To Buy or Rent: Gym Equipment Financing Canada

One of the biggest decisions owners or facility managers must make when building a new fitness space is the question of renting or buying their gym equipment. Many fitness equipment suppliers provide the option to rent or buy equipment, mainly wholesale. Each option has its benefits, and whichever you choose should be based on your business’s circumstances.

Can you finance gym equipment?

To make sure all our members are provided with the latest and most durable equipment, Keystone Fitness provides financing options that everyone can afford to purchase. We offer the most common fitness equipment financing options in Canada: rent or lease-to-own (buying). As well as the opportunity to buy now and pay later. We’ve broken down the financing options to help your decision-making process.

Renting:

This is typically the most cost-effective option in the short run. Renting equipment typically requires you to get an operating lease. This allows the renter to retain formal ownership of the equipment while you are granted permission to use it for the life of the lease.

Benefits of renting:

You can focus more on the value of products and not the cost: When renting equipment, you don’t have to worry about paying the entire cost upfront but rather pay in regular amounts over time. Since gym equipment is a sizable investment, renting lets you see what brands, or a variety of equipment works best for your guests or business before making a more permanent investment.
Offer your members the latest equipment: Renting may be a better option for you if you plan on upgrading your equipment regularly. Rather than letting your existing equipment become dated, renting allows you to upgrade or replace your equipment as new technologies arrive. This gives you a competitive edge and keeps your members happy.
Tax savings: No matter how small your business is, you may be eligible for a tax deduction if your equipment is calculated as an operating expense. Renting also offers you an opportunity to make your monthly payments pre-tax. This means that after deducting your monthly payments from your revenue, your business’s taxable income is lower and can save you money.
Maintenance support: Many vendors like Keystone Fitness provide members with ongoing maintenance services, typically lower in costs than one-time services. This gives you peace of mind without worrying about what to do when issues arise with your machines.

Buying:

You might pay a lot of money upfront, but you will get full ownership of the equipment purchased and can use it however you like. The return window for gym equipment may be limited, so you must try the equipment often if buying for your home gym to make sure you are satisfied with your purchase.

Benefits of buying:

Cheaper in the long run: Purchasing outright with the cash available is one way to avoid interest payments from loan financing altogether. Even on our lease-to-own program at keystone fitness, we only usually require a low initial payment and create an affordable monthly payment plan fit for your needs.
Customizations: The fun part of ownership. You can decide to put your brand’s logos or colors for aesthetics on your equipment. When your customers enter your gym, it can provide a sense of community in your facility, improve customer experience, and even attract people to join.
Option to sell for upgrades: Buying new equipment can be expensive, but your outdated equipment gives you assets. Selling old inventory can offset the cost of new items you want. If you are ever in a situation where you’re selling your business, your equipment can provide added value. Potential buyers may be interested in not spending time or money to find new equipment.
You can rent out your equipment: When the COVID-19 pandemic first arrived and brought uncertainty, many businesses, including gyms, had to shut down temporarily. The pandemic brought a rise in sales of advanced in-home fitness equipment. When your members have to stay home and equipment becomes unused in your space, owners can rent out equipment to their members who need them for their daily workouts. This provides profit to you as an owner and helps your members keep active memberships.

The main difference between renting and buying comes from ownership type and what your business can afford. Starting as a new gym owner can be overwhelming when deciding whether renting or leasing is suitable for your business model. Buying equipment is a wise investment for business owners because you can handle the upfront costs quickly and avoid a build-up of additional expenses as you make your payments. Renting as a business owner is beneficial if you cannot make a significant investment upfront or if you feel the need for ongoing maintenance from an external provider.

Keystone Fitness provides an easy step-by-step financing process and a team of advisors to help you find the right workout equipment payment plan. Visit our financing page to learn more about our financing options or to get started with an application.