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Best Gym Business Loans of 2022

Becky Hanson

Whether you’re currently operating or planning to start up a gym, a business loan can help finance everyday expenses, expand your business, or brand new equipment to stay relevant in the industry. We’ve evaluated the best gym business loans based on loan terms, fees, rates, customer satisfaction, and overall quality.

Quick approvals with fast funding process

$6,000,000

Max. Loan Amount

12+ months

Time In Business

$10,000+

Monthly Revenue

650

Min. Credit Score

Overview

Biz2Credit provides a fast application process that can take less than 4 minutes and provide funding within 72 hours.

What we like

  • Fast funding process
  • Funding advisors available
  • Various repayment options
  • Large funding amount

What we don't

  • Origination fee
  • Maximum term of 36 months
  • Business assets required

No prepayment and origination fees

$250,000

Max. Loan Amount

12+ months

Time In Business

$3,000+

Monthly Revenue

640

Min. Credit Score

Overview

If you require cash quickly due to a cash flow shortfall or have a less than perfect credit score, Kabbage could be a promising option.

What we like

  • Borrowers with fair credit can apply
  • No prepayment penalties
  • Streamlined application journey
  • No origination fees

What we don't

  • Late payment fees are applicable
  • Short repayment terms
  • Business assets required

Business loans tailored to your needs

$500,000

Max. Loan Amount

6+ months

Time In Business

$10,000+

Monthly Revenue

600

Min. Credit Score

Overview

National Funding offers small businesses working capital and equipment financing loans that are suitable for a broad range of businesses, and you could receive approval and funding within 24 hours.

What we like

  • Early payoff discounts
  • Fast approval and funding
  • High approval rates for loan applications
  • Personalized experience

What we don't

  • Daily or weekly repayment
  • High minimum annual revenue

Considers applicants with bad credit profiles

$500,000

Max. Loan Amount

6+ months

Time In Business

$8,000+

Monthly Revenue

500

Min. Credit Score

Overview

Uplyft Capital provides fast funding turnarounds and a straightforward online application process.

What we like

  • Bad credit businesses are eligible
  • Fast funding turnaround
  • Transparent factor rates
  • Simple online application process
  • Range of funding options

What we don't

  • High factor rate
  • Daily or weekly repayment
  • Low revenue businesses do not qualify

What is a gym business loan?

Gym loans are a type of financing for fitness centers and gym owners that can be used to fund gym equipment, renovate your space, open new locations, and more.

How do gym business loans work?

The process for applying for gym business loans is similar to applying for other types of financing. You’ll need to provide proof of your business’s profitability and explain how you plan to use the money, along with other required information.

After reviewing your application, the lender will decide whether to approve it based on its investment criteria and risk appetite. If approved, they may ask you to sign a promissory note before issuing the funds.

What are the requirements for a gym business loan?

Here are some of the things lenders typically consider when reviewing an application for a gym business loan:

  • Credit history: The lender will want to know your credit score and any bankruptcies or derogatory marks on your credit report. This information helps the lender determine how likely you are to repay the loan and whether it’s worth extending credit to you in the first place. Having good credit will make it easier for you to obtain financing from a bank or other financial institutions.
  • Annual revenue: Lenders want to see how much money your gym can make each year. If your business does not have enough revenue history, then lenders will want to see projections for future years and months until they have enough data points.
  • Business plan: Your lender wants assurance that your business plan is solid and that you will be successful with or without their help. They will also want assurance that you know what you’re doing when starting a business and managing finances within it. 
  • Time in business: Some lenders will also want to see that you have a track record of success in the fitness industry. This can be a balance sheet or income statement showing profit earned in the previous six months and tax returns showing income earned during those six months.
  • Collateral: In some cases, it makes it easier for lenders to approve the loan with collateral because they will have some protection if something goes wrong with the business.

What are the types of gym business loans?

