Gym and Fitness
Offer the best and latest equipment in your gym.
Gym and fitness centre incomes have been hit hard in recent years, leaving some struggling to maintain their cash flow while offering the best and latest equipment. Whether setting up a new gym or trying to entice customers back through the doors, you need attractive, modern and practical gym and fitness equipment.
Financing gym equipment through leasing options can offer businesses attractive and tax-effective ways to obtain much needed, up-to-date equipment. Working with Charter Hall provides access to asset finance tailored to your needs.
Machinery finance considerations for obtaining gym equipment
Are you a new gym owner or an established gym that needs to modernise its equipment?
Outfitting your gym with the equipment needed to attract new members and retain existing ones can seem overwhelming. Upfront costs can consume your budget and leave little for other vital elements like staff wages and marketing.
Leasing some or all your gym equipment is one solution.
Spreading payments over several years can free up your cash flow, allowing you to run effectively and consider expansion as your gym grows in popularity.
When you finance gym equipment through leasing or hire purchase, you increase your flexibility, allowing you to upgrade equipment without needing to find capital or the burden of selling equipment to find the capital.
However, before you decide on hire purchase or leasing, you should consider:
Determining the right machinery finance package for you
The life span and amount of use you will get from your equipment are vital considerations when deciding whether to lease or purchase outright. If you are buying outright, you are gambling that the equipment will earn more money than its initial cost.
The risk of damage or becoming obsolete will play a vital role in whether the gamble pays off. Racks, benches and free weights are examples of the long-shelf-life category.
Electrical equipment or anything with moving parts is harder to predict as damage, breakage, and innovation play more critical roles. Asset finance may therefore be more appropriate.
The equipment’s role in your gym
The more popular a piece of equipment is, the more likely it will pay for itself. However, this needs to be weighed against the increased wear and tear and maintenance costs if you own it outright or have chosen a hire purchase agreement.
Opting for fitness equipment financing where the lessor retains ownership can help offset replacement and repair costs.
If your most popular gym equipment breaks and you have no way of replacing the equipment, you could find you lose customers. Sourcing replacement equipment without available capital is much easier if you have access to machinery finance tailored to your needs.
Leasing can also give you the flexibility to try out new equipment and gauge interest without committing resources long term. You can move with different trends without ending up with piles of worthless equipment when the trend ends.
Your longer-term business goals
Choosing between purchasing or leasing your gym equipment affects your immediate cash flow and operating costs.
Fitness equipment financing provides you with the tools for growth. It frees up capital and gives you access to state-of-the-art equipment. However, the ongoing lease payments also thin your profit margins.
Outright purchasing puts a dent in your operational budget and marketing outlay. It limits your short-term growth potential but maximises profits, as long as you don’t come across unforeseen issues with equipment, changing trends, or clientele changes.
Before you finance gym equipment, you need to consider your short- and long-term goals, the potential issues you face as an individual gym and trends in the wider sector.
Talk to our experienced team at Charter Hall. We will guide you through the different options and provide a tailored package that meets your needs now and in the future.