Personal Fitness Professional - January 2008 - (Page 18) equipment lease, the only thing held as collateral is the equipment being financed, so there are no worries about attaching your home or other assets as additional collateral. Tax Deductions Section 179 of the Internal Revenue Code allows you to fully deduct the cost of some newly purchased assets in the first year (in 2007, you could deduct up to $112,000 in equipment). Although not all equipment is eligible for Section 179 treatment, you can still receive tax savings for almost any business equipment through depreciation deductions. The best way to approach the equipment leasing puzzle is to speak with a trusted and well-respected equipment leasing company that specializes in fitness equipment. There are many good lease companies, but if they don’t specialize in fitness, you probably won’t have much success with them. Check with your Business Better Bureau (BBB), and ask your vendor for referrals. Also, call a few lease companies. As an experienced trainer and/or club owner, you will know within minutes if the person on the other end of the phone knows the difference between an elliptical and a treadmill. honest with them about your goals and financial situation, and they will be able to guide you towards the best possible solution. Once you’ve chosen your lease company, they will be a valuable tool for you in growing your company and moving forward. Experienced lease companies attend trade shows, speak with the vendors and are constantly looking at new equipment. They know what is working for other clubs and what isn’t. A good lease company could provide a wealth of information to help you decide which equipment will generate more profits! Debbie Neumann, Director of Financing for Amerifund, moved from New Jersey to Arizona 13 years ago. She first connected with Amerifund when she opened a personal training studio, for which she had financed her equipment through Amerifund. She’s been with the company for eight years, and her professional background has been in finance for most of her professional career. Debbie has also always been involved in fitness in one form or another, so moving on to fitness equipment financing is a perfect fit for her. For more information, contact Debbie Neumann at 800.211.3071, ext. 110 or debbie@amerifund.cc. ● More Qualified than You Think Many people think they won’t qualify for a lease if their credit is less than perfect, which is far from the truth. There are many programs available, even for clients with prior bankruptcies. The rates will be slightly higher, but if your profits are more than your monthly payment, equipment leasing may be the solution for you. Some Disadvantages of Leasing There are some disadvantages also. Equipment leasing is not for everyone, all of the time. When you sign a lease, you are committing to payment terms, and most leases cannot be cancelled. This means that if you commit to 36 monthly payments, then you are liable for that. Be sure your lease term and the anticipated life expectancy of the equipment you are leasing coincide with each other. There’s nothing worse than making payments on that treadmill that died three months ago! Pick the Right Equipment Leasing Company The key to all good relationships is honesty, so find a company you trust. Be 18 JAN-FEB2008 · WWW.FIT-PRO.COM http://www.acefitness.org/ACELive http://www.acefitness.org/ACELive http://WWW.FIT-PRO.COM
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