Commercial Coffee Machine Lease vs Purchase

Buying your own commercial coffee machine is a big decision for any business, but how you take on that purchase can make a big difference to your cashflow, flexibility, and ongoing spend.

Whether your looking to lease, rent or buy, lets take a look at the advantages of each option and lay out everything you need to know to make the right choice for your business.

 

Understanding Your Options

First of all, let’s explore the differences between each option.

Renting or leasing a coffee machine means you pay a set fee per month to have a premium-quality machine but you won't own the equipment at the end of the contract period.

Purchasing means buying the coffee machine outright. The initial price is much higher than renting or leasing but means you take ownership of the machine from day one.

 

Advantages of leasing a coffee machine 

Commercial coffee machine lease has become incredibly popular with businesses across the UK. But what makes them such a good deal?

Low initial cost 

Leasing is great for smaller businesses because it gives access to a premium machine without the large investment upfront. Monthly payments are spread out, making it easier to manage.

Consistent monthly costs 

Not only does this make budgeting simple, but most plans often include servicing, repairs and maintenance in your monthly payment. So there's no nasty surprises. 

Includes maintenance 

Because leasing usually includes maintenance, you can be sure that if something does go wrong your business won’t have to worry. Engineers can be with you quickly to keep your machine up and running.

Flexibility to upgrade

With leasing, you can upgrade to a newer machine at the end of your contract. So your business always has the best technology without large reinvestments.

Tax efficient 

For UK businesses, monthly lease payments can usually be counted as operating expenses, meaning you can lower your yearly taxable profit.

 

When to Choose Coffee Machine Rental 

Although very similar to leasing, coffee machine rentals are slightly different.

Perfect for short term requirements 

Renting is a great option if you know you’ll only need a machine for a short amount of time. Whether this is for event catering or seasonal use, short term rentals are your best option.

Test the waters 

If you want to see what kind of coffee machine works for your business before committing to a lease or purchase, renting different machines can help you make your decision.

 

Advantages of purchasing 

Buying commercial coffee machines outright is pretty straightforward. But what benefits can you expect from purchasing?

Own it forever 

Once you’ve paid for your machine, it’s yours. No monthly payments or contract to stick by.

Cost-effective in the long run 

If you’re going to be using your coffee machine every day for several years, buying can work out cheaper than leasing.

Full flexibility 

If your business owns the machine, you’re free to service it wherever you want. And make the call whether to upgrade or not.

Becomes an asset to your business 

When you buy your coffee machine, it becomes one of your business assets. Which you can likely resell down the line.

Things to consider: 

• Larger upfront cost
• Responsible for maintenance 
  
• Technology can become outdated 
  
• Less flexible as upgrading requires another large investment

 

How do You Know Which is Best For You?

Deciding between buying a coffee machine, leasing or renting comes down to your business needs.

Lease your coffee machine when: 

• You’re after low start-up costs 
• You like the idea of fixed monthly payments
• You don’t want to worry about maintenance 
• Your business is growing

Rent your coffee machine when: 

• You need equipment for a limited time 
• You want to test different coffee machines 
• You prefer flexibility over ownership 
• Your business is involved in seasonal/events based catering 

Purchase your coffee machine when: 

• You’ve got the funds available 
• You plan on keeping the coffee machine long-term
• You want full control 
• Your business needs are set

 

Final verdict 

There’s no right or wrong answer when looking at lease, rental or buying options for your commercial coffee machine.

Leasing can help your business save money and stay flexible. Renting is great for short-term requirements. And purchasing offers great value if your business can afford the up-front investment.

At Cotswold Coffee, we recommend doing what’s best for your business. If you’re still on the fence about which option to go for, get in contact with one of our team and we'll be happy to provide more information to help you make an informed decision.