A competitive gym needs a full floor of cardio, strength and functional equipment, and members notice when it is worn out. Equipment is usually one of the largest costs in opening or refreshing a facility, alongside the buildout.
Options
- Equipment finance agreement for equipment you will keep for years, such as racks and free weights
- Fair-market-value lease for connected cardio equipment that you plan to replace on a cycle
- Deferred first payments for new locations, on approved deals
Franchise and independent gyms
Franchisees often buy a package specified by the franchisor, which lenders know well and can underwrite quickly. Independent gyms can finance equipment too; lenders will look at owner experience, membership numbers, retention and cash flow.
Refresh cycles
Cardio equipment with screens and software tends to look dated sooner than strength equipment. Many operators lease cardio on a 3- to 5-year cycle and own strength equipment outright, which keeps the floor current without replacing everything at once.
Plan the opening
Budget for flooring, installation, sound and software alongside the equipment, and keep working capital for the months before membership reaches break-even. Pre-sales before opening help with both cash flow and the lender’s view of the business.
Taxes
Fitness equipment bought with an EFA or $1-buyout lease generally qualifies for Section 179. Use our calculator for an estimate and confirm with your tax advisor.
All financing is subject to credit approval.
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