Why You Should Consider Financing Your Next Coffee Machine

The competition in the coffee industry in the UK has soared in recent years. Chains like Caffe Nero, Costa and Coffee #1 have seen stiff competition from independent coffee shops and roast houses. This increase in competition makes it vital that a start-up gets its first coffee machine on finance.

The Figures Behind The Coffee Shop Revolution

• In 2016, the value of the coffee shop industry rose from £2.4 billion (in 2011) to £3.4 billion, according to stats from Mintel.
• In just one year (2015 to 2016), there was a 41% increase in independent coffee shops in the UK.
• Allegra forecasts there will be 32,000 coffee shops in the next eight years... and will outnumber pubs(!) by 2030.

Why You Should Get Your Next Coffee Machine On Finance

As we just saw above, the increase in competition has been and is on course to stay highly competitive. Startups looking to crack into this world of coffee shops may not necessarily be able to afford the substantial initial costs of coffee equipment and other things needed to make your store look like you imagined.

When you opt to acquire a coffee machine on finance, you can rest assured that you're getting the best coffee equipment quicker than your competitors for a price that fits your budget.

"If your coffee machine is the only source of income, you want to guarantee it's protected, whatever happens."

 

Owning a coffee machine doesn't mean a huge amount. It will depreciate over a 3-5 year period, and if it's the thing that earns you your income, you deserve the very best and deserve to have the option to upgrade to newer equipment when it comes about. Buying outright leaves you stuck long-term with an asset that will eventually cost you money to replace/keep maintained.

With most firms, including Love Finance, a coffee machine lease agreement comes with a maintenance/installation clause. Your lease provider covers you should anything happen to your equipment (damages, faults etc.), your lease provider covers you.

Let Leasing Ease Your Tax Burdens

When choosing to acquire your next coffee machine on finance, it's important to consider the money you could save by utilising leasing as tax relief.

Finance can be recorded as a business expense. This can offset the coffee equipment against your pre-tax profit for as long as you lease it.

Finance reduces your tax bill. Simple.

 

Getting a coffee machine on finance is the quickest way to get your coffee shop off the ground. You're not waiting around, saving up the funds to buy a new machine outright (given that just a good coffee machine sells for anything between 3k and 5k, you'll be saving for a while!), or wasting time trying to find a quality coffee equipment supplier.

Start-ups that get their initial coffee machine on finance find that they can usually afford (based on a monthly fee) a better machine than if they had opted to buy one outright because the monthly payments are more manageable than one substantial initial payment.

Love Finance offers bespoke equipment finance packages to suit coffee shops, big or small. Whether you want one coffee machine on finance or several, we devote our time to finding a way to deliver the finance that can help your coffee shop become the last word in Lattes.