Leasing equipment for your gym
- Red Gym owners can avoid the upfront costs of stocking a new space with leasing arrangements
- Amber Gym equipment can be maintained and repaired as part of the leasing contract
- Green A lease provides a flexible way to finance but also offers tax benefits
Looking to equip your gym but cannot afford to pay the full price upfront for new equipment? Why not consider leasing fitness machines and free weights?
What is gym equipment leasing?
In simple terms gym equipment leasing is a form of finance that gives you the opportunity to provide workout equipment for your clients without the need to pay for everything upfront.
For new gym owners, stocking an empty space with equipment is a daunting prospect. The costs for isolation machine stations and free weights can stack up quickly and the price for expensive equipment like treadmills, elliptical trainers and rowing machines can seem prohibitive.
Fortunately, gym owners can avoid the upfront costs of stocking a new space through leasing arrangements with equipment providers. Although the total cost to rent gym equipment may significantly exceed the total price of the assets, there are many more benefits to be gained through the arrangement.
The benefits and advantages of gym equipment leasing
Firstly, the costs are spread out over the length of the lease arrangement, which can vary from supplier to supplier but is typically between two and five years. A lease provides a flexible way to finance but also offers tax benefits as lessees can deduct a percentage of the costs associated with a piece of equipment from their taxable profits. And crucially, spreading your payments means your cash flow can remain healthy, supporting other investments in your business.
Secondly, you will typically be able to have your equipment maintained and repaired as part of the leasing contract. This will save money and give peace of mind. Your expensive assets will be serviceable over the length of the contract. In addition, if your equipment is damaged beyond repair it can be replaced with a newer asset.
Another benefit of leasing gym equipment is that you can usually replace a machine if it becomes out of date. Likewise, if a station is not popular with members, you may want to put your gym space to better use with different equipment.
The terms and conditions for finance, maintenance and replacement of assets will vary from supplier to supplier so always be sure to check the contract.
How does gym and fitness leasing work?
There are a number of specialist fitness equipment leasing companies that are well-suited to helping gym owners. The process varies slightly depending on the leasing company but they all follow similar procedures.
Once you have submitted a request to lease gym equipment, the company will produce a cost estimate. The company or its financial partner will provide a leasing offer and terms and conditions. However, you will typically need to supply financial and company information. This can include trading records and accounts, your credit score and information about company directors.
Assuming this information is agreeable to the finance company, the lease can be agreed quite quickly.
How much does it cost to lease gym equipment?
As with any leasing arrangement, you will end up paying more than the actual cost of buying the asset outright. But, as we’ve already covered, the outright costs of equipping a gym can be high and prohibitive.
The interest on monthly repayments will vary from supplier to supplier and be affected by the amount of money borrowed and the overall length of the leasing arrangement, but typical rates vary between five per cent for more established firms and about 15 per cent for new entrants.
How long does it take to secure gym and fitness leasing?
Specialist leasing companies promise a quick turnaround on decisions. Some offer a decision within 24 hours – and others in even less time.
What type of security do I need for gym and fitness leasing?
As with other kinds of asset finance, the asset being leased usually acts as the security for the finance arrangement.
However, some leasing companies may request additional security. This should be discussed and agreed before signing on the dotted line.