As we are all aware, it’s imperative to keep a hotel, bar or restaurant looking its best in order to keep the drinks flowing, customers consuming, praising, recommending and returning. In the digital age, it’s even more important since a poor review mentioning shabby (minus the chic), tired or outdated furniture can be catastrophic, especially to a smaller establishment who would struggle to come back from such a blow to their reputation.
So, you are faced with a number of considerations, the need to keep your establishment and furnishings in excellent condition, keeping up with the latest trends and having the available cash to sink into a large expensive refurbishment project - what do you do?
The answer is simple, why not lease your new furniture? In this fast-paced, competitive world where it’s so easy to fall behind, leasing is a fantastic solution that both independent hotels and restaurants as well as the multi-sited operators regularly take advantage of and here are some of the reasons why:
1. Spread the Cost
High-quality contract furniture is not cheap. Choosing cheap alternatives is a false economy as you will only find yourself with tired looking furniture that will need replacing much quicker than you had bargained for.
By leasing, you are able to spread the cost, obtain excellent high-quality and purpose-built furniture at your finger-tips.
2. Conserve Capital
Spreading the cost creates an immediate cash flow benefit, conserving your capital for unavoidable expenses that may crop up, peace of mind that these unpredictable costs are taken care of.
3. No Need to Wait, Get it Now
There is no need to put off your refurbishment any longer, don’t wait for next year’s budget have your new furniture delivered now. By deferring payments for up to 6 months you can enjoy the benefits of new furniture today.
4. Keep up With the Latest Design Trends
Styles change, trends come and go, keep up to date with the latest designs. By leasing, you are able to update your furniture more frequently before it starts showing excessive signs of wear. Be that local venue that always feels fresh and on trend.
5. Set Monthly Payments
While many outgoings and costs can vary with set monthly payments agreed upfront in your leasing agreement you will always know what your monthly cost will be. Because you will enter a fixed term agreement there will be no nasty surprises even if the bank rate changes you will pay the fixed amount for the duration of your term.
6. Happy Stakeholders - ROI
Not only is leasing a benefit to you but also to your investors, directors and stakeholders. You are able to demonstrate a return on your investment (ROI) from day one as the furniture is paid for regularly. Happy stakeholders, happy customers, happy you!
7. Payments Tailored to You
Seasonality is a huge factor in the hospitality sector. When agreeing your lease terms this can be considered and seasonal repayment holidays incorporated in line with your income profile.
8. Business Funding Alternatives
By entering into a leasing agreement rather than utilising loans or overdraft facilities these other lines of credit are protected and remain available should you need them for unforeseeable expenses.
9. Tax Benefits
The payments you make as part of your lease agreement are 100% allowable expenses, reducing your taxable profit.
Whether your hotel, bar or restaurant needs a full refurbishment, freshening up or modernising with some new loose furniture, leasing may well be the best decision you make.