Any franchise business that has a variety of different pieces of equipment will face regular challenges in trying to keep them up to date, operating efficiently, conforming to the latest technologies and ensuring optimum productivity at all times. The cost to purchase new equipment though can be prohibitive and this is where equipment leasing can be beneficial.
By adopting a leasing programme, a franchise can benefit from all the latest equipment whilst also maintaining a positive cashflow, as the leasing costs can be very competitive and easy to budget for. The required equipment can be leased or rented for a monthly budget over an agreed period. When the initial agreement comes to an end the franchise can choose to refinance the equipment for outright purchase, upgrade new equipment through a brand-new leasing agreement or simply return the equipment.
A franchise owner can take advantage of equipment leasing for several different items:
- Catering equipment
- Office equipment
- IT equipment
- Manufacturing machinery
- Fitness machinery
- Medical machinery
- Commercial vehicles
Equipment leasing can be an ideal solution for both franchisors and franchisees. Whether it is a well-established business or a new start-up there are options to suit all franchise types. The key difference between the 2 will be if it is a new start-up then lenders will look for a credible personal guarantee.
Here at NGI Franchise Finance, our team are vastly experienced with equipment leasing. In recent months we have enabled franchise businesses to secure leasing deals for catering equipment, office fit-outs, fast food outlets and dental practice equipment.
If you have any questions or would like some help, please call our business finance team us on 01993 706403 or e-mail hello@ngifranchisefunding.co.uk.