4 Ways to Leverage Equipment Financing to Grow Your Restaurant
There’s no such thing as the status quo in the restaurant industry. Things are constantly changing: trends, customers, costs, staff, regulations, opportunities, and the list goes on. As such, what often separates restaurants that thrive from those that struggle — even during lean times — isn’t a question of effort: it’s a matter of leverage. Luckily that’s where equipment financing enters the picture!
Here are four practical and profitable ways that restaurant owners are using equipment financing as leverage to grow their operations, now and into the future:
Frees up working capital to allocate elsewhere.
Equipment financing is paid back in affordable installments over the long-term, which means that restaurant owners can allocate their current working capital where it can deliver a higher ROI — such as expanding locations, hiring staff, and so on.
Keeps business lines of credit available.
Equipment financing allows restaurant owners to purchase the assets they need, but without tapping into their business line of credit — which can, therefore, remain available for emergency purposes or for urgent opportunities.
Offers a lower cost of borrowing.
The Internal Revenue Service allows restaurant owners to deduct 100% of the costs of equipment financing in the current tax year. This can measurably lower the cost of borrowing, which means more cash-on-hand — and ultimately, more leverage.
Provides a choice of vendor.
Some lenders — including National Business Capital — empower restaurant owners to purchase their equipment from any vendor they wish versus picking from a list of pre-selected sellers. This is a highly valuable point of leverage because it allows restaurant owners to shop around and get the best possible value and selection.
The Bottom Line
While each successful restaurant owner takes their own route to prosperity, there is one thing that they all have in common whether they offer quick and healthy meals, or gourmet fine dining by reservation only: they understand the critical importance of generating and exploiting leverage. Clearly, financing restaurant equipment is a core part of this growth strategy and a smart way to get more for less.
To learn more about obtaining the equipment financing that you need for your restaurant — regardless of whether you have been operational for several years, or launched within the last few months — contact the National Business Capital team today. Your consultation with us is free, and it’s not a deal-breaker if you have impaired or bad credit.
Or, if you’re ready to get started now then simply complete our quick, secure online application. We’ll be in touch within 24 hours to discuss next steps, and confirm how we can help you take your restaurant to the next level.