Here are some of the main types of gym business loans:

  • Term loans: Term loans are provided as a lump sum for a specific time, typically between one and five years, and paid monthly with principal and interest. You may be able to refinance your loan with another lender after completing a minimum number of payments, typically 6 or 12.
  • SBA loans: Small businesses typically use SBA loans with annual revenue under $5 million and cannot get conventional credit from commercial lenders because they lack collateral or good personal credit history.
  • Equipment loan: An equipment loan allows you to borrow money to purchase equipment or machinery used in your business. Banks often provide equipment loans, but they can also be provided by other lenders like leasing, commercial finance, and factoring companies. Equipment loans will be backed by your equipment as collateral.
  • Business line of credit: A line of credit allows you to borrow up to a certain limit at any time as needed. For example, if you need $50,000 to purchase new equipment, the line of credit would allow you to take out $50,000 immediately and pay it back over time as needed. If you only needed $10,000 initially, then all that money would be available immediately. You can think of a line credit like a credit card but with a lower interest rate.
  • Invoice factoring: Invoice factoring is another popular method of obtaining funds for your gym business. This type of financing involves selling your accounts receivable for cash before it has been paid by customers or clients who owe you money for services rendered. Invoice factors typically pay 80% of an invoice’s value when sold to them and hold onto the remaining 20% until payment comes due from customers or clients. These factoring companies also charge a fee every month when in use.
  • Merchant cash advance: Merchant cash advances are loans given to a business in exchange for a percentage of the business’s future credit card transaction volume. The money is repaid as soon as the credit card transaction occurs. Merchant cash advances can be used for any purpose, but businesses often use them in need of quick cash or with poor credit histories looking to expand their operations or purchase new equipment.

What are the benefits of getting a gym business loan?

There are several benefits of getting a gym business loan:

  • Improve your credit score: A gym business loan may help you improve your credit score. If you have bad credit, taking out a loan might help repair it. A good credit score can help you obtain better terms on loans.
  • Tax benefits: You can earn tax benefits from your state and federal governments. The amount of tax deduction depends on how much money is spent on interest, equipment, labor costs, and other expenses related to running your business.
  • Grow your business: You can use the loan for any expense related to growing and running your business. You can use it for buying inventory or equipment, paying staff salaries, marketing expenses, or even covering operating expenses.
  • Better borrowing terms: With a gym business loan, you’re likely to get better interest rates and longer repayment periods than if you were to apply for a personal loan or credit card. This is because the lender regards your business as more stable and less risky than a personal loan.

How can you use a gym business loan to grow your business?

Here are some ways that a gym business loan can help you:

  • Bring on new employees: You can hire new employees and offer additional services without waiting months or years for profits from your existing customers.
  • Upgrade gym equipment: If your equipment is outdated or broken down, replacing it with state-of-the-art equipment could help attract more clients and improve overall customer satisfaction. A business loan could help finance such an upgrade,
  • Cover insurance costs: Gym owners must have adequate insurance coverage before they open their doors to customers. The cost of covering all the equipment and other property owned by the gym can add up quickly.
  • Provide new services or products: Your customers may want more than just access to exercise equipment and facilities – they may also want personal training services, nutritional counseling or massage therapy services, nutritional supplements, and other fitness and health maintenance products. You’ll more likely have to hire professionals in those areas.

How to choose the best gym business loan

There are several factors to consider if you are looking for a gym business loan:

  • Know what you need: Before shopping around for loans, you must know exactly what financing will be most beneficial for your business. For example, if you need money for equipment purchases or renovations, then equipment or a line of credit may be best suited for your needs.
  • Flexible repayment schedules: Consider a lender who offers flexible repayment schedules. Keep to note that a longer term will be less stressful on your cash flow since payments are stretched, but the overall interest you pay will be higher. This is the opposite for shorter terms.
  • Compare interest rates: When you compare loans, some loans may have lower interest rates than others, but they may also have higher fees or other associated costs. You will need to understand what the total cost of each loan is going to be before deciding which one is best for your situation.
  • Application fees: Some lenders may charge an application fee for their loans or even a credit check fee. These can add up over time, so you must consider how many applications you’ll need to make before you decide on a lender.