Getting capital for new tanning equipment is more difficult than in the past because of how tight the credit markets have gotten as well as how much the tanning industry has suffered. These two in combination have it important to understand all the different options available to you. If you have the ability you can always obtain new equipment the old fashioned way by paying cash. This is usually not the best option though as it uses up cash reserves for no reason. If you have good credit or available collateral you can obtain 0% financing and have the cash flow of your business pay for new tanning booths over time. These expenses can be written off as an expense which will also help you come tax time.
First Possibility: Leasing
- Two most common options:
- Ten percent buyout
- The $1 buyout
Ten percent buyout – Choose a number of months to pay the tanning bed off in. Standard lengths are thirty-six, forty-eight, and sixty months. At the end of the lease you must pay ten percent o
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