Leasing Gym Equipment
Running a gym or fitness club comes with many challenges and one of these is constantly keeping fitness equipment up to date. Clients have an expectation that they will have access to the latest equipment and the reputation of a gym can suffer if anything in it is perceived to be tired or out of date. One way a club owner can finance constant updating or expansion is through leasing.
Essentially an equipment lease is an agreement with a financial organisation such as GRENKE where the business has the use of the equipment while making set monthly repayments for specific term. This term is typically 12 to 60 months in length.
Leasing can be used to finance different types of fitness equipment and non-fitness too. Your business might have a need for strength or cardio equipment, lockers, IT systems or machinery. It’s important to be aware that the repayments must be made as agreed, otherwise the asset can be seized.
One of the main benefits of leasing is managing obsolescence – cardio equipment for example, is constantly evolving and you may want to upgrade it continually. When you lease, you get to use the equipment for the period of the lease and then return it and begin a new lease with the latest version.
Another major benefit is that it helps manage your cashflow and conserve working capital. You know exactly what your monthly repayments will be and you don’t have to pay a large sum of money up front. This is really important for your business.
There may also be tax benefits to leasing which will help your business too. We recommend talking to a professional accountant or tax advisor to confirm this at it may be subject to change.
It’s important to understand that when you lease equipment, you have the use of it for the term of the lease but you don’t own it outright. There may be an option to purchase at the end of the lease. Also, you will pay interest so the asset will cost more than if you purchased it outright.
Gym or fitness club owners who wish to explore the option of equipment leasing should talk to an expert financing company who has specific fitness and leisure industry experience. GRENKE has provided leasing to all sorts of businesses including the fitness sector for over 40 years. Talk to us today about custom finance solutions for your gym.