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Tips On Leasing Restaurant & Bar Equipment
What is the tax benefit associated with leasing?
On your new equipment purchase you may be eligible to take advantage of Internal Revenue Code Section 179 for the current tax year. Section 179 allows you to deduct up to the annual maximum of your qualifying equipment purchases from your taxable income. Your first year's tax savings could exceed your first year's lease payments! In addition, you may be eligible for additional state and local tax incentive deductions. You should seek specific advice from your tax accountant. |
Can my lease be cancelled or paid off early?
| Leases are non-cancellable. However, you can pay off your lease at anytime, although we recommend you consult your tax accountant on any benefits of doing so. |
What is the interest rate on this lease?
| Since you are leasing and not taking out a bank loan to finance your purchase, there is no “interest rate” as we usually think of one. It’s more like leasing office/retail space. You’re paying for the use of the equipment, with the monthly payment amount based on the type of leasing plan you choose, the terms of the lease, and the cost of the equipment. |
What should I do if I have service problems with the equipment that I leased?
Call Durable at 727-359-9887. The manufacturer providing the durable equipment is solely responsible for any service issues during the warranty period. Many manufacturers have extended warranty or extended service contracts available to purchase at additional cost.You should discuss those options with your sales consultant when you purchase the equipment. The Lessor’s role is to assist you in financing the equipment, the same way a bank would finance a car or truck. |
Why do they request my personal guaranty?
| The credit manager makes fast, accurate credit decisions based on the limited information requested on their convenient credit application. They check publicly-available information, and have found that credit bureaus are the most accurate and reliable. They’ve also found that smaller businesses have payment practices similar to those of their principals. |
What is the Documentation Fee?
| The Lessor does not charge an application fee. They do, however, charge a nominal fee for processing the lease documents and for the fees incurred with filing UCC-1 financing statements. |
Why am I required to have insurance on my leased equipment?
Since the equipment is owned by the Lessor and the lease is for the use of the equipment, you must guarantee that if the equipment is destroyed or stolen, your lease will be paid off from the proceeds of the insurance policy. Most commercial policies cover leased equipment; all you need to do is have your insurance agent forward to the Lessor an endorsement at no cost to you. |
What taxes am I responsible for?
In most states and some county and local jurisdictions, the Lessor is required to pay sales and/or use taxes on each monthly payment. Since the lease payment was calculated in advance, and these rates change from time-to-time, this amount is billed separately. In certain states, the full amount of taxes is due at the inception of the lease, and the responsibility to do so falls on the Lessor. In these situations, the tax is added to the equipment cost to calculate your monthly payment. Many states also charge an annual tax on tangible personal property. Since the Lessor is the legal owner of the equipment, they are required to pay this tax.(Our partner’s lease rates do not include these costs.) They pass this cost on to you in a lump sum. Again, these taxes change periodically and are not included in the calculation for the base monthly payment. |
Leasing and Financing
It’s all free, easy and secure. Durable North America offers more payment options for your equipment financing needs. Durable has partnered with Creative Equipment Funding, and Manitowoc Finance to give you multiple equipment financing options. Manitowoc's 0% Financing Promotion is helping Foodservice equipment suppliers in the U.S. win in a down economy. Free application. With low-rates, terms up to 84 months, expert assistance, and online applications, our partners provide a one-stop shop for your equipment financing needs and you can conveniently apply online today. Leasing and Financing Features: · Planned equipment upgrades· Single items; minimum $1000 purchase required· Entire food service kitchens· Equipment, cases, fixtures and refrigeration for supermarkets· One convenient monthly payment for financing term on total purchase· Tax incentives |