If you are looking to start up a new laundromat, need new equipment for an existing one or are looking to open a new location, you may be looking for equipment. If you do not have the cash to buy all of the equipment you will need, such as washers, dryers, change machines, soap dispensers, laundry carts and folding tables, you may be trying to determine what your options are. When you don't have a lot of cash on hand, but you have some, you may be able to buy used equipment. If you do not have enough money for that, or want new equipment, your options are to get a business loan or lease the equipment. Learning what the pros and cons of each option are can help you decide what you should do. Here are a couple of the pros and cons of leasing laundromat equipment.
The Cons of Leasing Laundromat Equipment
- Can Be Costly
One of the disadvantages to leasing laundromat equipment is that it is typically more expensive than buying it outright. If you have the budget to be able to buy the pieces, you can typically buy them for less than your monthly leasing payments will amount to over the terms of your lease. However, while it may be more expensive, leasing is a better option than having no equipment at all.
- You Are Still Responsible for Maintaining the Equipment
The other disadvantage to leasing laundromat equipment is that you are responsible for maintaining and repairing it. Think of it liked a leased car. You may not own the car, but you drive it, so you have to change the oil and repair the brakes as needed. The same is true with leased laundromat equipment. You are still responsible for maintaining and repairing it, even though you don't actually own it.
The Pros of Leasing Laundromat Equipment
- Easy to Lease
The biggest benefit to leasing laundromat equipment is that it is typically fairly easy to do. You do not have to have the best business credit, nor does your business need to be established. This is because the equipment can be repossessed or picked up if you fail to make the lease payments, meaning there is little risk for the company leasing you the equipment. The benefit to you is that you can get the equipment you need as a new business or a business with bad credit.
- Money May Go Toward the Purchase Price
The other advantage to leasing the laundromat equipment is that , in many cases, you can buy the equipment at the end of your lease term, with some of your payments going toward the purchase price. This gives you time to save for the purchase of the equipment that you are leasing, if you so choose.
Opening a laundromat can be a lucrative business. But it can also be costly to start. Leasing equipment can help you get started in the business by providing you with the equipment you need. For more information, check out the sites of local laundromat equipment suppliers.
