Company Information, Management & Operation

Leasing Restaurant Equipment: Pros and Cons

Last updated on Jul 1, 2024
Janine Jones

Are you a restaurant owner looking to open a new restaurant or upgrade your equipment without breaking the bank? Leasing restaurant equipment could be the solution you've been looking for. By opting to lease instead of buying outright, you can enjoy the benefits of having top-of-the-line equipment without the high upfront costs. We'll explore the advantages and disadvantages of leasing restaurant equipment to help you make an informed decision for your business.

Apply Now to Lease with Credit Key
Use these links to learn more about restaurant equipment leasing:

Advantages of Leasing Equipment for Your Business

Woman opening oven

For certain business owners, restaurant equipment leasing has major benefits. These are just some of the advantages to consider when deciding if leasing is for you:

  • Cost Savings: Leasing restaurant equipment allows businesses to acquire new and high-quality equipment without the upfront costs associated with purchasing. You might be able to afford a monthly payment, but not a large lump sum at the start. Leasing helps in preserving capital for other essential business expenses.
  • Up-to-Date Equipment: Whether you’re looking to lease the latest dishwasher or high-tech oven, leasing provides the flexibility to upgrade to newer and more efficient equipment as technology advances. This ensures that your kitchen is equipped with the latest tools to enhance productivity and meet customer demands.
  • Fixed Monthly Payments: Leasing offers predictable monthly payments, making it easier to budget and manage cash flow. This eliminates the uncertainty of unexpected maintenance or repair costs commonly associated with owning equipment.
  • Tax Benefits: Lease payments are typically tax-deductible as a business expense, reducing the overall tax liability for the restaurant. When you buy an item, you have to pay taxes upfront, but when you lease, you pay taxes each month (rather than in a large lump sum). This can result in significant savings over the term of the lease. However, keep in mind that you won’t be able to take a tax deduction for depreciation on the item with leasing.
  • Maintenance and Support: Many leasing agreements include maintenance and support services, relieving the restaurant owner of the burden of repairs and upkeep. This ensures that the equipment remains in optimal condition, minimizing downtime and maximizing efficiency.
  • Flexible End-of-Lease Options: At the end of the lease, you may return the product or buy it out depending on the terms. This allows you to either upgrade the product as your budget increases or keep the product that you may not have had the funds to purchase outright when you opened. Be sure to review the end terms of your lease before applying.

Disadvantages of Leasing Equipment for Your Business

Leasing paperwork

While leasing restaurant equipment can be helpful for some, it may not be the right fit for your restaurant. Learn more about the downside of leasing equipment below:

  • No Opportunity to Build Equity: One of the primary disadvantages of leasing is that you do not own the equipment. This lack of ownership means that you do not have any equity in the equipment and cannot use it as an asset for collateral or resale value.
  • Higher Overall Costs: While leasing equipment may provide a lower upfront cost compared to purchasing, over the long term, leasing can end up being more expensive due to accumulated lease payments and interest rates. If your credit score is on the lower side, you may end up paying very high interest rates on a lease, which adds to the overall cost of the equipment.
  • Limited Control: When you lease equipment, you are bound by the terms and conditions of the lease agreement. This means you may have limited flexibility to make modifications or upgrades to the equipment based on your business needs.
  • Long-Term Commitment: Lease agreements typically involve a fixed term, which means you are committed to making regular lease payments for the duration of the lease. If your business circumstances change or if the equipment becomes obsolete, you may still be obligated to continue with the lease or be charged a fee to terminate it early.
  • Potential Restrictions and Penalties: Lease agreements often come with specific terms and conditions regarding the use and maintenance of the equipment. Violating these terms can result in penalties or additional fees, adding to the overall cost of leasing.
  • Limited Tax Benefits: Depending on the lease structure and local tax laws, the tax benefits of leasing equipment may be limited compared to purchasing. For example, you may not receive a tax deduction for choosing energy-efficient models. Businesses should consult with a tax professional to understand the implications for their specific situation.

Leasing with Credit Key at WebstaurantStore

Leasing restaurant equipment can be a cost-effective option for businesses looking to upgrade their kitchen without the high upfront costs associated with purchasing new equipment. With financing through Credit Key, restaurant owners can access a wide range of leasing options as they shop for restaurant equipment online. This includes financing everything from commercial refrigeration units and cooking equipment to dishwashers and food prep stations. Here are some of the benefits of leasing with Credit Key:

  • Get a decision instantly. Checking your rate will not affect your credit score.
  • Pay 0% for 30 days and as low as 1% after 30 days.
  • Get up to $50K credit instantly with no early repayment fees.
  • Split your purchase into payments or up to 12-month terms (depending on the order total).

The flexibility of Credit Key's leasing solutions allows businesses to obtain the equipment they need without tying up valuable capital or taking on long-term debt.

How to Place a Leasing Order

Follow these simple steps to place a financing order at WebstaurantStore with Credit Key:

  1. Add qualifying items to your cart
  2. Select the Credit Key option on the cart page (located under the shipping calculator)
  3. Log into or create your Credit Key account
  4. Set the financing terms to complete the order

What You’ll Need for the Credit Key Application Process

To place a financing order with Credit Key, you will need the following:

  • Social Security number
  • Business owner name and email
  • Annual business revenue
  • Bank account details or credit/debit card
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Alternatives to Leasing

If you decide that leasing is not the option for you, WebstaurantStore offers some alternatives that might help you get the equipment you need:

Scratch and Dent

You can find commercial equipment with deeply discounted prices in our Scratch and Dent Outlet. These items have minor damages like small scratches and dents that are superficial and don't affect the performance of the equipment.


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When considering whether to lease restaurant equipment, it's essential to weigh the costs and benefits to make an informed decision for your business. Financing restaurant equipment through Credit Key offers a flexible and tax-efficient solution for businesses looking to upgrade their kitchen equipment. By exploring leasing options, restaurant owners can access the equipment they need to operate efficiently and profitably, all while preserving cash flow as they establish their new business.

The information provided on this website does not, and is not intended to, constitute legal advice. Please refer to our Content Policy for more details.
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Contact Customer Solutions for an estimate on proof lead times and production lead times before placing your order. Can I Expedite My Custom Order? Custom items cannot be expedited since they are made to order. What If I Get the Proof and I Change My Mind? Can I Cancel the Order? If you don’t love your proof, you may cancel the order at this point. However, some products will still have a sample fee or proof fee that is non-refundable. You will receive an email from the Customizable Team after the order is placed to approve any additional fees before moving forward to the proof process. How Can I Get My Image into the Accepted Format? The final image for the customization will need to be in Vector format. If you are working with a designer, they should be able to convert the file for you. Vector converters and instructions are available online and may vary depending on the image program you are using. How Many Colors Can I Use in My Custom Image? The number of colors you can use in a customization depends on the product you choose. The color limit will be clearly listed in the Design Considerations for that product. I Am a Plus Customer; Why Am I Being Charged Shipping? Each new customization order will have a shipping cost even for WebstaurantPlus accounts due to the time and effort they take to get set up with the manufacturer. However, each reorder you place for your custom purchase will have free shipping since it is already established in their system! Adding custom products to your establishment is a simple marketing strategy to build your restaurant branding and create recognition for your business! By familiarizing your customers with your logo or slogan through custom restaurant supplies, you can encourage impulse sales and enhance brand loyalty among customers.