Price is usually a significant deciding factor in whether your startup retail or restaurant business can afford a point-of-sale system or not. You’re probably unsure if you can afford to buy one, or if you should try and make your own solution using a tablet and free online software.
Several companies offer cheap point-of-sale systems solutions through processing contracts, but sometimes those solutions are not supported well or the company is offering a subpar product.
So what is the best decision when it comes to getting a point-of-sale system? Do you put yourself in debt and cover the expense or buy a cheap one? What do you do if you’re unsure if your business will even be profitable in a year, and are afraid to invest in all that equipment right away?
There is another way to get a nice point-of-sale system without paying all the upfront cost of buying one. Lease-to-own programs are a viable option for many businesses who can’t afford the upfront cost.
But isn’t a good option for everyone, and you could lose money on leasing a POS system if you’re not considering your long-term business plan.
So we want to cover some of the main things you should consider when deciding if using a lease-to-own a point-of-sale system program is right for you.
What you need to know about POS leasing programs
Now before you can lease a point-of-sale system to own it, the company footing the bill is going to require you to prove you’re not going to be a risk.
Some of the things they might require will vary based on the company loaning you the equipment, but here are two common requirements a leasing company is going to look for when assessing if they will lease your company equipment.
A start-up business will usually have some money tied up in costs. However, if you have tax liens or any sort of outstanding credit on past debts you might have trouble getting approved.
Proof of income
Starting a business is expensive, but a leasing company is going to want to make sure you have proof of income to pay your lease before letting you use their expensive equipment.
General credit check
You have to have good credit in order to lease any other kind of item or make a large purchase, so make sure you’re credit is in a good spot before applying for a lease.
If you have all of the above in order, you’re sitting in a good position to explore leasing equipment for your bar or restaurant.
What’s your 5-year business plan?
Another thing your business should consider before you decide on if leasing is right for you is to look at your business goals for the next several years.
If you want to double the volume of your sales or ticket items you’re going to have to account for what tools you’ll need to support that kind of increase in business.
Sometimes leasing is not the right option if you’re pretty confident your business is going to grow quickly and might want to consider investing in owning a point-of-sale system.
Interested in exploring your options through financing or buying a POS system?