What is espresso machine leasing and who is it for?
Leasing is a contract in which a leasing company buys the machine and lets your business use it. You pay instalments over an agreed period, and at the end you usually buy the machine out. You work on new equipment from day one, and the expense is spread over time.
In our experience, leasing is most often chosen by three groups:
- new cafés, which face many expenses at once when opening and prefer to keep cash for the premises, stock and staff (see the equipment plan for opening);
- growing venues: a second site, a bigger machine or an extra group as traffic grows;
- cafés replacing their machine, when the old equipment breaks down more often or cannot keep up at peak times (see when to replace your espresso machine).
Operating lease vs finance lease
When leasing an espresso machine for a café, you will come across two basic forms. They differ in who records the machine as a fixed asset, what counts as a cost and how VAT is settled.
operating lease
The machine stays on the leasing company's books, and the leasing company depreciates it. Your business pays instalments, which are usually fully tax-deductible costs. VAT is added to each instalment. At the end of the contract you buy the machine out for the value set in the contract. This is the form most often chosen by businesses that want to lower their current tax.
finance lease
The machine goes on your business's books, and you depreciate it. The costs are the interest included in the instalments and the depreciation charges. You pay VAT on the machine's value up front, at the start of the contract. After the last instalment the machine becomes yours without a separate buyout.
| Operating lease | Finance lease | |
|---|---|---|
| Who depreciates the machine | the leasing company | the lessee (your business) |
| What counts as a cost | the lease instalment | interest in the instalments and depreciation charges |
| VAT | added to each instalment | charged up front on the machine's value |
| At the end of the contract | buyout for the value set in the contract | the machine becomes yours after the last instalment |
Which form works out better depends on how your business is taxed, its situation and your plans. Confirm the details with your accountant before you sign the contract.
Purchase, loan, rental or leasing?
Leasing is not the only route. If you have the cash, buying is often the simplest. A loan lets you finance more than just the machine. Rental or hire works well if you operate seasonally or want to test a concept. A quick comparison:
| Option | Pros | Cons |
|---|---|---|
| Outright purchase | the machine is yours straight away, no financing costs, full freedom | a large one-off expense, less cash at the start |
| Leasing | instalments instead of a one-off expense, the instalment can be a business cost, quick process | financing costs, a fixed-term contract, insurance |
| Loan | the machine is yours straight away, you can finance more than just the equipment | usually more paperwork, a credit assessment |
| Rental or hire | low entry threshold, good for a short period or a trial | no ownership, usually the most expensive option over the long term |
In our experience, for a machine that is meant to work for years, leasing or buying usually comes out on top. Rental makes sense over a short horizon, for example in a seasonal venue. Keep in mind too that the machine stays in the café for years, while the financing ends after a few. So it is worth choosing the right equipment first and only then the way to finance it. A cheaper machine that is too small will cost you more in queues and service than the difference in the instalment. We do not rent out machines ourselves: we sell them for cash or through leasing, which we help arrange.
What affects the lease terms?
Each leasing company assesses the business and the contract in its own way, but the terms are usually affected by the same things:
- down payment: the higher it is, the lower the instalments and the easier the leasing company's decision;
- contract term: a longer term means a lower instalment but a higher total cost;
- buyout value: a low buyout value raises the instalments, a high one lowers them but leaves a larger amount to pay at the end;
- business track record: an established business with good results usually gets better terms;
- new business: a business with no track record can also get a lease, but the leasing company may expect a higher down payment or additional security.
The exact terms depend on the leasing company. That is why, with our quote, we prepare a comparison of financing offers so you can choose the best one for you.
What to budget besides the instalment?
The machine instalment is not the whole cost of the bar. When planning your budget, include from the start:
- service: a service plan with scheduled services and a fast response in case of a breakdown;
- water filtration: a filter and regular cartridge replacement (more in the guide water for espresso machines);
- grinders: at least two, for espresso and for a second coffee, which can often be covered by the same contract;
- insurance: leasing companies usually require the equipment to be insured for the term of the contract.
It is worth choosing grinders and filtration together with the machine and including them in one quote. That way you have a complete bar from day one, not just a machine.
What to check before signing the contract?
