When opening a new gym, not only do you have to think about the equipment that you want, but you also have to figure out the costs behind acquiring that equipment. A lease term can help you nail down exactly what it is you can afford. Let’s take a look at the advantages of leasing gym equipment.
Maximize your cash flow
Entering into a fixed monthly contract that matches your income to your expenditure is a smart way of helping preserve your cash flow. By keeping low monthly payments, that leaves room for investing your funds in other areas of your business that need growth. Also, you will know exactly how much your payments will be every month, so you can plan ahead for your expenses. You don’t have to deal with one large lump sum to purchase what you need, making it easier to budget for the equipment over a longer period of time.
Section 179 states that you can deduct the full amount of the equipment, without paying the full amount this year. The amount you save in taxes can actually exceed the payments.
Always have updated equipment
If you would like to keep updated gym equipment to remain competitive, leasing allows you to avoid being stuck with outdated equipment. When your lease ends you can replace the equipment you currently have with newer equipment. With leasing, you don’t pay for maintenance. If something breaks or has issues due to normal wear and tear, the leasing company is in charge of fixing the equipment.
We are now offering commercial and consumer financing for our fitness equipment through our leasing partner Geneva Capitol LLC. This is a great option for customers looking to buy a large quantity of equipment.