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The following article was published in our article directory on November 7, 2011.
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Tips to Lease Fitness Equipment

Article Category: Business Management

Author Name: Tom Cordova

Because people are getting more health-conscious nowadays, physical fitness clubs and gyms are sprouting everywhere. Due to this fact, one good business these days is to lease fitness equipment. Leasing physical fitness equipment is done through monthly payments with an agreed interest rate. A lessee just needs to give a down payment and to pay the leasing company a monthly installment for a given number of months or years. In this article are the steps to lease fitness equipment.

To lease fitness equipment, one can either give back the said equipment or buy them at fair-market value by the end of the lease term. A month before the lease expires, a person needs to provide the company a letter that he will either return the equipment or purchase it for himself.

If a person has gym equipment, he can lease it to physical fitness clubs that do not want to buy their own equipment because of the high cost. There are also offices that provide fitness equipment to their staff nowadays and would rather finance said equipment rather than buy them outright.

For those who have just decided wanting to put up a leasing company, the first thing to do would be to decide which equipment to lease as well as how and where to get it. After determining the kind of equipment, they must then look for a supplier of that certain equipment.

It is also necessary to fill out important documents in order to lease fitness equipment. The lessee must supply important answers in a leasing application form such as contact information and bank details. Other necessary documents are also required to be submitted. Approval of the application takes 2 to 3 days.

The lessee should ascertain the number of months or years they would like to lease the fitness equipment. The schedule could last up to four years. Leasing the equipment longer would mean decreased monthly payments.

The lessee has the option buying the equipment at the end of the term. Leasing companies always have such buyout options and plans. The business firm that leased the equipment can purchase them at a fair-market value. The firm can also choose to buy them at 10% of the advertised cost. The firm can also purchase the equipment for only a dollar. This is called a dollar buyout.

Instead of buying expensive equipment at one time and spending thousands of money, leasing will allow an owner of a gym club to spread his payments and invest his money on other things. If he makes profit on his business, he could allot a part of that to the leasing company every month. This is more practical and easier on the budget than buying huge equipment at one time that eventually shall depreciate. One good thing about leasing is that the lessee will always have the option to buy the equipment at the end of the term for a very minimal sun. For those starting a physical fitness business, it is more advantageous and practical to lease fitness equipment.

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