Tanning Bed Financing

So you have decided to go ahead and purchase your own tanning beds. That’s great, but if you are like most small businesses, you do not have the necessary funds that it will cost to do that. Buying a tanning bed is a major purchase and like all major purchases there is financing available. We have put together tanning bed financing tips to help you figure out how to go about getting financed for your tanning beds.

Tanning bed financing works just like leasing a car. You can choose whatever term works for you. Most of the finance companies will offer you a lease that starts at 24 months and goes up to 60 month. The current average for most small businesses is the 36 month lease.Using a lease to finance your tanning beds has many benefits, and not taking a large sum of money out of your working capital is probably one of the biggest benefits. With tanning bed financing you will need to only come up with first month’s payment and a security deposit in the same amount. This will leave you more money in your account.

There are also tax advantages to leasing your tanning beds. You should definitely talk to your book keeper or CPA before you sign the lease so that you can make sure that you receive the best tax advantages that you can receive. For example almost all your interest could be deductible along with some of the principle.

Many people want to know what happens when the lease is up. The answer is it depends on which type of lease you prefer. There are two types of leases, one that is referred to as the “$1 buyout” and the other one is the “fair market price” option. Which one is right for you really depends on what you need at the end of the lease.

The $1 option lets you make one final payment of $1 and the bed is yours. This is a nice option if you selected a short lease and your tanning beds will still be relatively new at the end of the lease. The other option gives you a guaranteed trade-in value at the end of your lease. This will be determined at the fair market value at the end of your lease. This is a good option if you plan to upgrade your tanning beds at the end of the lease.

When looking to expand your tanning bed business the best way to that is adding more beds. By using tanning bed financing you will be able to do that much more quickly and cost effectively. As with any lease make sure that you understand it completely before you sign, and don’t be afraid to ask questions if there is something you are unsure of, they will be more than happy to clarify any concerns you may have.