Guide explains advantages and benefits of finance packages
Covid-19 has put much of the foodservice industry put into severe economic distress. However, operators still have to invest in equipment – and leasing is proving to be an increasingly popular way to spread the cost of the investment. It can also provide several other benefits. However, some caterers are struggling to find basic information, or they are unsure about how leasing works. That’s why FEA has put together a Guide to Leasing, which looks specifically at leasing foodservice equipment and is available to download for free from the FEA website.
The Guide looks at the benefits of leasing and considers some of the alternative finance options, such as hire purchase. A ‘frequently asked questions’ section covers a variety of areas, such as VAT and tax benefits. It also talks about what to look for in the small print, to avoid any issues.
“When times are tough, finding the cash for a new commercial fridge, oven, dishwasher or other professional appliance can be tricky,” says Steve Hobbs, chair of FEA. “This is where alternative finance options, such as leasing, come into their own. In fact, the Covid-19 crisis has led to the development of increasingly flexible finance packages, notably with features like low-start payments or even payment holidays, especially at the beginning of the arrangement, designed to give the operator a leg up to help build business.
“The FEA Guide to Leasing gives operators the information they need to know.”
Alternative finance options also help operators overcome budget restrictions that otherwise might prevent them from buying the best equipment. Why invest in the best equipment anyway? If something needs replacing, why not buy a cheap substitute, or even go second hand? Because modern, quality equipment is going to make economic sense not only in the long term, but also in the short and medium term, too. The latest model will be more energy efficient, so it will have lower running costs, which will save money, from day one. It’ll improve productivity, so operators will be able to cook more, wash more, store more and so on – again, from day one. Because it will save time, staff will be able to get on with other tasks. It will probably be more compact than an older model, so it’ll save space, too. Plus, a quality appliance will last longer than a cheaper version.
“Investing in good quality equipment is the best way to enhance your business,” says Hobbs. “Leasing, and other alternative finance options, are a great way to benefit from the latest models – in fact, with many leasing arrangements, you can upgrade equipment during the lease to a newer model, to help you stay ahead.”
The FEA Guide to Leasing is available to download from the news section of the FEA website.