Lease contracts differ in details that are easy to miss when you compare instalments alone. Before you sign, check:
- the total cost, not just the instalment: the sum of the down payment, all instalments, the buyout and additional fees;
- additional fees: for preparing the contract, changing the schedule or early termination;
- insurance: whether it is included in the instalment or has to be bought separately, and what it covers;
- what the contract covers: the machine alone, or also grinders, a filter and installation;
- early buyout: whether it is possible and on what terms, if the café grows quickly.
We prepare the comparison of offers so that these items are shown side by side. That way the decision is based on the whole cost, not a single number.
Why is La Marzocco well suited to leasing?
Leasing makes sense when the equipment works for longer than the contract lasts. La Marzocco machines are built to last for many years. Every boiler is made of AISI 316L stainless steel, hand TIG-welded and pressure tested. Every machine is assembled, switched on and run for several hours under controlled conditions before shipping.
Parts for La Marzocco machines are available for at least 10 years after a model is discontinued, so the machine can still be serviced after the buyout. On top of that comes its second-hand value. As our trainer says:
“Every specialty café should have at least a dual boiler, like the one in the La Marzocco Linea AV. These machines last a long time, look beautiful and hold their value on the second-hand market.”
We explain which model to choose in the guide Which espresso machine for a café? and in the article Specialty café: which espresso machine to choose? You can check the number of groups in the calculator.
How does leasing a machine with us work?
- Consultation. We talk about your menu, traffic, venue and budget. Free of charge and with no obligation.
- Selection. We propose the machine, number of groups, version, grinders and water filtration.
- Quote with financing. We prepare an equipment quote and a comparison of lease offers so you can see the differences.
- Documents. We help you put together the documents for the leasing company and go through the application.
- Delivery and setup. We agree the delivery date when you order. We install the machine, commission it and go through its operation with your team.
Want to finance a machine through leasing? We will prepare a comparison of offers.
frequently asked questions
Can a new business get a lease for an espresso machine?
Usually yes. Leasing companies also finance businesses with no track record, although they may expect a higher down payment or additional security. The exact terms depend on the leasing company; we will prepare quotes.
Operating or finance lease: which to choose?
It depends on how your business is taxed and its situation. With an operating lease the instalment is a cost and the leasing company depreciates the machine. With a finance lease you depreciate it. Confirm the details with your accountant.
Can I lease a used espresso machine?
Some leasing companies also finance used equipment. The terms depend on the age of the equipment and the leasing company.
What about servicing a leased machine?
Service works the same as with a purchase. We recommend a service plan with scheduled services and a fast response in case of a breakdown, budgeted alongside the instalment.
Can the lease also cover grinders and a filter?
Usually yes. It is worth choosing grinders and filtration together with the machine and including them in one quote. The details depend on the leasing company.
How much is a lease instalment for an espresso machine?
It depends on the model, the down payment, the contract term, the buyout value and the leasing company. After a consultation we will prepare a comparison of offers.
read also
- Linea Mini or GS3? Which one for your home?
- Which espresso machine for an office? Does a traditional one make sense?
- Linea Micra or Linea Mini? Which one for your home?
- Grind-by-Sync: how La Marzocco controls a Mahlkönig grinder
- How to make milk drinks faster in a café
- Espresso machine for a roastery or showroom: how to show off your coffee
- 10 mistakes when buying a café espresso machine (and how to avoid them)
- Espresso machine for a bakery or patisserie: selling coffee alongside your bakes
- Is a more expensive café espresso machine worth it?
- New espresso machine in your café: a barista training plan for the first month
- Espresso grinder for a café: on-demand or doser, and how many you need
- ABR drip tray scales or AV dosing? When the extra cost pays off
- Espresso machine service: what it covers, how often, and when to call a technician
- La Marzocco in Warsaw: Tekla, Doza and Wandal
- Specialty café: which espresso machine to choose? What a specialty café needs
- Opening a café? An equipment plan, step by step
- Dual boiler, saturated group, independent boilers: what they change in the cup
- When to replace your café espresso machine? 5 signs
- Water for espresso machines in venues: hardness, filtration, boiler protection
- Espresso machine cleaning and backflush: a schedule for your team
- Espresso machine for a restaurant or hotel: what to look for
- Which espresso machine for a café? A guide to La Marzocco machines
- Linea Classic S, Linea PB, KB90 or Strada? A comparison
- AV, ABR, EE, MP: what La Marzocco machine versions mean
- Preparing your venue for an espresso machine: power, water, drain
- How many groups does your venue need?