Helping gyms, fitness clubs and studios finance equipment 

You don’t need your fitness equipment to last forever, in fact, you probably want to be able to upgrade regularly. This means that buying outright probably doesn’t make sense in most cases. Leasing, on the other hand, provides the twofold benefit of breaking down a large upfront cost into smaller regular payments, and allowing for regular upgrades without the hassle of trying to get rid of second hand equipment.  

By leasing, you get to keep more of your cash to use in other parts of your business, where it can be put to better use.

Once you have decided to lease, you need to decide on the structure of the lease, because there are a wide variety of options. Some leases are structured so that you own the equipment at the end of the lease period, whereas others are in essence a rental contract where you return and/or upgrade equipment. Some include maintenance of the equipment, whereas others don’t. The structure you choose should reflect the structure of your business, including how you intend to use the equipment as well as your cash flow. Working with an industry specialist can help you determine the best structure for you. 

For example, we can help keep monthly payments at a minimum by keeping a larger residual value for the equipment on our balance sheet, not yours. This means that at the end of the lease term, you have the option of returning the equipment without worrying about having to sell it off. The last thing you need is to find yourself stuck with an out-of-date-machine that you still owe money on, (in the form of a residual payment), but can’t sell.  

Ideally, the length of your lease should match the useful life of the equipment. Your Eclipx Commercial specialist is familiar with different types of fitness equipment, will help you tailor your lease accordingly.

Some equipment is more prone to damage and may need repairs during its useful life. Repairs can be expensive, and if this is likely to be the case, you may prefer to have the cost of repairs priced into lease payments. If your equipment is less likely to break down, or need repairs, so you may not wish to pay for maintenance. 

This way you simply either return the equipment to the manufacturer for repair or for it to be repaired at no cost on site.

In the case of fitness equipment, the answer is probably yes. If this is the case, then your finance arrangement should allow for flexibility at the end of the term. Eclipx Commercial can structure a lease which allows you to decide at the end of your term if you would like to keep the equipment or upgrade it for a newer or different model.