, and best of all, you can mix and match on individual pieces of equipment (rather than on contracts) to give you ultimate flexibility for your business. Here's an overview of the various options you have available to you after the initial agreement, to help you figure out the best tailored arrangement for you:
1. Easy Own® plan
This is one of the most popular options for customers because it has many benefits and puts you on track to owning equipment that works well for your business. This is often the route for pieces that have high yield, such as built-in benches and shelving that you don't want to rip out or change. You can chip away at the payments bit by bit, without digging into your cash flow or capital, and at the end of the 36 month plan, you can feel confident knowing you own the equipment outright and any outstanding security bond is refunded to you.
There are many advantages to this solution. Enjoy significantly lower payments and secure the equipment now and pay it off bit by bit, offering a more cash flow-friendly solution. The SilverChef difference also means you have no exit fees, no early termination penalties and no balloon payments at the end of term. The only restriction is that you can't return or upgrade the equipment.
2. A) Continue renting - 12 month re-commitment
If all of your equipment and fittings are working fine, but you think you may want to change down the track or you aren't sure the equipment is suitable for your business, another solution is to keep renting. There are two options in this case – a 12 month re-commitment with a loyalty discount, or go week by week with the existing option until you are ready to make a change.
The 10% loyalty discount is suitable for those who know they will want the same equipment but want the flexibility to upgrade at any point. For example, you run a fish and chip shop and the freezer works great, but business is growing steadily and you may be overflowing in 6 months – but you're not quite ready to upgrade just yet. This option means the equipment remains as a rental, but the cost is reduced. You can upgrade at any time, which is helpful if you are waiting for more money to upgrade or waiting on a product that is not yet available.
2. B) Continue renting – week to week
Continuing with renting on a weekly basis is ideal for those who may want to upgrade, change or return equipment, but are still making this decision. It is recommended for those who do not know what they want to do but know they will make a change in less than a year's time. There are no changes made to your agreement, and you just roll over week to week.
3. Upgrade or change equipment
Your first 12 months are your chance to assess whether all the equipment you have is right for you. You can evaluate the quality of an item, whether it is too big or small and if there is anything new on the market. If you decide something you have isn't working for you, you can choose to upgrade to something bigger, better or newer, or change it to something different if you don't need that specific product anymore.
SilverChef recently helped a husband and wife team, who owned a milk bar in a regional location. Their venue sold ice-cream, cake and coffee and was very popular. However, three months after opening, a franchised ice-cream venue opened up three doors down from them. More and more, customers chose the branded name over the independent, and although the owners persevered, they struggled to compete for customers against the franchise. The milk bar's other offerings were popular though with the crowds and there was healthy demand for coffee, cakes, chips and burgers. Using SilverChef's flexible funding, they used the return option successfully and downsized their ice-cream cabinet. Their other equipment was running at maximum capacity, so they upgraded from a 2 group coffee machine to a 3 group. To cope with demand, the couple also got an extra fryer and cake display. This aligned to their business' champion food lines and meant they could increase their output. Through SilverChef's unique offering, the business was able to save money and boost profit, meaning their cash flow improved and was available in the business for other equipment, better produce or a larger space.
4. Return unused equipment
Unlike other funding options on the market, SilverChef allows you to return equipment after the short 12 month agreement. Don't get stuck paying for unsuitable equipment for your business!
5. Purchase equipment outright
If you decide you want to keep your equipment and don't want to commit to a 3 year plan, another option is to purchase any piece of equipment outright. This option is perfect for those where cash flow is not an issue in their business.
For example, if you run a busy restaurant and don't see your fixtures needing upgrades or changes after the first year, you may have enough capital to make the investment of owning. This is a great option and will allow you to purchase the items with a significant rebate. However, this option does have fewer benefits than the Easy Own® plan and payment is required in one lot. This is not as popular of an option, but it can have some advantages depending on your businesses current status. Remember, when you get to the end of your contract, you should be assessing the needs of the business and how your equipment is working to grow your business so you can decide what works and what doesn't. You can use several of the above solutions for different pieces of equipment to mix and match to suit your needs. Each asset is considered on an individual basis, so don't feel like you have to commit to all or nothing!
The Loyalty Team will contact you near the end of your contract to discuss your options. However, feel free to get in touch with us via the form on the right if you have any questions. Now is the perfect time to discuss your options and find the best solution for you.
Like the sound of all of this but haven't got any equipment yet? If you are looking to join the SilverChef family, contact us or apply now!