How does professional coffee machine leasing work in the UK?
There are three ways to source a coffee machine for your business: leasing, rental and purchase.
Both coffee machine leasing and rental involve monthly payments for a fixed period of time, from as little as a year to as many as five years. Spreading the lease over a longer duration means lower monthly costs, but you’ll pay more overall. Renting works in much the same way, but leasing a commercial coffee machine offers one significant advantage over rental: at the end of the lease, that machine is yours with a final payment.
The advantages of leasing a professional coffee machine
Most businesses prefer to lease commercial coffee machines rather than buy new machines. Unless your company credit rating is iffy or you’re already carrying an excessive amount of debt, the benefits of leasing a machine outweigh the benefits of buying.
- The big benefit relates to tax. Commercial coffee machine leases are 100% tax deductible, whereas purchases aren’t. For more information, read our guide to the tax benefits of leasing a coffee machine.
- Because you pay a fixed monthly sum – at a fixed interest rate throughout the lease duration – you gain cost certainty on outgoings.
- At the same time, you’ve kept maximum working capital in the bank – or avoided borrowing from the bank, which means that credit could still be available to you for other purposes, like furniture or refurbishment.
- Choosing a shorter lease can mean higher monthly payments, but it also means you reach the end of the lease sooner, at which point you can either buy the machine (often for only one month’s extra payment), extend the lease, or upgrade to a different coffee machine
- In that respect, it’s almost like buying a new coffee machine, except you get to test it first – and if, after a year, you think you need a faster coffee machine, you can transfer the lease to another machine. That’s especially handy for new coffee shops and pubs who don’t yet know what coffee take-up will be with customers.
How much does it cost to lease a coffee machine?
The short answer is that it varies according to the machine. You can lease bean-to-cup machines or commercial espresso machines with a wide range of designs and features, so you’ll always get a bespoke quote according to the machine you choose.
As well as the machine, you’ll often get water filters, knockout drawers and barista kits included in the lease, plus at least a year’s free servicing, covering labour and parts. It’s always possible to buy an extended warranty for greater reassurance. Machine delivery should be included, and reputable coffee machine leasing companies will set the machine up for you and give you free introductory basic barista training using your new machine.
What about supplies?
It depends on the leasing arrangement. You can add coffee beans, hot chocolate and tea, takeaway cups, stirrers, sugar, sweeteners and, of course, special coffee machine cleaning fluids and supplies too. But be wary of hefty discounts on the machine lease while tying you in to minimum-order monthly coffee supplies – you’ll usually find you’re paying well over the odds this way.
For an open and honest discussion about the advantages of leasing your next professional coffee machine, and to find out which machine would suit your business best, please do feel free to give us a call on 0800 840 9023 or email info@nationwidecoffee.co.uk.