Paragon Food Equipment's Buying Guide to Commercial Warewashing & Janitorial Equipment

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Guide to Warewashing & Janitorial Equipment

Leasing a Dishmachine (Finance Lease or Operating Lease)

Leasing allows operators to acquire a new machine with no or low upfront cost, paying

over time with the option to own at the end (finance lease) or return/upgrade (operating

lease). Leasing is usually done through an equipment finance company, not a chemical

provider.

Benefits

• Preserves capital and

credit lines — conserve cash

for operations

• Can access higher-end

models you might not afford

outright

• Fixed monthly payments

allow for predictable

budgeting

• Often tax deductible as a

business expense (check

with your accountant)

• Flexibility to own, upgrade,

or return at lease end

Challenges

• Requires good credit or

financial review

• Missed payments can

damage credit or result in

equipment repossession

• May include fees for early

termination

• Some leases include

limited or no maintenance

coverage

• You are responsible

for ongoing service and

compliance

Ideal For:

• Mid-sized

operators

expanding locations

• Facilities planning

for growth but

wanting to defer

capital expense

• Operators

who want asset

ownership without

paying up front

Buying a Dishmachine Outright

Purchasing outright means paying for the full cost of the machine upfront. You

own the asset, and you’re responsible for installation, service, and any repairs after

warranty.

Benefits

• Full ownership and asset

control

• Greater equipment

selection — not limited to

rental stock

• No interest or long-term

payment obligation

• Potential to depreciate the

asset for tax purposes

• Often better ROI over the

full equipment lifecycle

Challenges

• Requires upfront capital

• You assume full

responsibility for repairs and

maintenance

• No bundled service — you

must manage cleaning

chemicals, warranty claims,

etc.

Ideal For:

• Operators with

available capital

and strong

operations teams

• Facilities with in-

house maintenance

or long-term

dishroom planning

• Businesses

seeking to build

asset value and

long-term savings