To Lease or Purchase: Evaluating the Best Option for Your Commercial Laundry Operation

While not as profound as Shakespeare’s Hamlet (To be or not to be, that is the question), for some businesses, constructing a new laundry facility or upgrading an existing one could be crucial in maintaining competitiveness, efficiency, and, in certain instances, survival.

Considering such an endeavor, it’s worth reflecting on your approach to acquiring and financing laundry equipment. The following article objectively examines the options available, helping you determine the best fit for your circumstances.

The choice between purchasing and leasing laundry equipment poses a dilemma. However, with access to suitable financing or leasing programs, laundry owners can strategically decide which option aligns best with their business objectives and financial situation.

When is Buying the Right Choice?

Investing in laundry equipment offers the benefits of long-term ownership and potential asset depreciation advantages. This aspect impacts financial statements and tax liabilities over time and is worth discussing with your accountant. 

However, purchasing may necessitate a substantial initial investment, which is particularly burdensome for small businesses. Moreover, owners bear the responsibility of maintenance, repairs, and eventual replacement, contributing to the total cost of ownership. 

While financing rates vary, locking in your interest rate may allow you to make consistent, manageable monthly payments. Variable rates may offer benefits if they decrease but pose a risk if they rise. 

Additionally, purchasing affords complete control over customization. This means the equipment can be tailored to meet specific needs or preferences, allowing for adjustments, upgrades, or specialized features without constraints from a leasing agreement.

When is Leasing the Right Choice?

Leasing laundry equipment, often likened to car leases, may receive criticism, but it remains a viable option for businesses seeking flexibility and cost-effective access to equipment. Unlike purchasing, leasing requires minimal upfront investment, making it accessible to businesses with budget constraints. 

Additionally, lease agreements commonly incorporate maintenance services, reducing ongoing expenses and alleviating the burden of equipment upkeep. Tax-deductible lease payments¹ further contribute to cost savings, enhancing overall financial efficiency. Leasing enables businesses to embrace cutting-edge technology, enhancing operational efficiency and productivity. 

Access to state-of-the-art features like card payment processing and Wi-Fi connectivity streamlines transactions and improves user experience. Moreover, leased equipment can be easily upgraded or replaced, ensuring businesses stay competitive amidst evolving technology. 

However, lease agreements may entail restrictions or penalties, such as usage limits or maintenance requirements, which should be carefully evaluated. 

Additionally, customization options may be limited since lessees do not own the equipment outright, hindering significant modifications or alterations. As the lessor retains ownership, lessees must adhere to lease terms, potentially restricting customization compared to outright ownership.

Choosing Wisely

Ultimately, the decision between buying and leasing hinges on budget, management preferences, and equipment requirements. Regardless of your choice, here are some key considerations:

1. Assess Your Needs: Begin by evaluating your business’s specific requirements, including washer and dryer size, capacity, and any special features needed.
2. Research Leasing Providers: Explore companies specializing in commercial laundry equipment. Skyline offers a range of leasing and financing providers. Compare prices and terms to find the best fit for your business.
3. Negotiate Terms: Once you’ve identified potential partners, negotiate favorable terms. Discuss equipment pricing, lease duration, and additional services like maintenance and repairs.
4. Review the Agreement: Before committing, carefully review the agreement. Pay attention to warranty details, early termination fees, and options for equipment upgrades.
5. Manage Finances: Budget effectively to ensure timely monthly payments, keeping your business’s financial health in check.

As one of the leading commercial laundry distributors in the US, we offer top-notch equipment with flexible financing and leasing options. With over 40 years of experience in serving this industry, we’re committed to providing tailored solutions to meet your needs.

Convenient Options That Fit Into Every Budget

We offer two convenient ways to acquire equipment in response to customer feedback. Below are a few benefits and features of each program.

Have More Questions?

If you have further inquiries or require expert guidance, our team is here to assist you.

Feel free to reach out today to discuss your needs or request a quote.

1. Skyline is not a tax advisory service. You should speak with your accountant regarding the financial benefits and drawbacks of leasing versus buying.