Step 1: Make sure the purchase is right for your gym or fitness center.
Compare the invoice price to the market value of the gym equipment. Determine if you’ll still need the equipment a few years from now or if it is likely to become outdated.
Step 2: Gather your documentation.
When applying for gym equipment financing, you need to provide the following:
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Driver’s license.
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Voided check.
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Bank statements from the past three months.
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Invoice for the fitness equipment.
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Financial statements.
Step 3: Complete the application.
Go to our application page or give us a call for more information.
Step 4: Speak to a representative.
After we receive your application, a senior director of operations will reach out to you. The director of operations will discuss your business needs and focus on the best gym equipment financing options tailored to your needs. We offer complete transparency, with no hidden fees or surprises.
You’ll get a complete breakdown of loan amounts, terms, interest rates, and fees. Once you have all the information, you can make an informed decision about your gym equipment loan.
Step 5: Get approved.
When your application meets underwriting requirements and gets credit approval, your gym equipment loan goes through.
Next, the money is paid directly to the equipment vendor to settle the invoice amount. The lender goes on the title with you until you pay off the loan.
We can help you set up automatic payments, or you can arrange to pay by check or electronic payment.
What are the benefits of Gym Equipment Financing?
Gym equipment financing enables fitness business owners to conserve their working capital by spreading the cost of expensive machines over time, rather than paying in full upfront. This helps ensure funds remain available for other essential expenses such as rent, payroll, and marketing.
Gym financing also provides access to higher-quality or newer equipment, which can elevate the gym’s competitiveness and enhance the member experience. Many lenders offer flexible repayment options tailored to the business’s cash flow, making it easier to manage financial commitments as operations scale.
The application process is typically quick, allowing gym owners to obtain the necessary equipment without delay. Additionally, depending on the financing structure, tax benefits may be available. Financing gym equipment separately can also help preserve traditional business credit lines for emergencies or future opportunities.
What are the drawbacks of Gym Equipment Financing?
Despite the advantages, gym equipment financing has some drawbacks to consider. One of the primary concerns is the added cost of interest and fees, which increase the total expense over time. Some lenders require a down payment, typically between 10% and 25%, which can be a challenge for newer gyms or businesses with limited financial resources.
Once a financing agreement is in place, the business is obligated to make regular payments regardless of revenue fluctuations, which can become burdensome during slower seasons. In some cases, the equipment itself or other business assets may be used as collateral, putting them at risk if the loan is not repaid. Additionally, gyms with limited operating history or poor credit may face difficulty qualifying or may be offered less favorable terms.
Gym Equipment Financing Pros & Cons List
Pros:
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Preserves working capital and cash flow
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Access to high-quality or newer gym equipment
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Flexible payment options
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Quick access to needed equipment
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Potential tax advantages & competitive rates
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Keeps business credit lines open
Cons:
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The total cost increases due to interest
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Some lenders require a significant down payment
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Monthly payment obligations regardless of revenue
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Equipment or assets may serve as collateral
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Qualification may be harder for startups or poor credit borrowers
Frequently Asked Questions
Here are the most common questions about equipment financing for gyms.
Is it better to finance or Lease Gym Equipment?
This is a question we are often asked, which ultimately depends on your unique business needs. With financing, you get to own the equipment outright. With gym equipment leasing, you don’t own the equipment, but you’re not committed to it either – you have more freedom to replace it as newer models become available.
It also depends on the projected lifetime value of the equipment. Free weights, for example, will have a long lifetime value. There is no new technology on the horizon to replace traditional weights. Treadmills and stationary bikes, on the other hand, could become obsolete in a few years as newer versions with enhanced technology emerge. Gym equipment leasing may be a more sensible option in such cases.
With a lease, you might be able to get a lower monthly payment. However, throughout the lease payments, including fees and interest, you could end up paying more than the equipment’s total value and not even own it.
Leasing might also be more accessible to newer gyms. Lower monthly payments can help you maintain a stable cash flow when you first start. The estimated cost of opening a gym can range from $50,000 to $3.6 million, mainly due to equipment financing.
When you finance gym equipment, you have more options once you repay the loan. You can continue using it in the gym, resell it to another gym, and use the money as a down payment on newer machines.
When researching whether to buy or lease, you will want to look at the following:
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Minimum monthly payments required.
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What your cash flow can afford.
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The projected lifetime value of the equipment.
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New technology trends that could make the equipment obsolete.
How quickly can you buy new Fitness Equipment?
You’ve done your research, decided to apply for a gym equipment loan, and now the obvious question is – when do you get the equipment? One of the advantages of working with an online equipment financing lender is the speed at which the loan is funded.
You will usually get approval within 24 hours of applying for the loan. Once approved, the bank needs to issue the funds. All told, it takes about 3-10 business days to fund the loan.
What are some alternative Gym Equipment Financing options?
An equipment loan is just one type of small business loan you can use to acquire equipment. Leasing is also an option. Leasing gym equipment is similar to a loan, except you don’t own the equipment outright.
Other gym equipment finance options include:
SBA loans are government-backed loans that support small businesses, making them attractive for gym owners. The Small Business Administration partially guarantees these loans. A business line of credit offers flexible funding that can be used as needed. You only pay interest on the funds you use.
Working capital loans are typically unsecured financing solutions to help cover everyday business expenses. Merchant cash advances provide an upfront sum of cash in exchange for future debit and credit card receivables.
Business term loans provide a one-time disbursement of funds, typically repaid with fixed monthly payments, for significant investments, such as equipment. Receivables factoring provides an advance on funds for unpaid invoices. Revenue based financing allows you to access cash in exchange for future revenue.
Other Financing Solutions
Traditional banks may also offer gym equipment financing, but qualifying for a traditional bank loan can be more challenging. A traditional bank loan offers some of the most competitive interest rates for financing gym equipment. Bank financing generally has more eligibility requirements compared to online lenders. You’ll typically need 2-3+ years of business history to qualify. Credit unions may offer more flexible qualifications, but lower borrowing amounts.
Partnerships and investors can provide significant capital without incurring debt, sharing expertise and resources. Crowdfunding platforms enable gym owners to raise funds from the community in exchange for rewards or equity. Government grants and subsidies are available for fitness businesses that invest in health promotion activities.
Gym Equipment Financing – Final Thoughts
Financing gym equipment empowers you to stock your fitness center with the best fitness machines available. There are inherent risks, as with any financing option, but you must decide whether the benefits outweigh the risks.
Equipment loans are nothing new – it’s estimated that 79% of American small businesses finance equipment in one way or another. An equipment loan for gym equipment could help you maintain and grow your fitness business.
Contact us if you have more questions about gym equipment financing or to apply for a small business loan. Our alternative financing experts can help you find the best funding solutions for your gym or fitness center needs.
