Do I buy or rent or lease my catering equipment? There’s no denying, you need it, but what’s the smarter choice?
First, before you investigate how you’re going to pay for your catering equipment, make sure you’ve done a full and proper assessment of your needs. Be sure to take inventory of all the activities you perform and make a note of each catering equipment needed to complete that function. If you are involved in specific types of functions (eg weddings), be sure to identify any catering equipment specific to that type of function. Whenever possible, also identify any specific time-saving devices or equipment that, while they may have an initial outlay, can pay for themselves very quickly in time savings. It’s also critical that your catering equipment purchases meet your industry’s health and safety standards, so be sure to do your research before committing to any purchase.
Be careful not to go crazy on nice items unless you can afford them. Start with the basics and you can always add to it as you go.
Ok, so you have your ultimate list of required catering products. So what are the benefits of buying the equipment other than a rental or lease plan? Well, number one, of course, is that it’s yours, or perhaps more correctly, the company’s asset. This means that, in most cases, it is a trading tool and would therefore attract tax benefits. When purchasing catering equipment, you also have access to a huge range of products, whereas if you choose to rent or lease, you may be limited to only a select range. The freedom to choose your own products means that you then have the option of buying new or second hand. It also allows you total freedom when it comes to selecting styles or colors. Do you want a range of traditional catering equipment or something more contemporary? Another consideration is the brand of the product. Are you willing to invest in equipment made by a shell company, or maybe you’ll pay a little more for products from a well-established company that you know provides the post-purchase support you may need? Well-established brands also often offer product warranties and even maintenance plans that can give you peace of mind.
Choosing to purchase your catering products also means you may be eligible for a volume discount or even a cash discount. If it’s volume you need and you can do it in cash, then you can benefit from considerable savings.
So, to maximize your tax benefits and have complete freedom of choice and potential savings, consider purchasing your catering equipment over rental or lease options.
