If you are just starting to look for commercial laundry equipment or looking to upgrade, there are several options available to you. If you are debating between leasing or buying, it’s smart to look at the benefits of both.
There can be advantages and disadvantages to going with buying or leasing. It will mostly come down to what will suit your needs most, fit within your plan, and your budget.
Leasing vs. Buying Commercial Laundry Equipment
Most distributors will have a variety of buying or leasing options available for you, so talk it over in detail before you make your final decision.
Buying
If you opt to buy your commercial laundry equipment, there are certainly some benefits to doing so. It makes sense to buy if you are a for-profit commercial laundry, like a laundromat.
Leasing equipment when you are in a pay-for-use business means you are still paying the leasing company every month. This will cut into your profits. Of course, if you do buy, you will want a good warranty and customer service situation.
There is less paperwork and complications when you buy your commercial laundry equipment. Plus, leasing may also require a lot of banking information, credit scores, and you may get refused or need a guarantor.
The machines will cost more in the long run, even if you lease-to-own them. You will end up paying a lot more money for something that you don’t own and can be taken back at any time.
Leasing
Leasing your commercial laundry equipment can also be beneficial. For a large organization that generates a lot of laundry every day, leasing is often a better option.
If the machines break down, they are fixed under the agreement that your lease provides. This is great if there are often problems, you need repairs or parts, or they need to be replaced.
If you have budgeting concerns, then a smaller amount of money going out each month can be much easier than coming up with a large lump sum. This can be great if you don’t have access to financing or have a bad credit score.
These machines can also be claimed as a tax expense which will help to offset the monthly payments you need to make. That means you may get much of the money invested through your lease, back.
Commercial Laundry Equipment
Which method you choose will be down to your situation, the budget you are working with, and the type of business you need the equipment for. Buying the machines makes sense if you are making money from them.
Leasing is great when you don’t want to worry about repairs and financing the entire amount of commercial laundry equipment you may need. Some companies just don’t have the time or the people to maintain and repair the equipment.
With a lease, you can often trade the machines up for a more advanced model over a period of time. This can mean you are always at the forefront with your equipment.
However, some leasing companies may have clauses that require the machines to be treated and used in a very specific way and may not replace or repair if they deem you crossed that.
Why not give us a call. We can help you work out which method will work best for you. RJ Kool has been supplying equipment to commercial laundries for the past 30 years. From very large 900+ plus washer-extractors with automated loading and unloading capabilities, no laundry is too large or small.
