Home – New Forums Money matters Financing cafe equiptment?

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  • #988615
    CaraTee
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    What are your suggestions for cafe equitpment (combi, stove top, krivac, coffee machine)

    1. Purchase outright with bank financing
    2. Purchase on a ‘balloon loan’
    3. Lease
    4. Something else

    The above would assume you are buying new though I guess which seems like madness? Maybe it would make sense to lease/balloon the coffee machine and combi and buy the rest second hand?

    Thanks

    #1168105
    LucasArthur
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    Hi Cara,

    Not that i am in the cafe business, although personally, i would prefer option 4. Other – Purchase Outright as this gives you no repayments to meet, no excessive interest payments and what you earn is what you keep :) minus basic operational expenses.. But note, this is just my personal preference…

    If you are considering either of the other 3 options, just check what TOTAL COST is over the time frame – and re second hand items, oh boy, with the amount of businesses in this industry opening and closing i would HIGHLY recommend seeking near new second hand items from all sorts of avenues before paying FULL RRP….

    Let us know how you go

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1168106
    31Degrees
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    I have no idea what they are like to get things through, but maybe check out something like Silver Chef? https://www.silverchef.com.au/

    #1168107
    MH08
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    1. Lose money today but with planning it can come back?
    2. Balloon loans only save you very little anyway.
    3. Lease is a better option from a company like Premier Rentals.
    4. For the coffee machine, have one of the coffee companies come in just make sure you find out the minimum coffee order per week otherwise they’ll take the machine no questions asked.

    Fridges can be acquired directly from Coke or Schweppes, but go over their contracts carefully to find the hidden gems they have. Also don’t be afraid to push them to their limits because they want the business. I know because I’m a distributor/importer myself, what does this mean? I literally push competitors fridges outside and put mine in.

    Silver Chef pretty much controls the financing in the HoReCa sector.

    #1168108
    31Degrees
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    MH08, post: 195109 wrote:
    Silver Chef pretty much controls the financing in the HoReCa sector.

    I had a feeling they might, but the only experience I have with them is a brief chat and a free keyring from hospitality expo. I’m not looking at opening a store or getting big equipment til early next year, but are they a good option?

    #1168109
    MH08
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    Silverchef have more of an understanding what’s needed to finance a business in the hospitality sector compared to a bank.

    The key to cafe’s and restaurants is owning as much as possible because if you don’t and when it comes to sell with assets, it’s much at the value of a hairdresser.

    Just make sure that you carefully value everything and that each of those seats make money because costs in a cafe/restaurant fluctuate greatly.

    For example, cinnamon donuts went from $34 per box to $52.

    Always stay on top of suppliers (i.e. myself) if you venture down this path.

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