Arcade / FEC Leasing Vs Financing
/ Financing / Buying Options for Coin-Operated Equipment
Arcades can help you in ways that go beyond financing and leasing.
Because we understand all aspects of your business and have developed
an extensive network of contacts and information sources over the
years, we can provide an array of services that add value to our
relationship with you.
your games outright
your equipment outright is one potential option for your arcade or
family fun center (FEC). It requires the least amount of time and
effort, and you can take delivery of your equipment quicker than
other payment methods. In addition to start-ups that already have
funding in place, many small arcade, restaurant, bar and retail shop
owners choose to use their existing cash or savings, bank lines of
credit or home equity loans, or in some instances, even credit cards
to buy their games.
of Leasing or Renting
than 80% of all companies in the United States use leasing as a way
to purchase some or all of their equipment. Companies are using
leasing more because it has become more competitive over the years
and many feel they need to more closely watch their available cash
reserves and bank lines to meet unexpected changes in their business.
flexibility, improved cash flow and better use of your working
banks are reluctant to finance 100%. If they do, many times they want
larger down payments and require the loan to be secured by other
assets owned by your business. This does not allow you the
flexibility to structure a plan that best meets your business needs.
When leasing/renting, you can finance 100% of the cost of the
equipment along with the implementation and services required to get
your business operating. You will not have to pledge additional
assets and you can select a term that best meets your budget without
putting a strain on your cash flow.
payments you make for most lease/rental agreements can be treated as
an operating expense, allowing you to write off these payments and
not have to capitalize the asset. This not only provides you tax
advantages but also improves your company’s financial statements.
your working capital–
leasing/renting your software provides you the opportunity to
preserve your working capital and to use it for other growth
opportunities and income producing assets.