Everything You Need to Know About Leasing Restaurant Equipment

Opening or expanding a restaurant takes serious investment — and equipment costs often make up a big portion of that. From ranges and refrigerators to espresso machines and dishwashers, outfitting a kitchen adds up fast.

That’s why many business owners choose to lease instead of buy. Leasing restaurant equipment lets you get the tools you need right away without large upfront costs.

In this blog, we’re breaking down how restaurant equipment leasing works, the advantages and drawbacks, the types of leases available, and how you can start leasing through NewCap Leasing. 

What Does It Mean to Lease Restaurant Equipment?

Leasing equipment is a financing option where you pay for the use of the equipment over time, rather than purchasing it outright.

Here’s how it works:

• You (the restaurant owner) choose the equipment you need.

• A leasing company purchases that equipment for you.

• You make regular, fixed payments for an agreed-upon term.

• At the end of the lease, you can often choose to buy the equipment, renew the lease, or return it.

In short, you get access to commercial-grade equipment without tying up all your capital at once — giving you the flexibility to afford all the other expenses that come along with getting your restaurant up and running. 

The Advantages of Leasing Restaurant Equipment

Leasing can be a smart move for both new and established businesses. Here’s why:

1. Preserve Cash Flow and Credit Lines
Leasing helps you avoid large upfront payments, keeping cash available for daily business needs like payroll and inventory. It also preserves your company’s borrowing power, freeing up working capital without affecting existing credit lines.

2. Predictable Monthly Costs
Fixed payments make budgeting easier and eliminate unexpected expenses related to repairs or depreciation. Many leasing options also offer flexible payment schedules to suit your business needs.

3. Fast Approvals
Applications for leasing can often be processed quickly, giving you access to the equipment you need without long waits or extensive paperwork.

4. Tax Advantages
Lease payments can often be deducted as business expenses, and sales tax can be spread over the term instead of being paid upfront — providing potential tax savings.

5. Access to Modern Equipment
Leasing allows you to upgrade to newer, more efficient models as your business grows or as technology improves.

6. High Approval Rates
Leasing programs often work with businesses of all sizes, including startups or those with limited credit history, making it easier to secure the equipment you need.

7. Flexible End-of-Lease Options
When your lease ends, you can choose to purchase, renew, or return the equipment, giving your business options as it evolves.

The Disadvantages of Leasing

While leasing can be highly beneficial, it’s not always the perfect fit for everyone. If you're considering leasing, think about the following:

• No Ownership Until the End: You don’t build equity in the equipment until you buy it out.

• Potentially Higher Long-Term Costs: Over time, total payments may exceed the purchase price.

• Contract Terms: You’re committed for the lease term and may face fees for early termination.

• Limited Modifications: Some leases restrict equipment modifications or upgrades.

For many operators, these trade-offs are worth it for the flexibility, especially during a restaurant’s early growth stage.

How Leasing Compares to Buying or Renting

Leasing is often the middle ground — more flexible than buying, but more stable and cost-effective than short-term renting.

Key Financial Benefits

For restaurant owners, cash flow is everything. Leasing helps you:

• Preserve working capital for daily operations.

• Maintain steady budgets with predictable monthly payments.

• Access potential tax deductions on lease payments.

• Invest your savings into growth — like marketing, menu development, or hiring.

It’s a financing model designed to help your restaurant start strong and stay agile.

Leasing with NewCap

At Nella Toronto, we partner with NewCap Leasing to make the leasing process seamless and flexible for foodservice businesses of all sizes.

Through NewCap Leasing, you can lease nearly any piece of equipment you need — from commercial refrigerators and ovens to coffee equipment and slicers. They also work across multiple industries, including:

• Restaurants and cafés

• Butcher shops and delis

• Supermarkets and cafeterias

• Construction, healthcare, and fitness businesses

Why NewCap Leasing?

• Fast Approvals: Applications can be processed in as little as 20 minutes.

• Flexible Payments: Choose a plan that fits your business.

• High Approval Rates: Even startups or businesses with limited credit history are considered.

• Buyout Options: Own your equipment at the end of your lease term.

• BONUS: Play around with their lease calculator 
  

How to Get Started

Getting started is simple.

1. Fill out the contact form on the Nella Toronto website, and a leasing expert will reach out within 24 hours.

2. Or, complete the NewCap Leasing application and email it to info@newcapleasing.com.

3. You can also call 416-645-0286 

Leasing restaurant equipment gives you flexibility, access to high-quality tools, and the freedom to manage your business finances strategically. It’s not just about getting equipment — it’s about building a sustainable foundation for growth.