You can choose to use leasing or hire purchase to fund almost anything, from the taps at the bar to coffee machines, commercial dishwashers, fixtures and fittings and games equipment. Leasing allows you to acquire brand new equipment quickly on a flexible basis.
If you’re thinking about using leasing, here are our ten top tips:
1. Shop around
You don’t have to use any particular provider – shop around. There are several providers that can help with your needs, from banks, to smaller specialist lenders, to the equipment manufacturers themselves. You can choose the best deal and best provider for you.
2. It’s not just for “big kit”
Leasing and HP aren’t just for cars or “big kit”. Many pubs make use of leasing and hire purchase for smaller fixtures and fittings, including furniture and décor- it can provide a cost-effective way of achieving a refurbishment. Speak to your provider to find out how they can help.
3. Make sure the terms work for you
Leasing and HP are designed to be flexible- often you can choose the terms which suit you, including how much deposit you are willing to pay, the length of the agreement, and the monthly payment. This way, you can achieve predictable monthly costs, which can help with budgeting.
4. Read the small print
Just like an overdraft might not be the most appropriate financing solution for your needs, leasing might not always be the right choice. Make sure you read the small print to understand what is and is not included, what your rights are if you want to leave the agreement early, and what you will be paying throughout.
5. Make sure you know what happens at the end of the agreement
You don’t always own the asset at the end of the agreement. Make sure you understand whether you’ll be returning it at the end of the agreement, whether you’re allowed to keep it, and whether there are any fees or secondary rentals.
6. Look for industry codes
All members of the FLA are signatories of our Business Finance Code and have signed up to our complaints process, giving you greater peace of mind if something goes wrong, and assurance that they will always uphold the highest standards of customer care.
7. Specialists can help
Many funders have extensive experience working with pubs and restaurants and specialise in this area. They can take the time to really understand your needs as a business. Some may be able to offer additional services, like equipment installation or maintenance, or insurance products.
8. Consider speaking to a broker
A commercial finance broker might be able to find you an even better deal, as some funders don’t provide their products directly to customers.
9. Look at your existing agreements
If you have existing agreements a new funder may be able to help roll up or buy out these agreements as part of a new deal. If you opt to do this carefully consider the costs and ensure you understand the structure of any new deal.
10. Ask for help
You can get help for your business either through Government schemes such as the Coronavirus Business Interruption Loan Scheme, the Bounce Back Loan Scheme, or from trade associations like the Forum of British Pubs. It’s always a good idea to get as much advice as you can, whether it be about leasing or more general business advice.
For more information, please visit the Finance & Leasing Association website: www.fla.org.uk.