The health and fitness market is a more than $96-billion industry. With so many L.A. Fitness and Planet Fitness locations, it can be challenging for lesser-known gyms to compete.
Promoting your health club and keeping it open for business takes capital. Sometimes, though, you don’t have enough funds on hand to operate like you want or need to. That’s when you might apply for a loan for your fitness center.
Reasons to Apply for Gym Business Financing
Gym owners explore funding for their fitness business for a number of short- and long-term needs. Here are a few.
Buy Gym Equipment
Need to upgrade your old ellipticals and stairmasters? Want to invest in new technology for your gym? Or maybe you’d like to expand your service offerings by offering massage chairs or tanning stations. Whatever the case, fitness equipment financing can help.
Market Your Fitness Center
When you want to bring in more memberships, you need to advertise. Whether you’re looking to promote your gym or fitness center on a billboard or invest in paid online ads, a small business loan can provide the funds you need.
Maintain or Upgrade Your Gym
If your gym has saunas, an indoor pool, racquetball courts or other aspects that need to be maintained, the costs can add up. Alternatively, maybe you’d like to build a smoothie bar or a dedicated studio space in your health club. A gym business loan could give you the cash flow boost you need to cover facility maintenance, repairs and upgrades.
Cover Rent and Utilities
Not only do you have to keep your doors open to stay in business, but you need to be able to keep the lights on, the air-conditioner going and the water running. That’s likely several thousand dollars each month, and it can add up fast. Sometimes a short-term financial lift can maintain the status quo.
Want to hire additional personal trainers or onboard specialized professionals, such as nutritionists or massage therapists? Maybe you’re having a slow period and need to cover payroll costs. In any instance, gym funding for your business can help.
Best Gym Funding and Business Loan Options
Here are a few of the best funding options, whether you need fitness equipment financing or a working capital loan.
Business Term Loan
Good for a one-time funding need, a business term loan can be an option for a costly expense. These loans can be used for nearly any business need, whether you want new state-of-the-art equipment, need to finance the cost of a new hire’s salary or plan to upgrade your facilities.
Small Business Administration (SBA) loans are an alternative if you’ve been denied for a conventional bank loan and still want a competitive interest rate and repayment term. Because the SBA partially backs these, there’s less risk for lenders if a borrower defaults.
Fitness Equipment Financing
Fitness industry equipment financing can help you cover the purchase of new machinery for your health club. Typically, with this type of loan, the equipment serves as collateral. As such, you may be able to secure enough financing to cover the total cost of your purchase.
Business Line of Credit
A business line of credit is the most flexible type of financing. It functions much the same as your everyday credit card. If you don’t want to get caught off guard when an emergency expense arises, consider this type of gym funding for your business.
Merchant Cash Advance
A merchant cash advance is an alternative financing product for which many small business owners qualify, even if your credit score is considered poor. Because requirements are less stringent, this is an option if you’ve been turned down for other types of funding. In some cases, applicants can receive funds the same day as approval. The tradeoff is shorter repayment terms, usually daily payments and higher financing costs.
Working Capital Loan
A working capital loan is an umbrella term for multiple types of short-term financing. They’re also known as “bridge loans” because they’re meant to bridge funding gaps. Use funds to cover payroll, make your rent or pay for an unexpected expense.