What is gym equipment financing?

Gym equipment financing is a type of loan that provides money that can be used to purchase gym equipment. If you use a traditional inventory loan, the money will need to be paid back with interest. 

Depending on the type of loan you get, the equipment may be used as collateral.

Gym equipment companies often prefer inventory funding to a loan because it’s more affordable. Rather than receiving funds from a bank or financial institution you will receive funds from backers. Inventory funding can offer more flexibility and is often significantly cheaper than traditional options.

How does gym equipment financing work?

Gym equipment financing may work differently depending on the type of loan you are getting but typically the first step will be qualifying. The lender may ask to see your credit score and business history. In other instances, they may use inventory as collateral. This can be a good choice for businesses that are just starting out.

Once the loan is set up, the borrower will need to make regular payments with interest until the loan is paid off. When all payments are made, they will own the equipment.

If you use inventory funding, you will still need to apply. Once you have raised funds and connected with backers, you can create flexible repayment schedules. In some cases, you do not have to repay until inventory sells.

What type of exercise equipment can be financed?

Just about any type of exercise equipment can be financed. Some examples include. . .

• Barbells
• Exercise balls
• Training bench
• Treadmills
• Ellipticals
• Exercise bikes
• Rowing machines
• Resistance bands

Exercise / Gym Equipment financing options

There are several types of gym equipment financing options you can choose from. These include the following:

Bank Gym Loans: Banks often lend money to businesses that are just starting out, but you will need plenty of documentation to prove financial stability and creditworthiness. They offer reasonable interest rates (usually 5-10%) but most banks will want to see the owner’s business history and credit score. This makes it difficult for owners of new businesses to qualify. Bank loans can also take a while to fund. Terms can be between 1-25 years.

SBA Loans: The Small Business Administration (SBA) also provides loans to business owners. The SBA is an agency of the United States Government that is designed to support the growth of small businesses. The SBA is more forgiving if the business defaults on the loan. Interest rates are usually between 6- 8% and terms are between 1- 25 years.

Alternative Gym Loans: Alternative gym loans are a common choice for new business owners as they do not require as many qualifications. However, they can come with higher interest rates which usually fall between the 8- 25% range. They are also shorter-term loans that must be paid off within 1- 5 years. A type of alternative loan could be a personal loan.

Asset Based Fitness Center Loans: If you own real estate and are looking to get gym equipment financing, you may be able to use your property as collateral. Asset based loans usually come in the form of a term loan or a line of credit. Interest rates fall between 10 – 20% and loan terms are 1- 5 years.

Fitness Center Cash Advance: A cash advance is similar to a credit card. It allows you to withdraw cash on an as needed basis. You don’t need to meet many requirements to qualify for a cash advance, but these types of loans come with a lot of fees. They are short term loans that usually last for 3 -24 months.

Gym Equipment Inventory Financing: Gym equipment inventory financing allows you to buy gym equipment without many requirements. The equipment is used as collateral for the loan. It makes for a convenient way for new business owners to get the funding they need, but if they default on the loan, they could lose their equipment.

Pros and cons of gym equipment financing

Gym equipment financing comes with its share of pros and cons. Here are some things you will want to consider.

Pros:

• Access to cash for inventory. Inventory can consume a large portion of cash. By using inventory financing, you can improve cash flow while keeping a healthy stock of inventory.
• Flexible repayment terms. Shelling out cash to purchase inventory is a smart investment. However, it may take a while to replenish the funds which can disrupt cash flow. An inventory loan can offer flexible monthly payments.

Cons:

• Interest rates add up over time. Borrowing money usually costs money. You will want to find the most affordable way to finance inventory to ensure it does not deplete profits too much.
• Qualifying can be challenging. In most cases you will need to provide documentation to prove sales and creditworthiness. If you are a new business, it may be hard to come up with enough proof to qualify for a loan.

Reasons why business owners seek gym equipment inventory financing

There are a variety of reasons why business owners seek financing for gym equipment including. . .

• Needing to stock gym equipment to sell 
• Improving cash flow 
• Freeing up cash for other business activities

What are the requirements to apply for gym equipment inventory financing?

The requirements for gym equipment financing will vary depending on the kind of loan you are looking at. In most cases, the lender will want to see a reliable business history and a high credit score. However, you may also use your inventory and other assets as collateral. To qualify for inventory funding at Kickfurther you will need to sell physical products and have sales of at least $150,000.

How to apply for gym/exercise equipment financing 

The first thing you will want to do when applying for gym equipment financing is to find the loan and lender that’s right for you. You must consider interest rates, what’s required for qualifying, what you will be using the money for and other factors.

Once you decide on the option that’s most suitable, the lender or platform will explain what you need to do to qualify. They may ask you to show a credit score and provide bank account statements and tax returns that show your business’s financial activity. If the lender doesn’t have as many requirements, they won’t be asking for as much paperwork. 

To raise funding through Kickfurther you will create your account online. Once approved, you can receive funding in as little as a few hours.

How Kickfurther can help

Kickfurther can help brands that sell physical products with revenue between $150k to $15mm over the last 12 months. We connect brands to a community of eager buyers who help fund inventory on consignment. Brands can benefit from the flexibility to pay that back as they receive cash from their sales. Kickfurther is the world’s first online inventory financing platform that enables companies to access funds they are unable to acquire through traditional sources. Kickfurther has 800+ opportunities funded totaling $100mm+ and a 99% funding success rate. 

Conclusion

Gym equipment can be expensive. However, that shouldn’t detour an entrepreneur from entering the industry. There are affordable options for inventory, you just have to find them. Now that you know about Kickfurther, you are one step closer to locking in affordable inventory funding. 

Pump up your sales. . . discover affordable exercise and gym equipment inventory funding today!