Whether you are looking to open a new tanning salon
, upgrading your existing salon or treating yourself to a home tanning bed, deciding whether to lease or outright buy your tanning equipment is a decision you are going to have to make.
In general if you are purchasing a home tanning bed you probably would not want to lease it unless it was for a short amount of time because you would never own the bed and just make monthly payments to use it. In the long run its best to buy residential tanning beds because you save in the long run and own the equipment when your monthly payments are up.
Leasing is a great option when opening a tanning salon because it enables you to make a low down payment and lower monthly payments than a loan. With a lease your credit doesnt have to be as good as with a bank loan. This is why leasing has become so popular with startup salons. Instead of having a large down payment you just need decent credit and a co-signer and you can lease virtually everything you need for your tanning salon meaning your business can more easily turn a profit in the first year.
Leasing tanning equipment also lets you stay ahead of the curve of the tanning industry, meaning you can replace your equipment every 2-3 years and have the newest and best tanning beds out. Having the best equipment attracts the best clientele. There are different types of tanning salons. There are the cheaper salons which have older tanning beds and offer monthly tanning plans at a reasonable price. There are also the high end salons which offer high pressure tanning beds, oxygen tanning and other additional treatments. These salons are typically more professional and charge more for their higher end services.
Leasing equipment also allows you to reap the tax benefits a lease provides you should check with your financial and tax advisors on the advantages of leasing equipment in your state.
Overall its a decision you will have to make. If you are looking to get into business quicker or are in a time crunch the lease option is the best. It also gives you more financial stability during the start up process. However in the long run buying the equipment out right will be a cheaper alternative but you wont have the option to trade the equipment in for new models.