Why Lease Gym Equipment When Opening A Gym?
Pretty straightforward question, I’ll grant you, but the answer is anything but simple. Afterall, leasing vs purchasing is a business decision, and as such has many facets to consider. Business matters are rarely a black and white affair. But don’t fret! In the interest of brevity, we’ve outlined the Top 5 Reasons To Lease Gym Equipment – to help you decide if a leasing program is right for you. And really, to make a long story very short: often, at the bottom line, leasing is the smarter decision, and this guide will help you understand why. Especially when opening a new business! A flat, predictable, all-inclusive payment is far wiser and superior to the costs and obligations of purchasing outright – but you’ll have to read below to really get why!
Top 5 Reasons To Lease Gym Equipment When Opening A Gym
- Preserve Your Working Capital – The single largest contributing factor to the premature closure of new fitness businesses is not enough working capital. They are forced to close because their operations expenses were too high for the amount of money they had to work with – and they were forced to close their doors before their membership could grow to sustainable levels. Hypothetically, you have $100k to start a new fitness business. You outfit your facility with $80k worth of equipment. If you were to purchase that equipment outright, you would only have $20k remaining to pay your expenses while your membership grows to become profitable. However, if you were to lease this equipment, you would have something like $80k remaining for operations expenses! That’s a time difference of 4 times longer to turn your fitness center profitable! That is absolutely the difference between a successful fitness center and one which was forced to close its doors.
- Tax Deductions – Death and taxes wait for no man but visit the doctor’s and look for deductions anyway. With a leasing program up to 100% of your monthly payment may be tax deductible. You’ve worked hard for your money, go about your business in a manner that lets you keep it!
- Fixed Rate – Here at UsedGymEquipment we understand that nothing in business is truly predictable. However – knowing whats coming is half the battle – and to that end, our leasing programs can come with a fixed rate, so that you know exactly what your expenses will be and be able to plan accordingly.
- 100% Leasing Coverage – From freight and shipping to warranty to installation, the entirety of your experience with UsedGymEquipment is covered under the lease. One low monthly payment for the Complete Gym Solution. No questions, no worries, just you making your business successful because you’ve consolidated so many of your concerns.
- Protection From Obsolescence – This is certainly more of a long term concern, but is no less important for it. If your business is successful enough to thrive and grow, having a lease frees you from the liabilities of being locked into your equipment. Never will you be stuck holding the ball on old, outdated equipment because upgrading and growing is as simple as engaging in a new lease. Stay as flexible and up to date as your business demands!
There you have it! It’s paints a pretty clear picture once all’s said and done. Would you rather be accountable to an enormous upfront cost, potentially bankrupting you before you have the opportunity to turn a profit or take a single, fixed monthly payment that is all inclusive, from the equipment to the warranty and freight and installation? Yeah, like we said, it’s pretty clear.
Of course there are risks involved, and you need to qualify for the lease in the first place. To that end we work exclusively with financial institutions that understand the value of small business investments, and all of ours sales staff and account managers can walk you through the application process! Give us a call at (310) 638 4800 to get started on your path to leasing equipment and starting a gym today!
At this time we can only offer leasing solutions to those in the United States and those in Canada.