Gym Equipment Leasing
We offer a wide range of gym equipment leasing products from all of the industry leading lease providers. We are not tied to any of these providers and do not receive any commissions, so the options we present to you are completely impartial. We might offer you introductions to different lease companies and you should choose the company that you like the best.
It is also important to point out that it makes no financial difference to us whether you choose to lease gym equipment or buy it. You should finance your gym in the best way for you. Our quotes will include outright purchase and lease financing costs. We will explain how the process works if you are considering leasing. For data protection reasons, we will not ask you to disclose confidential information. Any confidential information will be requested by the lease company only.
Should you lease your gym equipment or buy outright?
Asset finance allows gyms to acquire the equipment and assets they need in order to operate that they may otherwise be unable to afford. Gym equipment leasing can also free up working capital for use in other areas of your business and save you from having to take out a large loan to buy equipment outright. Gym equipment leasing involves renting it over a period in return for fixed rental payments.
If you have the capital available it will work out cheaper, in absolute terms to buy outright. Gym equipment leasing should not be considered to be a cheaper option, below we details some of the advantages and disadvantages.
Advantages of leasing gym equipment:
- you don’t have to pay the full cost of the asset up front, so you don’t use up your cash or have to borrow money
- you have access to a higher standard of equipment, which might be too expensive for you to buy outright
- you pay for the asset over the fixed period of time that you use it, which helps you budget for the future
- as interest rates on monthly rental costs are usually fixed, it is easier to forecast cashflow
- you can spread the cost over a longer period of time and match payments to your income
- the business can usually deduct the full cost of lease rentals from taxable income
- if you have not bought the asset outright, you won’t have to worry about any overdraft or other loan taken out to finance the purchase being withdrawn at short notice, forcing early repayment
- if you use an operating lease or contract hire, you may not have to worry about maintenance (this can be included but is not included by default)
- the leasing company carries the risks if the equipment breaks down (on certain leases only)
- on ‘long funding leases’ – finance leases over seven years and sometimes over five years; and some long operating leases – you can claim capital allowances on the cost of the assets
- if you need to upgrade or replace the equipment, you can simply make a small adjustment to your regular payment rather than invest a lump sum upfront
Disadvantages of gym equipment leasing:
- you can’t claim capital allowances on the leased assets if the lease period is for less than five years (and in some cases less than seven years)
- you may have to put down a deposit or make some payments in advance
- it will work out to be more expensive than if you buy the assets outright
- your business can be locked into inflexible medium or long-term agreements, which may be difficult to terminate
- leasing agreements can be more complex to manage than buying outright and may add to your administration
- your company normally has to be VAT-registered to take out a leasing agreement
- when you lease an asset, you don’t own it, although you may be allowed to buy it at the end of the agreement
You may also be eligible for tax reliefs when buying or leasing assets. You should check with your accountant.
How much can I lease?
We’ve created a useful calculator to allow you work out approximately what you can lease based on your monthly budget or work out the rough monthly cost based on a total value of equipment.