Gym Equipment Financing: Compare Your Best Options
Gym Equipment Financing: Compare Your Best Options
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Max loan amount
$150,000
Min. credit score
600
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
National Funding - Equipment financing
Best for startups
Max loan amount
$150,000
Min. credit score
600
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
SBA 7(a) loan
Best for large loans
Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Best for large loans
Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Max loan amount
$250,000
Min. credit score
580
Est. APR
6.50-34.99%
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Triton Capital - Equipment financing
Best for bad credit
Max loan amount
$250,000
Min. credit score
580
Est. APR
6.50-34.99%
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Max loan amount
$10,000,000
Min. credit score
620
Est. APR
5.99-18.00%
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
- Can be used to build business credit.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
JR Capital - Equipment financing
Best for long-term financing
Max loan amount
$10,000,000
Min. credit score
620
Est. APR
5.99-18.00%
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
- Can be used to build business credit.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
Balboa Capital - Equipment financing
Best for fast financing
Max loan amount
$500,000
Min. credit score
620
Pros
- Multiple financing options available.
- Fast funding and simple application process.
- Accepts borrowers with fair credit.
Cons
- Lack of pricing information on website.
Balboa Capital - Equipment financing
Best for fast financing
Max loan amount
$500,000
Min. credit score
620
Pros
- Multiple financing options available.
- Fast funding and simple application process.
- Accepts borrowers with fair credit.
Cons
- Lack of pricing information on website.
U.S. Bank - Equipment financing
Best for established businesses
Max loan amount
$1,000,000
Min. credit score
Undisclosed
Pros
- Offers up to 25% in additional financing to cover soft costs, such as installation, taxes and freight.
- No down payment or blanket lien required.
- Option to finance multiple pieces of equipment on one contract.
Cons
- Can only apply online for transactions under $250,000.
- Interest rates and qualification requirements not disclosed online.
U.S. Bank - Equipment financing
Best for established businesses
Max loan amount
$1,000,000
Min. credit score
Undisclosed
Pros
- Offers up to 25% in additional financing to cover soft costs, such as installation, taxes and freight.
- No down payment or blanket lien required.
- Option to finance multiple pieces of equipment on one contract.
Cons
- Can only apply online for transactions under $250,000.
- Interest rates and qualification requirements not disclosed online.
🤓 Nerdy Tip
The information here focuses on financing gym equipment for commercial purposes. If you’re looking to finance personal fitness equipment, check out this article on how to pay for a home gym.A closer look at the best gym equipment financing
National Funding
Our favorite feature: No UCC lien required
National Funding’s equipment financing does not require a UCC lien or collateral, which means you don’t have to worry about risking your business assets if you’re unable to make payments. Not having a lien on your business credit report can also help you down the road if you end up needing additional financing, especially if you’re a growing business. Like with most business loans, you will have to sign a personal guarantee which means you are still personally on the hook if you were to default.
Although National Funding only requires
6
months in business, its revenue requirements are $250000
annually, which can be high if you’re a startup. You’ll likely need to be a high-revenue, fast-growing business for National Funding to work for you. SBA 7(a) Loan
Our favorite feature: Capped interest rates
SBA loans are government-guaranteed with valuable features for business owners who can qualify. For loan amounts over $350,000, interest rates are capped at 3% over the base rate. For loan amounts of $50,000 or less, the cap is 6.5% over the base rate.
SBA 7(a) loans can be notoriously slow to fund, so if you’re in need of fast funding, it’s best to look elsewhere. The whole process can take two to three months.
Triton Capital
Our favorite feature: Flexible payment options
With a Triton Capital loan, repayments can be made monthly, quarterly, annually, semi-annually or by season — which can be extremely beneficial for a gym that may experience fluctuation in client numbers.
We also like that Triton reports to all major business credit bureaus, which may help you build business credit and qualify for additional financing as you grow your business.
Though you may be able to qualify with a
580
credit score, you’ll still need a high annual revenue — a minimum of $150000
— and at least 24
months in business to qualify. JR Capital
Our favorite feature: Long repayment terms
JR Capital offers terms up to
84
months long — which is longer than you’ll typically find with online lenders. This can benefit gym owners financing large amounts of equipment by lowering monthly payments and preserving cash flow for daily operations. With JR Capital, you have to qualify based on creditworthiness to avoid prepayment penalties. Especially with a longer term, it can be important to understand any potential penalties if you plan to pay your loan off early.
Balboa Capital
Our favorite feature: One-hour approval
Balboa Capital’s streamlined application and one-hour approval allows you to move quickly on gym equipment you may come across. Balboa can also fund within the same day as approval.
Streamlined applications may only be available in amounts below $500,000, so for larger equipment needs, you likely won’t be able to access same-day funding.
» MORE: Best same-day business loans
U.S. Bank
Our favorite feature: Soft-cost financing
Even with 100% financing, tight cash flow can still put you in a bind when it comes to additional expenses that are necessary to put your new equipment to use. With U.S. Bank’s equipment financing, you can get extra funds on top of the total cost of equipment for things like installation, freight costs and taxes.
