Getting ready to open up a restaurant? Or maybe you’re already a restaurant owner and you’ve found yourself in a tricky situation and need a little extra funding to get through the month? Chances are you’ve already started shopping around for financing for all of your restaurant equipment and upgrades.
But what you might not realize is that not every advertisement, offering or “deal,” is actually accurate. Unfortunately, many financiers that promise restaurant loans are only advertising with near perfect prerequisites. In other words, nearly impossible for the average restaurant owner.
1. Restaurant Equipment Financing Calculators
When looking for financing, of course you want to know exactly how much your rates will be. You’ve probably already found a restaurant equipment financing calculator on some financing sites. But what you might not realize is that even these “calculators” aren’t accurate. Whether they have been created incorrectly, or they have been programmed with shady intents, the results you get back usually aren’t the result you’ll actually get.
What will my restaurant equipment lease payment be?
This is the most trustworthy and accurate equipment lease calculator available in the market. It's powered by the financing industries leading financial software. Click here for access to an equipment lease calculator tool to see what your restaurant equipment lease payments could be.
2. Inaccurate Restaurant Financing Offers
Something that is unfortunately common is restaurant owners mistaking get a lease proposal/offer for an approval letter for restaurant loans. However, the rates proposed in an offer is usually not the same as the rates in an actual approval letter.
Shady restaurant financiers do this intentionally to try and coerce an unassuming business owner into signing into an agreement before they have seen the actual rates they will be tied to for their restaurant financing.
Worse yet, many of these agreements are structured in a way to capture the first and final payments, with a “reasonable fee” if you don’t go through with the lease. And in those cases, the “reasonable fee” isn’t stated or is vague.
3. No Prepayment Penalties for Restaurant Equipment Leasing
When trying to get restaurant equipment leasing, you might have asked funding providers if they have a “prepayment penalty.” I’m willing to bet that they have told you that they don’t have a prepayment penalty, but they are probably leaving out a crucial detail.
Sure, there’s no penalty to paying off your payments early, but there’s no benefit either. You’ll still pay the exact same amount, regardless if you pay it all off in the first month or the entire duration of the lease.
4. Daily Payment for Restaurant Equipment Financing
There is a financing option called “daily payment financing” that some companies utilize. It’s not necessarily the worst option available, but there are usually better alternatives available. In fact, it could be a good “last resort” if you can’t get financing anywhere else. Generally speaking, the rates and repayments will be much higher than you could get from leasing restaurant equipment.
5. Trusting Kitchen Equipment Financing “Rates”
When trying to get restaurant equipment financing, most businesses want to know the rates for the financing. A financier that is only trying to get money out of you will give you a generic percentage, banking on the assumption that you won’t know how to calculate the rate on your own. What you should instead be figuring out is the actual payment amounts, and use that as a basis for comparing offers. Always compare your monthly payment, term, money due up front and the buyout at the end of the agreement.
When shopping around for restaurant business loans, make sure you are getting accurate information and from different sources. The last thing you want is to be swindled into an an expensive deal when you try to get a restaurant equipment lease.
What's my Restaurant Equipment Lease Interest Rate?
Use this equipment lease interest rate calculator to calculate what your annual percentage rate is on your equipment lease agreement. This restaurant equipment lease calculator computes the lease rate based on a known payment amount, lease amount, residual amount, and lease term. Click here to get access.
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