Can you buy Reconditioned Catering Equipment on lease? – YES YOU CAN!
Caterquip Leasing.
Buying new commercial catering equipment and kitting out a kitchen is very expensive.
Caterquip UK is a specialist supplier of reconditioned second-hand machines.
Our niche is giving clients access to those brands that every chef drools over, but can’t reach when brand new. From a single Combi oven through to a whole kitchen fulfilment,
Caterquip can supply and install commercial catering equipment and get you up and running without the eye watering costs of brand new prices.
Caterquip is licensed to sell commercial catering equipment on a lease-to-own basis.
Spreading the cost of your capital kitchen appliances gives your business many advantages. And you own the appliance at the end of the payment term!
Our lease associates, Oakfield Leasing, have been supporting our clients for years. Watch their intro video here. Knowledgeable, friendly and empathetic to you your business needs. They have a host of lending solutions and network of lenders.
Applying for a lease plan is easy and our Oakfield experts will guide you through the whole process. Their direct dial is 0161 905 3378.
Preserve your start-up capital for key things such as recruitment and spread the purchase cost of your high cost machine assets.
How Caterquip sets up your lease purchase arrangement.
5 Easy Steps.
- Once a purchase price is agreed, Caterquip asks Oakfield Leasing to call you direct to privately discuss your lease options. Like all lease arrangements, questions will be asked about your credit history and ideas on leasing options that could suit your financial status.
- Oakfield will send you some simple forms to complete and return. Oakfield then apply to a Lender who will then scrutinise your application and if all is satisfactory, will approve your application.
- Caterquip ask for a refundable 40% deposit of the total deal value
- We deliver your equipment when ready, and you sign your delivery acceptance forms.
- Once the Lender pays Caterquip in full, your deposit is fully refunded.
We have put together the following frequently asked questions to help inform you about leasing.
Should I pay cash or lease?
You may be able to afford to buy the equipment outright, but before you make this decision you must consider the following:
- All leasing payments are rental payments and as such are an allowable business expense, therefore if a business is making money the profit can be reduced by the amount of the rentals you pay each year, which in turn reduces your tax bill.
- Payments are normally the same throughout the lease contract. This means that increases in interest rates do not affect you and your cash budget can be utilised more effectively.
- Leasing enables you to protect your cash to use for other needs such as new stock, staff training, advertising, new business opportunities and unexpected expenses.
Do my payments increase if inflation or interest rates rise?
No.
Your monthly payment is fixed at the start of the lease and so is unaffected by interest rate rises. You can budget your cash flow more accurately. As inflation rises, because your payments are fixed, the cost of the equipment reduces in real terms.
Are there tax benefits associated with leasing?
Yes.
- Any business wishing to acquire capital equipment should look for the most tax efficient way to purchase.
- All lease payments are treated as an allowable business expense and therefore attract tax relief for the full duration of the lease agreement. Your accountant will be able to confirm this.
Should I go to my bank?
- Using your bank for all your business funding is not good practise.
- If you use your overdraft facilities you may leave yourself in a vulnerable position to react to any sudden needs for short-term borrowing.
- Another common problem is encountered when your bank decides to change the interest rate mid-way through a loan or reduce your overdraft facilities, which can dramatically affect the cash flow of your business. Sometimes banks will limit the amount they will lend to you without further security such as taking a charge on your home. It is not financially prudent to have all your eggs in one basket.
If you require a replacement Combi, Fryer or Fridge, or are planning to open a new kitchen, give Caterquip’s experts a call. We have a combined total of 84 years of expertise waiting to assist, plan, advise and bring your aspirations alive.
Give us a call on 01733 286000.
