Nowadays, when money is tight due to the global recession, the concept of fitness equipment leasing is an attractive alternative for businessmen. However, as appealing as it is, there are some things to be considered when considering an exercise equipment leasing. When you have successfully ironed out the terms of the lease, you can then enjoy its benefits.

Ask Questions and Settle Terms

A lease on fitness equipment must be approached on business terms even when lessor and lessee have a pre-existing personal relationship. This way, you are both protected on many fronts such as legal ownership, tax concerns and maintenance issues, not to mention preserving personal relationships.

With that said, you must ask three basic questions of the prospective lessor in a fitness equipment leasing transaction. First, ask the type of leases available. Each will have its advantages and disadvantages so asking the specific type of lease will stand you in good stead.

There are two basic types of lease. One, in an operating lease, the lessor retains legal ownership of the equipment. Two, in a capital lease, the lessee is provided with legal ownership and the benefits associated with it. Ask your accountant or lawyer which one will suit your business needs best.

Second, ask for the period with which the lease is in effect. This is very important as you have to factor in the serviceable life of the equipment being leased in comparison with the estimated time in which you have to upgrade and/or equipment technology will change.

Simply put, you don't want to be stuck with a fitness equipment leasing deal with exercise machines that are either in dilapidated conditions or in outdated modes. If possible, opt for a lease agreement where you can pre-terminate it.

Third, ask for a buyout option. You might want to consider buying out the equipment at then end of its lease term especially when you foresee a lengthy serviceable life and slow technological advances related to it.

Again, carefully consider the terms of the buyout. You don't want to pay more than the value of the equipment at the end of the lease term. You have two options in this matter: a buck out option or a current market value option. Ask your financial adviser about the appropriateness of the terms according to your business plans.

Only when you have been satisfied with the terms of the fitness equipment leasing contract should you affix your signature.

Financial Benefits and Business Advantages

And once you have put your pen to paper, you can enjoy the following benefits of the exercise equipment leasing:

* You can offer your clients the newest in fitness equipment without putting your precious capital on the line. After all, you are just leasing, not buying, the machines!

* You will avoid the high finance rates associated with borrowing money to fund the purchase. Instead, you only pay for the set rental, which can be recouped with more gym memberships.

* You can avail of the tax benefits especially in an operating lease contract. Any tax you pay on the equipment can be deducted as an operating expense.

Indeed, a fitness equipment leasing contract is an economically viable option for getting your gym business off the ground. The trick is in asking the right questions and getting the right terms so that you can enjoy the benefits.

About the Author:

For more information on used home gyms visit http://www.1-stop-fitness.com/

Author: Mike Singh