Traditionally, we’re an ownership society; we naturally gravitate towards the accumulation of assets in both business and personal pursuits. And while the ultimate goal of business may be to build shareholder wealth and contribute in meaningful ways to the communities we serve, the pathway to success is not always as straightforward as it appears.
At Silver Chef we like to say ‘it’s the use of equipment that makes you money, not the ownership of it’. So what do we mean when we say that? In what situations would it be preferable to rent instead of own, even if temporarily prior to ownership?
Here are the top 3 reasons our customers give us..
A desire to preserve their own capital for future growth. Funds are used to drive front of house business generating activities such as local area marketing, instead of purchasing equipment outright. Conserving working capital strengthens the ability to weather the inevitable up’s and downs of daily trade. Cash flow is the life blood of any business - you wouldn’t pay your staff a year’s wages in advance, so why do the same with your equipment? Importantly, Silver Chef rental arrangements are classified as off balance sheet funding, helping businesses maximise their ability to access traditional types of finance from other providers.
The flexibility to manage equipment assets as needs change. Hospitality is a fast moving, rapidly evolving environment. New concepts and trends are regularly introduced and customer expectations are high. Renting keeps your options open, enabling you to remain agile and respond effectively to changes in the marketplace and your business. Upgrade to meet increasing customer demand, return if no longer needed, purchase at a discount once the equipment is proven if that’s your choice - all these options and more are available to you within a Silver Chef rental agreement.
Reducing operational costs. Out of warranty maintenance expenses incurred to keep ageing equipment functional are expensive, especially in regional areas. Compounding the problem, older gear consumes more energy, is slower and lacks many customer friendly innovations common in later models. Renting enables you to upgrade and take advantage of ongoing advances in technology to serve your customers faster while simultaneously driving your costs down.
So the next time you’re in the market for a piece of equipment, give us a call and one of our friendly experts will be delighted to discuss how we can you help you navigate the ever changing pathways to success through a flexible equipment funding solution.
Written by Silverchef Franchise Relationship Manager, Michael Currie 2018