In our previous post on dishwashers, we talked about some of the different types of dishwashers that you could choose from for your business—but in this post, we’re going to focus more on how to pay for them.
The food service industry is a tricky industry to succeed in. There are a lot of challenges that need to be dealt with on a consistent, recurring basis—and sometimes these challenges are monetary. To put it simply, you might not always have a ton of cash on hand. If you’re facing any kind of financial challenge whatsoever, then figuring out how to buy even a smaller dishwasher might be causing you to feel some pressure.
Obviously, you need this for your business—but spending the money right now might not seem feasible.
So what can you do?
In this post, we’re going to look at three different purchasing options that you could use to pay for your new dishwasher—and we’re going to talk about why some of them might be a bit more advantageous for businesses that don’t have a ton of cash capital on hand.
Cash, loan, or lease?
This is probably the biggest question that you’re going to ask yourself after you’ve found the right dishwasher for you. Should you pay cash, should you lease it, or should you take out a loan and make payments on it? These obviously come with their own sets of advantages and disadvantages, but you may find a loan or a lease to be more advantageous in the long run—and here’s why.
Honestly, we all know that buying outright with cash would be easier—if the cash was available to spend. But the problem with this is that, in most situations, businesses don’t have a huge pool of capital just sitting in reserve. Even if you have enough cash on hand to buy a dishwasher outright, you may find that spending it will leave you vulnerable to possible unforeseen expenditures that may come up later.
This is where loans and leases come in. Leases may or may not come with a possible ‘lease to own’ option at the end, but many of them do—giving you the ability to make decisions about your future a bit later on while still getting to make use of the equipment in the meantime.
Loans can offer similar advantages—though they tend to be a bit more difficult to get sometimes, depending on who you’re getting them from. You may have to jump through a few hoops to get a loan, while leases can often be obtained very easily.
Which is the best for you?
If you already have outstanding credit and don’t mind going to a bit more trouble, then a loan may be able to offer you a really good interest rate. But if ease of use is what you have in mind, then a lease might be a better option for you in most cases.
If you have enough cash on hand to purchase your dishwasher without fear of running too low on funds, then buying the equipment outright might be an option to consider—but remember that buying outright ties up a lot of capital, and that leases or loans give you more money to work with now because they don’t require you to spend all of your savings. All you’re responsible for is a simple monthly payment—which can be budgeted in and planned on.
At any rate, try not to put off your purchase for too long. If your current dishwasher is on the fritz, then don’t wait until it breaks down completely to buy a new one. Remember… this is a piece of equipment that you need on a day to day basis. Trying to work for even one or two days without it could prove disastrous!