Disclaimer: Information in the equipment financing articles is provided for general information only, does not constitute financial advice, and does not necessarily describe Biz2Credit commercial financing products. In fact, information in the equipment financing articles often covers financial products that Biz2Credit does not currently offer.

The estimated cost of opening a gym can range from $50,000 to $3.6 million depending on the type of gym, according to Mindbody. Unsurprisingly, a large part of that investment is to finance gym equipment.

Whether you want to launch a new enterprise and build a gym from scratch or want to upgrade your gym equipment to be a state-of-the-art commercial gym, it will cost a significant sum of money. The good news is you can secure gym financing to help you cover the costs now and pay over time.

What is a Gym Equipment Loan?

A gym equipment loan is a type of financing that lets you borrow funds to help you finance gym equipment like treadmills, power racks, and more. In exchange for the loan, you pay interest on what you borrow throughout your repayment term.

Fitness equipment financing can come from a variety of places, with different interest rates and terms. Some have stricter eligibility requirements than others and may look at your:

• Credit score
• Revenue
• Years in business
• Business size

Equipment financing differs from other types of loans as you must use the loan funds to buy business equipment. Additionally, the equipment you buy is used as collateral to back the loan.

So if you default on paying your gym equipment loan, the lender could take back the equipment. Because the lender has something to fall back on, you may be able to borrow more and get more favorable rates and terms. 

5 Ways to Finance Gym Equipment

If you’re looking to finance gym equipment, you have several paths to look into. However, you might not qualify for all options, so find one that works for you and your business goals.

1. Vendor Financing

You may be able to finance gym equipment directly with the vendor. Some gym equipment vendors have streamlined the buying process and allow you to use Shop Pay with Affirm monthly payments or PayPal credit at checkout. So if you’re buying cardio equipment or dumbbell sets from a specific vendor, you can potentially finance the gym equipment.

Eligibility can vary by state and the APR you qualify for may be as low as 0% or as high as 36%. Additionally, you might need a down payment as well.

2. Online Lenders

When it comes to eligibility, online lenders might be one of the easier gym equipment finance options to get. Some online lenders offer small business owners specific equipment financing and can work with you if you have fair credit. 

Plus, you may qualify if you’ve been in business for a shorter time frame compared to other options. This can be a major perk as some lenders want several years of business history to approve you for a loan.

One of the primary benefits of going this route is that you can receive funds faster. The downsides include that you’ll likely have shorter repayment terms of one to five years and higher APRs. Both will affect how long you have to repay your gym equipment loan, your monthly payments, and the total amount you’ll pay.

3. Banks

Most major banks offer business equipment financing. Depending on your needs and eligibility, you may qualify for a higher gym equipment loan amount to help with startup costs and repayment options that fit your needs. 

Be aware of potential fees that can add to the cost of the loan. Additionally, banks generally have more eligibility requirements you must meet to qualify for a loan and funds can take longer than an online lender. 

4. Small Business Administration

The Small Business Administration (SBA) can help you finance workout equipment with one of its loans. The SBA works with lenders to offer funding between $500 and $5.5 million and backs the loans, making it less risky for the lender and easier for the borrower. SBA loans that you can use for fitness equipment financing include:

• SBA 7(a) loans
• SBA 504 loans

The repayment terms on SBA loans can be 10, 20, or 25 years, depending on the type of loan and lender.   Interest rates vary based on market and economic conditions. You must meet the SBA’s eligibility requirements, which include credit approval and reviewing cash flow to ensure you can afford to pay back the loan. 

5. Business Line of Credit

When you take out a loan, you borrow a set amount. But if you’re looking for more flexibility, a business line of credit can give you more options. Through a business line of credit, you can draw upon what you need from a specific credit limit and only pay back what you actually borrow.

This type of fitness equipment financing is similar to revolving credit with a credit card. You pay interest on the amount you use and then as you pay back the line of credit, that amount becomes available again. This allows you to use what you need when you need it, and have continual access to funds as you pay back the money. That way you can pay for lower cost items like kettlebells or barbells or expensive specialty exercise equipment.

Many banks and credit unions offer a business line of credit and require you to meet credit and other eligibility requirements. Typically, you must have a business checking or credit card account to be eligible for a business line of credit. 

Do Your Research Before Taking on Gym Financing

If you need to finance workout equipment to start or maintain your gym, you have a range of options to choose from.

To find the right fit, review your eligibility, compare interest rates and repayment terms, and look at customer reviews. From there, you can make an informed decision about the type of gym financing you want.

Frequently Asked Questions (FAQs)

How Can I Get Financing For Commercial Gym Equipment?

You can finance gym equipment for a commercial gym by getting funding from a variety of sources. There are business equipment financing options through banks, online lenders, and the Small Business Administration (SBA).

What Are The Best Financing Options For Purchasing Commercial Gym Equipment?

If you need a gym equipment loan fast, you may consider using an online lender. If a bank currently handles your business finances, you can ask if they offer equipment financing or a business line of credit.

What Are The Steps To Finance Equipment For A Fitness Business?

To finance workout equipment, research multiple lenders that offer equipment financing. Then, review the eligibility requirements and if possible, get pre-qualified. Compare options, look at monthly payments and rates, and decide which lender offers the best choice.

Can I Buy Fitness Equipment For My Business In Bulk With Financing?

You may be able to buy fitness equipment in bulk from specific vendors and obtain vendor financing. Other options include equipment financing from online lenders, banks, or the Small Business Administration.

What Is The Difference Between Lease And Finance Equipment?

The main difference between leasing and financing equipment is what happens at the end of the term. A lease is similar to a long-term rental and allows you to use the equipment for the duration of the lease. Financing equipment means making monthly payments until you pay off the loan balance and then the equipment is yours to keep.

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