What kind of Fitness Equipment Lease Terms do Companies have to Abide By?

Do the various fitness equipment lease terms make leasing an optimal choice for a business?

fitness equipment lease termsWith businesses, it’s all about getting the best, cost-effective setup possible, especially when your company is first starting. It’s absolutely essential that the service you offer is as impeccable as possible, but being able to do so at a decent rate can be fairly difficult.

A good example is a fitness center, where the service you offer directly correlates to the equipment you purchase. When you start a new fitness center as a business owner, one of the biggest challenges is managing your finances in such a way that you can get all of the equipment you need yet still afford everything else in your business.

Gyms carry heavy, expensive equipment however, and having a way to buy anything and everything you need is difficult but completely necessary. One of the more effective ways to purchase your equipment is to not actually outright purchase, but use other means to get the equipment you need to save money.

For instance, you could take out a bank loan to get the necessary money to buy your equipment, or take out a lease and get the equipment loaned to you for a reduced rate. However, there are a quite a few different factors to consider, such as the fitness equipment lease terms and the loan terms you get set up with.

So, when comparing the two, which is the better way to acquire your equipment for your fitness center?

Purchasing your Gym Equipment

Oftentimes business owners stick with purchasing their equipment with some funding so they can get full ownership of the equipment. After all, when you own the entire business, you want to own the equipment that goes with it as well. However, ownership of equipment isn’t always beneficial, especially when you have to pay so much for it in the short run or the long run.

With purchasing, it’s one thing to buy the equipment you need and that’s the end of it. But after a while, the equipment’s guaranteed to lose its quality, some equipment faster than others. Generally, the more complex, intricate, and expensive the equipment is, the faster it’ll break down, and when that happens, options are limited.

For cheaper equipment, it’s no issue: you just pay to replace it, and it’ll normally last a while anyhow. For more expensive equipment, you end up having to pay quite a bit of money to buy the equipment in the first place, and then pay again within a few short years to replace the equipment.

This is generally not effective for a new business, especially when finances are tight and you’re trying to spend money on so many other things for your business. With a bank loan, there’s no guarantee that the rates will be any more helpful however.

Bank loans are based off of how much you loan, so even with a low interest rate the amount of interest you’ll have to pay back will be large if you’re purchasing expensive equipment. Plus, what happens if you still have that loan and need replace your equipment? That’s just more debt you’re accumulating.

Fitness Equipment Lease Terms

Leasing is a fairly straightforward process involving getting equipment loaned out to you in exchange for you paying a monthly rate. The reason leasing is so much more convenient is that you’re not paying for equipment, but you’re paying for a service, so you’re getting everything you need to run your business with good equipment.

Fitness equipment lease terms involve you paying a low, flat monthly rate, which is much more convenient for business owners to pay versus high payments. Plus, having a lease automatically means you get tax benefits, putting money in your pocket every year come tax return time.

Looking at fitness equipment lease terms, the details generally vary, but you do get some form of a repair setup to avoid dealing with broken equipment. In other words, when your equipment breaks down, you don’t have to pay a large price to repair the equipment.

Instead, the leasing company repairs the equipment and returns furbished equipment to you quickly. Fitness equipment lease terms also generally involve you getting some kind of upgrade, meaning you get up-to-date equipment every few years.

To learn more about the different fitness equipment lease terms that can prove to benefit you, click here.