Cabo’s Restaurant Equipment Leasing Options
Lease Restaurant Equipment
Our various leasing structures provide restaurants easy and cost-effective means for securing the equipment they need for their operations. By outfitting your restaurant kitchen with leased equipment you are able to keep valuable cash on hand for other needs, a factor that can be invaluable for start-up restaurants. Leasing provides this benefit through low advance payments and fees, and by spreading out low monthly payments. If you were to try to purchase similar equipment with a bank loan, you would likely have to make a substantial down payment on the equipment, and would find that bank loan monthly fixed payments are generally higher.
Additionally, restaurants can save even more money on their leased equipment by taking advantage of valuable tax deductions in the tax code. Depending upon your restaurant’s tax situation, you may be able to deduct as much as 100 percent of the full cost of the leased equipment from your restaurant’s gross income. (Of course, speak to a qualified tax professional to determine what deductions may be applicable for your operation and equipment.)
Cabo’s leasing programs makes it easy to finance the equipment your restaurant needs. You can access up to $150,000 worth of equipment with a one-page application, or up to $1 million with more detailed financials. We maintain a strong focus on financing lease-to-own equipment to newer restaurants that have yet to establish a strong credit history, and with operations that may have a less-than-stellar credit score. Cabo is able to offer this financing via its partnership with funding entities that offer innovative, variably structured financing products.
To take advantage of Cabo’s leasing programs simply fill out the online one-page application and receive a pre-approval within minutes. Or, should you have questions, just give us a call. In either case one of Cabo’s account executives will reach out to you to coordinate product selection, lease-to-own options, and provide you with a detailed quote and spec sheet tailored to your specific needs. To initiate the lease, Cabo’s programs generally only require one advance payment along with a documentation fee.
And remember, once Cabo has receipt of all scheduled payments, the restaurant equipment is yours free and clear. Depending upon the equipment, this may mean years of cost-free service (absent any maintenance) that will help your restaurant grow its bottom line earnings.
Lease versus Loans
The benefits of leasing
Cabo offers various leasing options that can provide your restaurant with an easy and cost-effective means of outfitting your kitchen with needed equipment. In considering the benefits of a lease from Cabo, you should understand the differences between a lease versus a loan. The primary difference between the two is that a loan represents the borrowing of money while a lease represents a rental agreement providing for the use of specific equipment. Both serve as means for financing, and as such, come with benefits and limitations.
For example, loan rates are usually variable because they are based on the Prime Rate, LIBOR or other recognized interest gauge, while lease rates are usually fixed for the life of the lease. Thus the loan rate is advantageous during periods of falling interest rates, but not beneficial when interest rates rise. Leases take the uncertainty out of the equation, while also providing an ad-vantage when interest rates rise.
- Payments generally fixed for the life of the lease
- Purchases, including soft costs such as shipping, installation and taxes, are completely fi-nanced
- Minimal fees
- Wide variety of terms, purchase options and down payment amounts
- Lease programs up to $75,000 with simple application
- Quick approvals, with more than half of approvals confirmed within 24 hours
- No collateral beyond equipment being leased
- Generally no restrictive covenants