Fitness Centre & Gym Fitout Loans!
Do you currently own a gym, or are you hoping to open up a leisure centre in the near future? If so, then a gym fit-out loan may just be the finance option for you.
In recent years, fitness centres have grown in popularity and providers no longer need to be part of a huge franchise to set up business. Whether you are looking to start up a brand new fitness centre and want to provide the latest equipment to your customers, or if you currently own a gymnasium and are hoping to gain finance against the equipment that you already have, finance options really can be your saving grace.
It’s no secret that when a business needs a little help to get back on its feet, equipment finance can be just the tool to lend a helping hand; as an ideal way to improve cash flow and to increase a business’s chances of obtaining better working credit.
As equipment finance is a more secure method of lending than an unsecured business loan, lenders will have a better chance of obtaining the funding that they need to open their desired fitness centre. Although defaults on payment will result in the loss of equipment, many fitness business owners find that not having the stress of potentially losing huge amounts of operating capital to rectify issues more than beneficial.
How does Equipment Finance Work?
When cash is secured against equipment, it is imperative that the amount financed does not exceed the collateral value of the equipment itself. At the same time, the agreed duration of loan repayments cannot exceed the period of time in which the equipment is deemed as being ‘economically useful’. What this means is that using outdated or damaged equipment as collateral for financing will not ensure the success of your application – or the eligibility of your business.
As health and fitness-related venues often have larger amounts of specialised and expensive equipment than many other establishments, they can really benefit from the cash and credit options made available by equipment finance.