Leasing

Leasing of Equipment

The leasing of fitness equipment may benefit your business for these good reasons:

• Get the new equipment you need immediately by making manageable monthly payments rather than making a large up-front purchase.
• Lock-in your interest rate with fixed monthly payments to avoid inflation.
• Reduce taxable income by claiming the lease payments as an operating expense.
• More cash flow through fixed monthly payments, affording other expenses such as marketing or leasehold improvements.
• Keep members happy by replacing leased equipment at end of term with new leased equipment, allowing you to offer the latest in new equipment that operates more efficiently, with less downtime.
• Phase in a small amount of new leased equipment every year so that you always have some new equipment with none older than the term of the oldest lease.
• Small annual lease acquisitions free up more capital rather than taking a big financial hit every three or four year term.
• Your corporate structure may permit you to lease equipment through an operating budget rather than capital budget, hence freeing up capital budget for other acquisitions.
• There is no penalty if you pay your lease in full before the end of the lease.