Published on June 5th, 2014 | By Admin
Leasing out industrial kitchen equipment is a great option to improve cash flow, enhance profitability and make way to several advantages. Here is brief overview on the various benefits put forward by the approach.
As the operating cost related to the restaurant industry tends to have a considerable hike then it certainly affects the profitability. Hence, it is quite obvious that detailed attention is paid to the cash flow and in order to generate additional income one unique approach is to lease out the industrial kitchen equipments and this is indeed a helpful option for the restaurateur to cut down on the various operating costs to certain level and conserve the cash to some extent. It can be well observed that the industry has already started implementing the approach and many of the exponents have taken the initiative to lease out the different industrial cooking appliances at any given time.
There is a great utility of the approach for the end users too as they can easily use the different useful industrial cooking equipments without actually owning them and that indeed makes a great difference in terms of cost effectiveness. Let’s now find out how?
- The monthly payments diminish to a great extent with the lease approach and thus the cash flow improves greatly.
- The payment can be deferred till the leased equipments are being installed.
- It becomes easy to match the cash flow needs for the month with the payment
- One can easily get newer, better and more efficient range of industrial cooking appliances and thus one can derive better value no doubt.
- The bank credit line can be kept intact for more genuine requirements
- No waiting period towards getting approval for a loan by the banker
- As the equipments leased are not capital expenditures so there is no need to show them on the balance sheet and there is no way they would depreciate but still the energy rebates can be availed
- The monthly payment would be treated as expenses and so tax benefit can be availed even.
- After the term of the lease completes then one can easily move to new set of equipments.
- Another advantage is that the leased equipment can be brought for lower cost