Is leasing fitness equipment for your gym really that simple? Isn’t obtaining a bank loan or making a cash purchase much faster and less complicated?
The only way that you can truly know if leasing fitness equipment for your gym is easy is if you know the leasing process. Knowing how something works gives you a better understanding of what to expect and how to avoid some of the risks that come with it. Equipment leasing is one of the easiest processes that can help you acquire gym equipment as compared to taking a bank loan or making a direct purchase. Remember that leasing has its pros and cons but it is still the most preferred option by many gym owners when they need to acquire new equipment. The reason why it is preferred is because:
1. It is cost effective
2. It has tax advantages
3. It protects against equipment obsolescence
4. It is flexible
The Process Of Leasing Fitness Equipment For Your Gym
Gym owners who have no idea as to how leasing works can easily be tempted to think that it is a long and tedious process. Once they finally realize that reputable equipment leasing companies can provide them with practical solutions to their business needs, they begin to dig a little deeper.
The first step in the process of leasing fitness equipment for your gym is to identify your needs. How much capital do you have? Will it be enough to lease brand new treadmills or second hand treadmills? Do want to own the equipment at the end of your lease or would you prefer to return it to the lessor? More importantly, you should figure out which fitness equipment you need before heading out to look for a leasing company.
Speaking of leasing companies, this brings up the next step; finding a leasing company. There are many things that you should consider before settling for one leasing company. One of the things that you should consider is how legitimate the company is. Is it registered with the Better Business Bureau? Do they have references? If so, you should call them up and find out from them if the company’s services are worthwhile.
It is important to select at least three leasing companies so that you can compare quotes from each of them. This will help you find a suitable plan for leasing fitness equipment for your gym. Remember that you should not always consider companies that offer the lowest rates. Look at the sort of equipment they are offering you. It does not necessarily mean that low rates equals low quality equipment and neither does high rates mean that the equipment is of the highest quality.
The next stage of leasing fitness equipment for your gym is to contact the lessor and have them draft up your lease agreement. The overall process should not take long at all. All you have to do is make sure that your documents are in order. Ensure you have your bank statements, your business information and any other documents that your lessor might need. Once they present the lease agreement to you, read through it and ensure that the terms and conditions are agreeable to you. It is advised that you have a lawyer go through your contract so that they can identify any loopholes. Your lawyer can also help you to negotiate better leasing terms which will benefit your business in the end. From there, your lease should be approved within 24 hours.
How Is Leasing Better Than Other Financing Options?
When leasing fitness equipment for your gym, you do not need large sums of money as you would need when making a purchase or making a down payment for a loan. More importantly, you do not need to put up any kind of collateral. The only kind of collateral your lessor needs is the equipment you are leasing. In any case, if you are unable to make your monthly lease payments, your lessor will just take back their equipment. Purchasing equipment is also not a good idea because you will end up tying your funds to equipment. This is not good because if cash is tight, you might be unable to perform other operations in your fitness center.
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