Certain commercial restaurant equipment are better suited for leasing than purchasing outright. Items like commercial coffee makers, dishwashers, and ice makers are all ideal for leasing instead of buying new. A big benefit of leased equipment is that it can save a significant chunk of change when opening a new restaurant. Here are the basic steps of leasing Manitowoc SDT3000W Ice Maker.
Description of Manitowoc SDT3000W Ice Maker
- Quadzilla™ Ice Maker
- Cube style and water-cooled
- Self-contained condenser
- High-pressure water regulating valve, 48″W x 31″D x 36″H
- A production capacity of up to 3000 lb/24 hours at 70°/50° (2558 lb AHRI certified at 90°/70°)
- Stainless steel finish
- Dice size cubes
- 5 HP, NSF, cULus
Benefits of Manitowoc SDT3000W 48″ Full-Dice Ice Maker
- Increases ice production up to thirty percent or more
- Standalone product
- No electricity required
- Lowers KWH consumption by up to thirty-percent
- Easily connects to cold water feed line
How restaurant equipment leasing works?
Leasing an ice maker or any other restaurant equipment enables a business to access the required equipment without buying it. Restaurant equipment leases typically range between one and five years, and payments are made monthly for the contract period. Restaurant owners can pay a lease off early; nonetheless, that will not always save money since the whole sum of the lease payments is still typically due. Some lenders provide early payoff discounts, but this is unpopular. Unlike a loan, leased restaurant equipment ownership does not automatically transfer to the lease when the lease ends. There are various types of leases, some of which enable lessees to buy equipment at a bargain price at the end, while others do not. Whether this is an option and how much the lessee is needed to pay to buy the equipment varies by the type of lease.
When to lease restaurant equipment?
Whereas some businesses will opt to buy equipment instead of leasing it, there are various cases where leasing an ice maker is more sensible from an economic perspective, mainly with some equipment leases offering the advantages of ownership combined with the flexibility of leasing.
Businesses opt to lease restaurant equipment because it enables them to:
- Frequently upgrade equipment: A shorter-term equipment lease will enable you to upgrade Manitowoc SDT3000W Ice Maker as often as per year.
- Get approved with lower qualifications: Equipment leasing generally has a lower barrier to entry for borrowers with poor credit rating and new businesses, making it a great way to fund restaurant equipment with bad credit.
- Keep monthly payments lower: The majority of leases enable smaller payments either since you are not paying the full balance on the equipment or since the lease has an optional balloon payment at the end.
- Lower initial expense: Compared to buying outright, leasing restaurant equipment allows for small upfront costs, with zero down financing available and down payment of ten to twenty percent being common.
- Take advantage of manufacturer incentives: Dealers and manufacturers will provide same-as-cash lease terms and special discounts in many cases.
- More flexible terms: Leases have much more flexible repayment options compared to equipment loans, with deferred, seasonal, and step-up payments (where the payment grows over time) commonly available.
Restaurant equipment leasing terms
Terms on leased restaurant equipment will vary based on the kind of lease and the borrower’s creditworthiness, and the equipment’s (Manitowoc SDT3000W Ice Maker) economic life. For instance, a new ice maker will have a longer remaining life and will be eligible for longer terms as compared to a used one. The kind of purchase option negotiated- if any- will be based on creditworthiness as well.
Some restaurant equipment leasing terms include:
- Purchase option: Many leases define a buyout amount or a bargain purchase option, usually either 10 percent or $1, payable at the end of the lease to own the equipment. Otherwise, the equipment might be bought at a fair market value.
- Length of the lease term (generally two to five years): Most leases will vary between two to five years. Nonetheless, leases might be available for as little as six months and as many as seven years.
- Repayment frequency: Apart from the monthly payments, more flexible options might be available, including deferred payments and seasonal and step-up payments.
How to lease a restaurant ice maker?
Here are the basic steps of leasing Manitowoc SDT3000W Ice Maker or any other commercial restaurant equipment.
Step 1: Shop around for quotes on ice maker leases
There are many companies that deal with restaurant equipment leasing. Together with the monthly fee, find out what services the lease offers. How often will the company clean or service the equipment? Will they deliver the appliance and set it up (usually most leasing companies will do this).
Step 2: Compare leasing and purchasing new and used equipment
These are the three main alternatives you have when purchasing equipment for a restaurant. Tally the total cost for the lease over the cost of a new piece of equipment. You might pay a heck of a lot more for a lease than if you bought the piece new. And of course, purchasing a used restaurant ice maker is usually the cheapest route. Nonetheless, you need to consider that used equipment does not usually come with a warranty, and you might end up paying more than maintenance in the long run.
Step 3: Go through the fine print of any restaurant equipment lease
Check how long the lease is for and what happens if you have to terminate it early. Most restaurants fail within three years, thus signing a five-year lease on an ice maker might not be the best idea.
Step 4: Be prepared for a credit rating check
Leasing commercial restaurant equipment will require the same credit checks as leasing a new car or applying for a bank loan. If your credit score is less than perfect (which appears to be just about everybody these days), you might be approved for a lease or might have to pay a higher interest rate.
How to qualify for restaurant equipment leasing?
Restaurant equipment leasing is a great alternative for restaurants that want to separate their resources, equipment, and working capital to hire the best staff and operations. Applying for a restaurant equipment loan is not much different than applying for any other equipment loan. In this situation, you will need a few common financial characteristics similar to other financial loan applications. When applying, you might have to provide:
- Proof of time in business (Top Financial Resources will finance startup restaurants)
- Credit score over 625
- Availability funds (proof of liquidity)
- Available collateral (to be used if you have a poor credit score under a 600)
If you apply for restaurant equipment leasing with Top Financial Resources, you will probably not be asked for extra collateral. We understand that asking for collateral for a loan can be intimidating. We want to offer restaurant startups with opportunities, not scare them away. We typically approve restaurateurs with just one-page application up to $200,000 financing, and we have the best leasing programs for startup restaurants.
How to qualify for a restaurant equipment loan with a local bank?
At first, though, when funding your restaurant equipment would be to go to a local bank. This might not be the best option for your restaurant equipment leasing program. Local banks have harsh requirements and intense screening processes just to determine if your restaurant is eligible for a restaurant equipment loan. Be ready for an audit. Local banks will request you to submit your financial statements, licenses, two years of tax returns and put a lien on your entire restaurant. They make it very hard to get additional financing in the future for your restaurant. In your contract with a bank loan, they will not let you get more financing elsewhere without their permission. And if you do, they can call your loan and make you pay the entire amount of the loan on the spot.
These severe guidelines are the reason many people opt to file for restaurant equipment loan with equipment leasing companies such as Top Financial Resources. No blanket lien requirements and less pressure create a better, more relaxed restaurant equipment leasing experience. Use your bank for cash loans only and allow equipment leasing companies to do what they are good at leasing and financing equipment.
Final thoughts on leasing Manitowoc SDT3000W Ice Maker
With restaurant equipment leasing, you will get to finance 100-percent of the equipment’s cost with a flexible plan that suits your budget. Include shipping, taxes, warranty, and installation. We have financed everything that is tangible and mission-critical for a restaurant, including point of sale systems, kitchen equipment, bar equipment, furniture, fire suppression, and TVs. You can even get working capital included on the same equipment lease term. Add working capital up to 25-percent of the equipment cost to your lease agreement to put some low-cost working capital in your pocket with fixed monthly terms. At Top Financial Resources, a leading equipment finance and lease company, we are committed to helping you get your restaurant financing needed for all of your equipment efficiently and promptly.
