Fitness equipment leasing companies can help you save thousands of dollars through a number of ways. Once you discover how exactly they can help you, they you can worry less about how you are going to finance equipment for your gym and more about how to run it smoothly.
It is proven, and most financial experts agree, that equipment leasing is the most viable method of financing capital needs. According to statistics, 80% of companies lease equipment at least once in their lifetime. So it shouldn’t surprise you that the leasing industry today provides a huge amount of capital in the financial industry when it comes to acquiring assets. So what is the excitement all about? The fact that any equipment can be leased makes it something to consider. You can lease anything from treadmills, Pilates machines, computer software, etc. You just name it and you can lease it.
How Fitness Equipment Leasing Companies Can Help You Save Money
Fitness equipment leasing companies can help you save money in many ways and one of them is that you do not need to make a down payment when leasing. How does this help you save money? Very simple. When you take a conventional loan from a bank to purchase your gym equipment, they usually require you to make a down payment. When you lease your fitness equipment, the only down payment you will make will be for the first and last month of your lease and even then, the money is usually refundable to you after a certain period into your lease. This is especially very convenient for fitness centers that do not have enough cash flow to spare for down payments.
Another way that fitness equipment leasing companies can help you save money is by helping you maintain and repair your equipment. Your gym equipment will be used by several people and as a result, it will likely become worn out and sometimes break down. The cost of repair and maintenance can take a toll on your cash flow. Most lease agreements usually include a maintenance and repair clause. This way, maintenance costs are shouldered by your lessor.
Fitness equipment leasing companies can help you acquire expensive equipment without spending too much money. When you compare leasing versus making a direct cash purchase, you find that leasing is much cheaper than making a direct cash purchase. Since you can lease practically anything, you will have the privilege of owning high-tech gym equipment, which you would not have otherwise been able to afford. You can sign a lease to own agreement where at the end of the lease, you can purchase the equipment at $1, at 10% of the initial cost or at fair market value. In addition, the cost of the equipment will be evenly spread out through your entire lease period. This way, your money will not be tied up in gym equipment.
Another way you can save money with fitness equipment leasing companies is when you choose to upgrade equipment. When you purchase equipment, upgrading can cost you a huge amount of money because sometimes you may need to purchase new equipment all together. When you get into a lease agreement, you can upgrade your equipment after your lease period ends at no extra cost. Depending on your gym’s needs, you can request for a new model, new software, etc.
Isn’t Leasing A Little Too Good To Be True?
Truth be told, leasing does come with some risks, which if you do not look out for, can potentially harm your business. If you want leasing to work for you, you have to carefully choose fitness equipment leasing companies. If you choose to get into a verbal agreement, then that will be the beginning of your gym’s woes. Always ensure that everything your lessor promises you is put in writing.
Ensure that you hire a lawyer to go through your contract and identify any loopholes that the leasing company might have in the contract. Your lease contract should clearly state any payments you are supposed to make. You can also ask important questions such as if the equipment breaks down who will bear the cost of repair; will it be you or the lessor? Is there a penalty for early termination of the lease? Is there a buyout option at the end of the lease?
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