SBA Loans: Alternative to Equipment Financing
SBA loans are great for fitness equipment financing because they are guaranteed by the US Small Business Administration, which makes them less risky for lenders. You can use these to borrow large amounts of money, up to $5 million, even if you have bad credit. Here are a few that would come in handy when financing gym equipment:
- The SBA 7(a) Loan Program: The SBA’s most common loan program. It lets business owners get loans and lines of credit for almost any purpose, such as working capital, purchasing equipment or real estate, refinancing debt, and more. You can access up to $5 million in funds with a 5-10 day turnaround time.
- SBA CDC/504 Loan Program: Long-term, fixed-rate loans for companies that want to finance the purchase of major assets. This can include real estate, buildings, or machinery. Typically, the business owner must show that these purchases will encourage business growth and job creation. You can access up to $5 million in funds, but must have tangible net worth under $15 million.
- SBA Microloan Program: If you have a small gym business, this might be right for you. SBA microloans are designed for startups, entrepreneurs, freelancers, and small businesses that don’t need significant funds. These loans offer up to $50,000 and have less stringent credit requirements, making them a good choice for borrowers who only need a small influx of cash.
- SBA Express Loans: Quick loans for small amounts. Where it can take up to two weeks to get a lending decision on a typical SBA loan, SBA Express loans offer a decision in just 36 hours. The drawback is that these loans have much lower limits than typical SBA loans and that they can come with stricter underwriting requirements. However, if your business needs quick funds, they can be a good choice if you need a maximum amount of $500,000.
Business Mentoring Organizations That Could Help
If this is your first time purchasing gym equipment, getting business mentoring might be a good way to get started. This way you’ll save yourself hours of trial and error as well as stress from the process. Here are a few business mentoring organizations that can help:
- Small Business Development Centers: Ideal for small businesses, these centers make it easy to find assistance and counseling in your area to start, run, or grow your business.
- SCORE: Whether you need help getting started, growing or transitioning your business, this non-profit organization offers free advice from business experts.
- Networking Events: You can decide if you want to join a virtual or in-person one, there’s sure to be one in your area. Look up industry-related Facebook groups to get started, they often have events near you.
Where To Buy New Equipment For Your Gym: Shops vs Manufacturers
If you're setting up a gym, you want to make sure the fitness gear you acquire is from a reputed brand or a well known manufacturer in the industry:
- Shop: Getting your equipment from a store means you have a variety of fitness gear to choose from at different price ranges. This means you can select the exact machine you want that suits your workout program requirements or your budget.
- Manufacturer: When you buy from a well-known manufacturer, you're investing in quality with the help of experts who can guide you in selecting the right equipment for your gym's needs. Additionally, you’re skipping the middlemen and can get a deal on your purchase.
What To Keep In Mind When Buying New Fitness Equipment For Your Gym
When the time comes to purchase new equipment for your gym, don't let yourself become overwhelmed by the process. Make sure you take your time and research fitness equipment before you pay for it. Here are a few things to keep in mind:
- Assess your fitness needs
- Understand different types of gym equipment
- Know how much space is available
- Buy from reputable stores
- Determine what equipment features you require
- How much repair and maintenance the equipment will need
Should I Repair or Replace My Fitness Equipment?
All equipment has a lifespan. Often equipment lasts between five and ten years depending on the maintenance and repair it gets. As a general rule of thumb, you know you have to replace a piece of gear if you spend more money fixing it or time placing an out-of-order sign on it than it’s in use.
How To Take Care Of Your New Fitness Equipment Properly
Each piece of equipment has its own repair and maintenance needs. To give each piece of fitness gear optimal care, make sure you read the manual and give it maintenance in a timely manner, so it will work seamlessly for a longer period of time.
New fitness equipment is the best choice for your gym. While buying it might be a financial challenge, these resources make the process easier. Make sure you take the time to carefully evaluate your needs before investing in new equipment, this way you’ll be putting money towards the growth of your business and get your gym members excited about the new acquisitions. You might like to read more about the best gym equipment financing options before you make a decision.