Tag Archives: commercial fitness equipment lease

5 steps to negotiate your next business equipment lease.

5 Steps to Negotiate Your Business Equipment Lease

Loaning money is becoming more and more difficult. Small businesses seeking finances are seeing how difficult it is becoming and the increased requirements just to get credit checked. Lenders are taking a much harder and closer look at which businesses they will finance. In the information below you will find five steps to negotiate your business equipment lease and what every owner should consider when applying for a lease.

Step 1: Know the difference between want and need
For business owners, big and small, it is important to understand what your company needs to be effective and continue to grow capital. And for start-up businesses it is essential to understand what your company needs versus what you want. Create a budget based on that need and look at what you will need in order to fund and/or finance that need. By keeping in mind the “needs” of your company, you will keep yourself from financing the unnecessary equipment.

Step

to read the entire article go to http://assuredlease.lifestyleezine.com

Equipment Leasing Blunders That Can Cost Your Firm a Mint

Equipment Leasing Blunders That Can Cost Your Firm a Mint

Rod McHenry, the financial vice president of a document imaging company, thought he had great cause for celebrating. He had signed an unbelievable $370,000 lease proposal covering computer servers, workstations, software and other networking equipment. McHenry believed he had snared an incredible lease rate, capping off weeks of negotiating an acceptable equipment price with the equipment vendor. The proposal guaranteed a lease closing and offered a return of the 2% ‘commitment fee’ paid by McHenry’s company if the leasing company failed to give credit approval within two weeks. Little did McHenry know that signing this proposal would lead his company into the ‘Twilight Zone’ of equipment leasing. Ultimately, his firm would fork out more than $15,000 in legal fees seeking lessor performance, only to learn that the lessor was already insolvent and mired in several similar lawsuits.

Like McHenry’s employer, thousands of U.

to read the entire article go to http://assuredlease.lifestyleezine.com

Getting capital for tanning beds isn’t what it used to be

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

to read the entire article go to http://assuredlease.lifestyleezine.com

How Does Fitness Equipment Leasing Work?

There are varying types of fitness equipment leasing plans. Some, such as the fair market value (FMV) plan, offer flexible terms with lower monthly payments. Fair market value usually provides options at the end of a lease term, including purchase, lease extension, or lease termination and equipment return. The $1 buy-out plan is an option for those with definite intent to purchase. While payments are usually higher than other plans, at the end of the lease term lessees can buy the equipment for $1 Dollar.

Another common type of leasing plan offers mid-range payments and terms that fall between the FMV and the $1 buy-out plan. This type of plan typically allows the option to either buy or return the equipment at the end of the fitness equipment leasing plan. Purchase price is set at a fixed percentage of initial equipment cost, usually 10-12% of the equipment cost or amount financed. Individual fitness equipment retailers may also have unique plans specific to their business model

to read the entire article go to http://assuredlease.lifestyleezine.com

Leasing as an alternative to buying

Equipment leasing is an option that allows companies to acquire everything from restaurant equipment to corporate aircrafts without the initial outlay of cash.

The basic concept of leasing is the borrowing of equipment over time in exchange for money through a long-term capital investment (renting to own over a period of five to seven years) or a short-term operating lease (the option to purchase or return the asset at the end of the contract period).

There are many advantages to leasing equipment:

  • Financing: The option to use equipment-leasing companies can allow startup and expanding companies to purchase or borrow new and used equipment without the initial cash output, often allowing 100 percent financing, where the loan method may require a deposit of up to 25 percent.
  • Credit: In the current economic climate, cash flow can be tight and companies can find it difficult to obtain bank loans for equipment. According to the Equipment Leasing and Finance Association, credit standa

to read the entire article go to http://assuredlease.lifestyleezine.com

Operating VS Capital lease

Many a company will need to decide whether it wishes to lease the equipment in the form of a capital lease ( $10.00 buyout), or use an operating lease (10% buyout); they also should know the difference between these two forms of financing. There are a number of differences involved when considering either form, particularly how the leased asset is accounted for. One must consider the company’s credit rating, how long the equipment is going to last, and when it will become obsolete. Taking into consideration all of these factors should help in deciding the better option for each company.

While accounting with an operating lease, it will be treated as an out and out expense and will find mention in the income statement and it will not impact the ratio of debt to worth, or any other balance sheet ratios that will have any significant impact on the creditworthiness of your company or business. As a long term option, your business may end up paying more for this form of lease rather tha

to read the entire article go to http://assuredlease.lifestyleezine.com

Chosing the right lease partner part 2

Finding an equipment-leasing company is easy. Almost any equipment a business could conceivably need offers a lease option. Thought it’s not apparent at first glance, the company offering the lease financing is not the same one that is selling the equipment. The company selling the equipment simply makes a direct referral to a leasing company with which it does business.

It’s a good idea to get a quote from the leasing firm referred by the company that wants to sell you the equipment. The quote should be competitive. After all, the company selling products wants to sell as many as possible, and it surely doesn’t win any points by referring a leasing company that gouges its customers. But it also pays to get another quote. Usually, the company selling the equipment works with more than one leasing company. Or ask a friend or a business associate for a referral.

As a final point, when looking for a leasing company you should understand whether you are talking to a broker-the person

to read the entire article go to http://assuredlease.lifestyleezine.com

Chosing the right lease partner part 2

Finding an equipment-leasing company is easy. Almost any equipment a business could conceivably need offers a lease option. Thought it’s not apparent at first glance, the company offering the lease financing is not the same one that is selling the equipment. The company selling the equipment simply makes a direct referral to a leasing company with which it does business.

It’s a good idea to get a quote from the leasing firm referred by the company that wants to sell you the equipment. The quote should be competitive. After all, the company selling products wants to sell as many as possible, and it surely doesn’t win any points by referring a leasing company that gouges its customers. But it also pays to get another quote. Usually, the company selling the equipment works with more than one leasing company. Or ask a friend or a business associate for a referral.

As a final point, when looking for a leasing company you should understand whether you are talking to a broker-the person

to read the entire article go to http://assuredlease.lifestyleezine.com

Chosing the right lease partner

 

Not all leasing companies offer the same kinds of lease services. For instance, there are lease companies that exclusively cater to businesses in particular industries. Some lease providers offer specialized machines for specific businesses. You may also find lease companies that only offer vehicle leasing. Then there are leasing companies that are like a one-stop shop where you can acquire all types of business lease services.

When it comes to getting approval, the standards will also vary from one lessor to another. There are lease companies that have very strict standards while others may be more lenient in approving lease applications. In fact, you can find certain business lease companies that provide special lease programs for new businesses with no credit history and for businesses with bad credit history.

The amount of available financing will also be different depending on the leasing company. Some lease providers will offer lower financing (under $100,000) than others. I

to read the entire article go to http://assuredlease.lifestyleezine.com