When thinking of a tutoring center I envisage a friendly space with randomly placed tables and chairs and soft pillows and bean bags and murals on the wall, tactile fabrics and …….. yes I’m a child of the sixties! Regimented rooms never did anything for my desire to learn except remove it from my fragile clutches.
But where does the money come from for all these fabulous furnishings, not to mention the computers, faxes, copiers and various other pieces of hardware no business can do without? One of the more popular tutoring business ideas is leasing your key pieces.
On the up side, usually there is little or no requirement for a down payment and the documentation is way less, both the application and the credit history you will need to provide, versus attempting to secure a loan to purchase the same items. As tutoring business ideas go this could lead to more bang for your buck, not to mention the ease of not having to pay for repairs or upgrades. (Depends on your lease contract. Look for repair/maintenance and substitution clauses in the paperwork )
Furthermore, I am told by those qualified to do so, that there are tax and other financial advantages to leasing items in terms of lease payments being considered pre-tax and leases not affecting your ability to borrow for all the items you cannot lease, but as this is totally way beyond my pay grade I will refer you to your accountant for the nitty-gritty advice.
There are some common pitfalls to watch for when leasing a.k.a bad tutoring business ideas :
EVERGREEN: Check for an evergreen clause or automatic renewal. Don’t think that because the lease ends on a given date that it really will end on that date. Sometimes these clauses require you to give notice, like the day after you receive the equipment, that you will be ending the lease on the agreed date. Worse than this even, is the evergreen clause with increased payments, it self-renews and your payments automatically increase by 12 % or some other arbitrary figure. Daylight robbery of this nature belongs in period dramas, (fellow purveyors of fabulous furnishings!) and should be illegal. You have been warned!
DEPOSITS: Do not pay a deposit in advance of any lease or credit being approved. There is, in my opinion, no need to do this so my suspicious mind leaps to ulterior motives – they’re not going to give it back if the deal falls through.
Finally, please have your attorney review anything you ever sign and having done that please share your leasing experiences and advice with us in the comment section below. Any tutoring business ideas are open for discussion especially ones discussing fabulous furnishings and furry walls.
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