A Case for Financing

2 Min Read By Doug Houlahan

One challenging aspect of owning a small business is purchasing and maintaining expensive equipment. This is especially true in the food service industry. Restaurant equipment directly affects the customer experience and operating efficiency from the quality of food offered, the food preparation time and the front and back of house staff levels required to properly service the customer. From greeting customers with a clean glass of ice water to printing the bill, every step of service in the restaurant industry relies on functioning equipment. 

A 2020 Harvard Business School study reported that 74 percent of businesses do not have the cash on hand to cover an equipment-related expense. JPMorgan Chase found the median small business holds 27 cash buffer days in reserve. The restaurant industry falls behind the median with an average of only 16 cash buffer days. If an ice machine, fridge or dishwasher unexpectedly breaks, restaurants can not afford to wait and save for a replacement…