Business Loans For Gyms
Building your business from the ground up can be an expensive move, especially if your business involves large quantities of gym equipment. If you find that you’d rather not burn all of your hard-earned cash from the get-go on brand new equipment, then you may wish to explore your options in regard to leasing the equipment. Taking out a business loan can be the right move whether you decide to lease the equipment or buy it outright. Once you’ve got fantastic kit behind you, without the unnecessary strain on your start-up cash-flow, you can open your doors and get the ball rolling on your brand-new gym business adventure.
What Different Types Of Business Loan Can I Take Out?
There are two main forms of business loans for gyms that you can opt to take out, both of which have their own benefits. Equipment leasing is a long-term agreement with a lender and tends to be the more popular choice for gym owners. A leasing agreement gives you the leeway to upgrade your equipment as and when you need to. This also eliminates the cost of servicing and maintaining the equipment – as this cost is included within your lease fee. This service can be a very good option because gym equipment is subject to high levels of damage over relatively short spaces of time (the more popular your gym, the more damage your equipment will sustain). Many gym owners, therefore, decide to rent rather than buy their own equipment.
On the other hand, if you want to own the equipment at the end of the loan agreement then a hire purchase business loan for gyms might be a better option. In this instance, the borrower pays their loan off in instalments, the equipment then belongs to them once the loan has been fully paid off in full.
Benefits Of Equipment Leasing And Hire Purchase
– Scheduled and fixed repayment costs – you know exactly what you’re paying and when.
– The responsibility of maintenance and upkeep lies with the lender – expensive upkeep costs are not your responsibility. Gym equipment goes through the wars and maintaining it to a high standard can be an additional, unwanted cost.
– The customer is able to upgrade the equipment whenever they need to – if you find that a piece of equipment isn’t working for you and your environment then you are able to upgrade it within the bounds of the lease.
– The equipment ultimately belongs to you at the end of the loan period. You don’t have to worry about returning the equipment or buying it outright at the end of the loan – the equipment is yours to keep upon payment of the final instalment of the loan.
– Gives you the freedom to invest your money elsewhere in the business – whether that be through marketing or growing your staff base. If you don’t invest all of your money in expensive equipment from the get-go, then you can invest and grow, with the equipment becoming yours at the end of the loan period.
Why Take Out A Business Loan For Your Gym?
Financing an entire gym set-up is no easy feat. Long-term gym owners usually opt to use a business loan for their gym to give them the scope to expand their business without having to reduce their bottom line. Newly established gym businesses use these loans as a way of covering set-up fees, this then gives them the chance to channel their investment money towards marketing the business and brand building. Compare your business loan options here.
Key Benefits Of Business Loans For Gyms
– Allows you to fully stock your gym with quality equipment without incurring the total expense.
– Gives you the freedom to invest your money in other aspects of the business such as marketing and user growth.
– Allows you to grow as a brand much more quickly, whilst providing a quality service.
– The process of acquiring a business loan for your gym is both quick and simple.
– With a very high approval rate and applications themselves processed very quickly, if you meet the lender’s eligibility criteria for your gym business loan, then you can have the money to use quickly, and without a ton of red tape.
What Do I Need To Do To Apply For A Business Loan For Gyms?
If your intention is to apply for a traditional loan, but you don’t have any assets that you can use as collateral to secure the lender against any losses that could be accrued by them, then you could find the loan process slows down somewhat. Nowadays however you have a vast range of different options available to you. Business loans for gyms and other businesses can be taken out as unsecured loans, meaning that you don’t run the risk of being declined for lack of assets.
What Information Do I Need To Have On hand?
Your business turnover – lenders who provide business loans for gyms, or business loans for other functions, will always look at income, turnover and other business account information when considering whether to accept a request for a loan. Unsecured loans come at a higher risk to the lender so eliminating that risk involves exploring how the business manages their cash.
Information about the business – having a lower turnover or very little profit could leave you likely to be rejected by lenders.
Duration and amount – lenders will also look at the amount you wish to borrow and the period of time you request in order to pay the loan back.
If you’re a gym owner, whether this is of a new or an established gym and are looking for money to expand then our services might be of use to you.
At Think Business Loans, we are able to offer unsecured business loans to customers, the ideal choice for those business owners who don’t have the necessary assets for collateral to take out a traditional business loan. With a panel of over 200 lenders, finding the right loan for you and your business is only a click away. So get in touch with a member of our team today should you wish to get yourself a business loan for your gym.