Have you been interested in trying to lease arcade games for a while? Arcade games may seem “old” to most people, but there’s always a niche community who admire and appreciate retro style gaming that arcade games provide.
This is why there will always be a market for arcade gaming, as long as there’s a decently sized community that enjoys gaming in general.
But for a business owner that wants to start up a new business around arcade games, they not know to get started with leasing. Not knowing how much leasing arcade games costs can be a deterring factor for anyone just starting out.
So how do you go about actually starting or growing your arcade business with leasing?
Understand Your Personal Business Goals
Before you even look at financing, you have to know what your goals are with your business. If you’re already established, then you probably already know what your long term goals. But if you’re looking to grow your business and want to use outside financing, then you need to search for unique or effective ways to utilize that kind of financing.
For example, an established business might use arcade game leasing to purchase a one-of-a-kind arcade game that is fairly unique, which may draw attention from your community or even neighboring arcade game loving communities. You could also consider using financing to help run promotions to draw more attention to your business.
On the other hand, if you’re just starting out, then the “goal” for arcade game lease is pretty simple: acquiring arcade games. Without arcade games you won’t have a business, so generally speaking most of your arcade game leasing will go directly to building an inventory of popular and fun arcade games.
What does arcade leasing cost?
After you’ve decided that arcade leasing is right for you, you know what your credit is, and how long you’ve been in business, you can start to figure out how much your average monthly payments will be.
I’ll start with an example: wanting to lease family fun equipment at a cost of $75K, paid over a period of 2 to 5 years. Let’s assume you have a decent (650) credit score and over 2 years in business.
The following are the estimated monthly payments you would have to make based on the duration of your lease with a $1 buy out:
- 2 Years Lease - $3,375/mo
- 3 Years Lease - $2,333/mo
- 4 Years Lease - $1,818/mo
- 5 Years Lease - $1,505/mo
Let's say you're a start up asphalt company: wanting to lease arcade equipment, paid over a period of 2 to 5 years. Let’s assume you have a decent (650) credit score and under 2 years in business.
The following are the estimated monthly payments you would have to make based on the duration of your lease with a 10% PUT buy out:
- 2 Years Lease - $1,915/mo
- 3 Years Lease - $2,633/mo
- 4 Years Lease - $2,179/mo
- 5 Years Lease - $1,915/mo
Use our arcade equipment leasing calculator to calculate how much your arcade equipment leasing payments could be and how much arcade equipment you can afford to buy based on your monthly budget.
Know Your Family Fun Business Financials
Once you know what the main objective of your business financing is, you need to thoroughly know what your financial status and information is. You’ll need to know the following (some of which may not apply if you’re just starting an arcade business):
- Your credit score
- The number of years you have been in business
- How much you have done in sales in recent years
- How much of your sales has been profit or loss
Watch Out for Illegitimate Offers
The web can be a great place to get information, and generally speaking you’ll find the answer to any problem you have online.
Or at the very least, you’ll be able to reach out to someone who does know the solution to your problem.
But when you start looking for arcade financing, you need to be careful that you’re not falling into the hands of an arcade financier whose only interest is profiting off of you, with no interest in the success of your business. In these cases, it’s unfortunately not uncommon for these kinds of financiers to skirt the truth.
They may advertise and promise one kind of deal, but once you’ve committed, you’ll realize that it was only partially true. Some arcade equipment leasing companies even go as far to ask for a “deposit” before they even ask anything about you, your financials, or your business.
This is why it can seem like figuring out leasing arcade games costs is difficult, because not every financier out there will give you a straight answer.
Always keep an eye out for arcade equipment finance companies who are only out to profit off of your dream and ambition. Make sure to spend time working with a financier who will first focus on understanding your goals and your financials before they even ask you for any kind of agreement.
Wait! What are the tax benefits for my business with arcade equipment leasing?
We get asked this question a lot. An arcade business can structure their arcade equipment lease on a FMV buy out agreement and write off 100% of their payments off their taxable income.
When you structure your bulldozer financing on an equipment financing agreement or on a $1 buy out lease agreement you get section 179 tax benefits. With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act, the deduction limit for Section 179 increases to $1,000,000 for 2018 and beyond.
If you want to spread out your tax write off over time than choose to depreciate the arcade equipment over its useful life or select a FMV buy out equipment lease agreement and get a much larger tax write off each year you have the arcade equipment lease open.
Ready to Apply online for arcade equipment leasing? Feel free to call Trust Capital and speak with an arcade equipment leasing specialist that can take your application over the phone at 866-458-4777.