Leasing and Budget Planning
Planning how to finance your new gym or fitness suite can be a complicated task. Having a good business plan is an excellent start and we have years of experience to help you to make sure your purchase budget matches the projected income from your new gym equipment. Fitness Options has assisted numerous schools, colleges, hospitals, personal trainers and gyms to achieve their equipment goals without breaking the bank to do it.
Leasing your gym equipment provides a very cost and tax-effective method of funding your gym equipment purchase. As any business person knows, cash flow is fundamental to the success of any business and particularly new start businesses. Leasing spreads the cost of your new equipment over typically 1 to 3 years and for established businesses up to 5 years. Ah, but don't you pay interest on leases? Yes, but this is where one of the major benefits of leasing comes into play - lease payments are tax-deductible! Lease payments are classed as a business expense and as such can be offset against profits thus reducing the amount of tax paid by the business, which can effectively negate a large proportion of any interest paid on the lease itself.
Various lease options are available to give you the choice of what to do with the equipment at the end of the lease. The first and probably the most obvious option is to keep the equipment. Because a lease is technically a rental agreement a small fee is usually paid at the end of the lease to transfer ownership of the equipment to the customer. As most commercial gym equipment has a life expectancy of around 5-10 years this is a good way to fund the investment and is probably the best choice for schools, hotels, hospitals etc where always having the latest equipment is not the first priority. The second option is to return the equipment and upgrade to the latest innovative kit with a new/continued lease. Almost all mainstream health-clubs choose this type of lease option as they have to offer the latest equipment to help with membership retention and recruitment. Fortunately most private gyms don't need to do this as the personal aspect of the gym pays much larger dividends than offering the latest gadgets. Hotels, schools, and hospitals certainly don't need to renew their equipment every 2 or 3 years and this type of lease would probably not be the best option for them.
In a word, no. Leasing is not always the best choice and because Fitness Options is not an agent or broker for any lease company and because we take no fees or commissions, we will always be able to offer truly impartial advice to make sure your fitness facility makes best use of it's valuable funds.
Need more advice? please contact Karl Viner on 0115 946 3085
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