How do buying and leasing affect opening cash?
A cash purchase concentrates equipment spending upfront; a lease spreads it over time. Either way, you need enough funds to open the site and operate it. Leasing here means business equipment financing, not booking a court by the hour.
Buying may suit a project with sufficient cash remaining after site works and operating reserves. Financing may suit a project that needs to preserve some of that cash and can support the monthly commitment through quieter trading periods.
How should you compare the total cost?
Compare payments over the same period and for the same services. For buying, add the equipment price, any excluded delivery and assembly costs, and planned maintenance. For financing, add the initial payment, recurring payments, fees and any final purchase or return cost.
Include site works in both scenarios. Avoid counting a service twice if it is already included. If maintenance is part of one proposal, allow for equivalent maintenance in the other.
The chart below compares first-year cash payments using the simulation catalogue. It does not show the full contract cost. Spending less before opening does not establish that leasing is cheaper over the full term.
What changes is WHEN the cash leaves: buying outright takes $112,600 up front.
What do you still pay for upfront?
Site works need a budget even when the court is financed. Our offer separates them from the monthly court payment. Survey, earthworks, foundation, drainage and electrical connections need to be assessed for the actual location. Confirm all inclusions and exclusions in the proposal.
The FIP specifies an internal playing surface of 20 × 10 m. Site plans also need space for circulation and access. An existing slab requires a technical assessment before it can be treated as reusable.
Use the US padel court construction cost guide to structure the opening budget. For a Canadian project, request local pricing with the currency and applicable taxes stated.
Can your operating plan support the lease payments?
Test the commitment against conservative booking assumptions. Estimate hours actually sold, the average collected price after discounts and periods when the court cannot operate. Deduct premises costs, staffing, insurance, energy and other expenses before assessing capacity to pay for the court.
An additional court increases booking capacity, but does not guarantee a proportional increase in revenue. Consider local demand, existing peak-time occupancy and additional expenses. Also model a delayed opening and a quiet season to establish the cash reserve the project needs.
Which contract terms should you check?
The monthly payment alone cannot establish which offer is better. Check the term, initial fees, required guarantees, maintenance scope, insurance, payment start date and early-exit conditions.
Confirm who owns the equipment during the agreement and what happens at the end: purchase option, renewal or return. Ownership does not transfer automatically unless the agreement provides for it.
Check that your right to occupy the premises is compatible with the equipment commitment. Accounting and tax treatment depend on the agreement and jurisdiction; do not assume every scenario produces the same tax saving.
Which option fits your padel court project?
Base the decision on available opening cash and sustainable payments. Buying avoids financing charges but leaves less cash available for launch. Leasing spreads equipment payments while creating an obligation for the agreed term.
Request a project proposal with your city, court count, site condition and intended opening date. Include the budget available for works and whether you prefer buying or financing. You can then compare initial payments, monthly commitments and contractual terms using the actual project scope.
