At Holistic Hospitality Solutions, we see food as more than just nourishment. Food is also a source of entertainment and pleasure. Food is life. Not only do our clients — including restaurant owners, food operators and chefs — enjoy eating good food, but they also love providing the best dining experiences for their customers.

If you are one of these like-minded people and dream of opening a restaurant, franchise location or food service business in order to bring similar food joy to others, know that you’re not alone. However, we must warn you that one of the challenges you’re almost certain to encounter is the financing of your restaurant dream.

Many people choose to finance their restaurant and kitchen equipment through traditional methods like cash or bank loans. We’re excited to tell you about another option that many people in the hospitality industry don’t even know about: third party financing.

Why work with a finance broker for your restaurant?

Here are two compelling reasons why you may want to consider a finance broker:

1. Start off on the right foot. Third party financing allows you to choose the perfect piece of equipment for your business, rather than being limited to buying only what you can afford at the moment. Starting a restaurant or food company should not be taken lightly, and we encourage you to invest in the right equipment from the get-go.

2. Save your cash. In the hospitality industry, the ebb and flow of revenue comes with the territory. So it’s important to have sufficient cash on hand to prepare for the unexpected…just in case. For example, you may find yourself in need of cash for an emergency kitchen repair or to do some additional marketing during a slow period.

If you’re interested in working with a finance company that specializes in helping food service businesses get set up with financing solutions, we recommend Econolease. As Canada’s leading provider of financing services for the food service and hospitality industry, they make financing easy for everyone.

If you’re undergoing a big restaurant renovation or buying a new location, we recommend working with Econolease to help finance a portion of your project, like the equipment. If you’re looking to purchase a single piece of equipment or simply need an upgrade to an existing piece, Econolease can help you finance it all.

If starting a restaurant is a big meal, consider Econolease as the knife and fork. Econolease makes the meal more digestible, by cutting food into easy, bite-sized portions.

How does equipment financing work?

There are three main ways that businesses finance restaurant equipment:

1. Leasing
Leasing is the fastest way to get equipment into your kitchen. It’s frequently used by all types of food service operators, including franchises, chain restaurants and local stores like coffee shops.

A few facts about leasing with Econolease:

  • Leasing is convenient because credit applications are approved the same day, unlike at a bank where you typically wait weeks or months for your application to be approved.
  • Standard lease agreements range from one to five years, and monthly payments are set within your budget (and are also 100% tax deductible — bonus!)
  • Econolease offers low interest rates, little to no money down, and boasts the industry’s most affordable financing program in Canada.
  • You have the option to buy out the equipment, which can be either 10% of the cost of the lease or $10.00. At the end of the term, the equipment is fully paid for — and it’s all yours! Easy peasy.

2. Renting
Rental financing contracts are fully open, allowing you the option to buy out at any time (penalty free!), or simply return the equipment owing nothing more, after one year. This is the most flexible option as you can try before you buy.

A few facts about renting with Econolease:

  • 60% of every payment made gets applied as a purchase discount if you do choose to buy the equipment out.
  • Payments are small, affordable and weekly, making them easy on cash flow.
  • Once the 52 week time period is up, you can return the equipment to Econolease and walk away, or if you want to keep the equipment, you retain options to buy out, keep renting it or convert the contract into a standard lease agreement.
  • Renting is automatically approved up to $25,000 on serialized equipment.

3. Working Capital Loans
A working capital loan provides straight up cash to help restaurants with things such as inventory, renovations, marketing and other unplanned emergencies. Essentially, a working capital loan simply gives you funds, and you can spend it how you wish.

A few facts about working capital loans with Econolease:

  • Econolease provides short-term lending up to $100,000 for established businesses (who have been operating for more than six months) with affordable payments.
  • Working capital loans are approved quickly, in just under three business days, unlike at a bank.
  • Once approved, the funds are deposited right into your bank account. Easy access!
  • There are fixed repayment terms ranging from 26 to 52 weeks, but these terms are fully open so you can pay the balance of the loan at any time.

One More Major Consideration

Payment Processing
Investing in a strong POS system is crucial, as you want to give your customers the option to conveniently pay for things using the latest in debit and credit card technology. Fortunately, Econolease also offers payment processing, so you don’t need to obtain financing from a bank and then purchase a POS system on your own.

A few facts about payment processing with Econolease:

  • Econolease offers the lowest, most competitive processing rates in the industry.
  • Econolease sets everything up so you can accept payment from debit cards, all major credit cards and even gift cards.
  • All types of terminals are available including countertop, wireless long range, short range and virtual online processing.
  • If you want to change providers, no big deal. It’s easy to switch.

Whether you need to purchase cooking equipment, furniture, signage, a POS System or even Facebook ads, we encourage you to think outside the bank and consider getting help with your financing from a food service financing specialist like Econolease.

Even if you’re a brand new food start-up, Econolease is available to you. They work with everyone from small business owners to established operators, and they specialize in the food service industry.

On the fence? We recommend doing further research to help you select a finance company and find out more about financing restaurant equipment in Canada.

In a recent conversation with the Econolease team, they shared something with us that reminded us why we love helping those in the hospitality industry:

“We know the needs of restaurant owners from appetizer to dessert, and we love watching our customer’s dreams turn into realities.”

We couldn’t agree more.

Want to get in touch with Econolease? Contact them here.

Author Trish Hudson

Trish is the owner and principal at Holistic Hospitality Solutions. She aims to help assess her clients operations from top to bottom in order to gain efficiencies, save money, and increase their bottom line.

More posts by Trish Hudson