Stay financially flexible with innovative options
Industry insiders know: If you don't want to chase the trends in the fitness sector, you have to invest regularly in appropriate equipment and facilities. The trick is not only to recognize upcoming developments early on, but also to manage their financing. And to do so in such a way that even seasonal declines in sales and rising operating costs do not cause the company to falter. Leasing and installment plan are flexible financing options and have long been common practice in the industry. But which financing is suitable for whom? And what should operators of studios and rehabilitation facilities look out for?
Leasing: Clear basis for calculation
"Regardless of whether directly from the manufacturer or in the so-called secondary market - leasing is always an alternative to purchase," knows Frank Adler of abcfinance fitness solutions, the division of abcfinance specializing in the fitness industry. "The monthly leasing rates provide a clear basis for calculation and are fully tax deductible. This conserves equity," explains Adler. He works with the expanding "Just Fit" fitness chain, among others, and knows the market conditions well. When choosing a leasing contract, it is important that it
fits the respective business concept and the planned
development. In the case of a leasing contract with seasonal rates, for example, the rate amount adjusts to the respective business development and is lower in the low-turnover summer than in the strong winter months. This is particularly interesting for smaller companies that cannot cushion liquidity fluctuations, for example, over several studios.
Alternative financing with subsequent acquisition of ownership
In the so-called secondary market - the sale of used equipment - a so-called installment plan is often worthwhile, "because the Afa (depreciation for wear and tear) of assets expires after 60 months," says Frank Adler. In the case of installment plan, the investment object is immediately the economic property of the company - unlike leasing, where it belongs to the leasing partner until the end of the contract - and is immediately capitalized in the balance sheet. The total costs are spread over a contractually agreed term. Legal ownership is then also transferred to the operator with the final installment.
Framework agreement: Financing commitment already before the investment
For those who want to decide at short notice and take advantage of favorable offers, the framework agreement is ideal. With this financing commitment in his pocket, a studio operator can make purchases from various suppliers, for example at a trade show. Subsequently, all purchases are added up and summarized in one installment. "Customers of abcfinance can bundle up to 15 different suppliers in one contract," confirms Adler. That is rather unusual on the market. At all, the market: the offer at leasing offers is large. When choosing a financing partner, attention should be paid to the flexibility of the contract, so that the financing gives room for maneuver and does not restrict.
Over abcfinance GmbH
abcfinance with seat in Cologne is specialized for over 37 years in Mobilienleasing and Factoring for medium-size enterprises. A total of around 520 employees work at the Cologne head office and twelve other branches in Germany to date, as well as subsidiaries in the Netherlands and Austria and the company's own abcbank. With abcbank, abcfinance has a credit institution that specializes in the refinancing of receivables from leasing and factoring transactions. The companies belong to the globally operating Werhahn Group.
More experiences you under: www.abcfinance.de
Picture source: abcfinance, #396141843 DenisProduction.com / Adobe Stock
Published on: 1 August 2014