If your financing needs exceed $250,000, you won’t be able to apply with U.S. Bank online, which is something to be aware of when you’re planning for funding.
What is gym equipment financing?
Gym equipment financing refers to a loan that’s used to buy fitness equipment for your business. You borrow the money you need from a lender and repay it, with interest, over a designated period of time.
As with other types of equipment financing, the gym equipment you purchase serves as collateral on the loan. As a result, the value and projected useful life of the equipment will play a role in the terms you receive. Your rates and terms will also vary based on factors such as your credit score, length of time in business, annual revenue and down payment amount.
How to finance equipment for your gym
There are several different ways you can finance gym equipment. The best option is typically the most affordable one that you can qualify for that meets your needs.
Bank loans
Gym equipment financing from a traditional bank will likely offer the lowest interest rates and most competitive repayment terms. To qualify, however, you’ll need to meet strict requirements. Bank of America, for example, requires you to have at least two years in business and a minimum annual revenue of $250,000 to get an equipment loan. You’ll also likely need a strong credit history.
SBA loans
SBA loans provide competitive interest rates and long repayment terms. These loans are guaranteed by the SBA and issued by participating lenders, like banks and credit unions.
Both the SBA 7(a) loan and 504 loan can be used to finance gym equipment. Like business bank loans, however, SBA loans have fairly strict qualification requirements. You’ll likely need good credit, strong finances and multiple years in business to get funded.
Online loans
Online lenders that offer dedicated equipment financing can be a good option for fast access to funds. For startup businesses and borrowers with bad credit, these loans are more accessible than bank and SBA loans. However, compared to bank and SBA loans, gym equipment financing from an online lender will typically have higher interest rates and shorter repayment terms.
Vendor financing
Some gym equipment vendors offer their own financing options. These vendors may use a third-party platform like ShopPay or PayPal Credit, or they may work with financing partners to provide loans. Because you’re working with the vendor directly, you may see more flexible qualification requirements and expedited application processing.
Although vendor financing offers a streamlined experience, you should always compare a vendor’s options with those from other lenders in the marketplace to make sure you’re getting the best deal.
Pros and cons of gym equipment financing
Pros
Allows you to pay for expensive gym equipment over time.
Loans are self-collateralized; additional collateral, like business or personal assets, won’t necessarily be required.
No or low down payment options in some cases.
Eligibility requirements can be more flexible than with unsecured loans because equipment serves as collateral.
Cons
In the long run, because of interest, loans cost more than buying equipment outright.
Interest rates can be higher if your equipment is less valuable, you have a lower credit score or your gym is new.
Lenders can reclaim the gym equipment if you can’t pay your loan.
Gym equipment financing vs. leasing
Many lenders offer equipment leasing in addition to equipment financing. With an equipment lease, you make regular payments for a set period, but don’t own the equipment at the end of the term.
Instead, you have a few options:
- Renew your lease.
- Buy the equipment at its fair market value, at a discount or another agreed upon price.
- Return the equipment to the lender.
- Upgrade to a new piece of equipment.
How quickly your gym equipment becomes outdated can help you decide whether a lease is a good option. For example, it may make sense to lease machines like treadmills, elliptical machines, stationary bikes and similar equipment whose technology and models advance rapidly. On the other hand, financing (i.e. a loan) may be a good option for equipment such as free weight sets, benches and barbells, which typically don’t become outdated quickly.
» MORE: Best equipment leasing companies
Alternative options for financing gym equipment
Perhaps neither gym equipment loans nor leasing are right for your needs. Here are some other options you might consider:
- Short-term loans. Offered by online lenders, short-term loans generally have loan terms of three to 18 months and are easier to qualify for than a conventional bank loan.
- Business lines of credit. Lenders can also offer business lines of credit, where they extend you a predetermined amount of cash that you can use when you need it.
- Microloans. These loans offer funding of up to $50,000 and typically can be used for a variety of purposes, including equipment purchases. Microloans are issued by nonprofit and community organizations that often focus their lending efforts on traditionally underserved businesses.
Frequently asked questions
Whether you should buy or lease depends on your specific business situation. Buying equipment is a long-term investment and provides your business with an asset. Leasing, on the other hand, is cheaper and can help new gym owners get started. Leasing also comes with lower maintenance costs and the ability to update to new equipment every few years.
Some lenders can finance gym equipment for borrowers with a credit score as low as 575. To qualify for the best rates and terms, however, it’s helpful to have a credit score in the mid-600s or higher.
Gym equipment costs can vary widely based on the size of the gym and the type of equipment you need to purchase. According to the gym software company Gymdesk, a good estimate for equipment costs is $25 per square foot of your gym . So, if your gym were 3,500 square feet, your equipment costs would be about $87,500.
Last updated on October 23, 2024
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact-check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.
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