Skip to content

Commercial Finance for the Fitness Industry

Fitness industry commercial finance

Health and fitness is big business, with most towns and cities in the UK having a number of large chain gyms and fitness centres, as well as local authority run options and smaller independent offerings. In fact, in 2022 the industry was worth an estimated £1.7bn to the UK economy. However, just like other businesses Covid-19 had a major impact on the sector with prolonged forced closures. Likewise, costly gym memberships and personal trainers are some of the first things to go in a cost of living crisis. Commercial finance has many uses within the fitness industry and can help a business to survive and thrive when used appropriately.  

Finance for Gyms and Personal Trainers

For the purpose of this article, we will specifically look at smaller independently run gyms and personal trainers when considering commercial finance requirements. The principles may also apply to larger organisations, and MC Commercial Finance can help to support the specific requirements of businesses of any size, book an appointment to discuss your finance options today. 

Depending on the target market, services offered, and facilities available there are a range of commercial finance options that may be viable for businesses within the fitness industry. Some options that we will discuss in more detail below include: 

  • Asset finance
  • Business loan
  • Merchant cash advance
  • Development finance

Asset Finance for Health and Fitness Companies

For small gyms, and personal trainers with their own private studio asset finance is likely to be one of the most useful types of commercial finance. Asset finance is a specific type of finance that is used to purchase equipment that is vital for business use. Fitness equipment such as treadmills, squat racks, and dumbbells are all costly, and whether kitting out an entire facility, or replacing aging items asset finance could be a useful tool. 

Asset finance enables the purchase of equipment with a fixed monthly repayment over a fixed term. This allows equipment to be purchased without the need for a large cash expenditure and allows certainty in ongoing repayment costs. There are different types of asset finance depending on whether you want to own or lease the equipment, and some organisations may offer finance that includes maintenance and servicing options as required. 

In some circumstances it can be easier to secure asset finance than other types of commercial finance, this is because it is a secured loan. The equipment being purchased belongs to the creditor, and if you default on repayments the equipment can be seized. It is important to understand this, as gym equipment will be vital to the successful running of the business, so when choosing asset finance, you must ensure that the repayments are viable based on expected income. 

Business Loan For Gyms and PT’s

Another popular type of finance within the fitness industry is a business loan. Unlike asset finance that is specifically for equipment, a business loan can be used for other purposes. A loan can be used to fund the purchase of gym equipment, but it can also be used to rent and develop premises, for marketing, to cover staff and training costs, or anything else that your business needs. 

A business loan would be for an agreed amount, and the repayments would be at a fixed rate for a fixed period. This means certainty over outgoings, and predicted cashflow. However, a loan can be more difficult to secure and may require you to have a comprehensive business plan covering how the money will be used, and how you will afford to repay the loan. You can find out more about business loans here.

Merchant Cash Advance

Depending on the set-up of the business, this may or may not be a suitable form of finance. A merchant cash advance (MCA) is a loan based on payments taken via a card terminal. Many gyms and personal trainers rely on direct debit and bank transfers for payment, meaning this type of loan would not be available. However, for gyms that sell additional products or services, and those that allow walk-ins or short-term memberships, they may have a card payment terminal and as such an MCA may be the ideal type of finance. 

merchant cash advance provides a cash loan, usually based on an average month’s income via the card payment terminal. Depending on what the loan is needed for this might not provide a large enough sum of money for some businesses to be a viable option. However, if it is viable, repayments are made via subsequent income usually at a rate of 10% of monthly takings via the terminal until the loan is repaid at the pre-agreed rate of interest.  

Development Finance for the Fitness Industry

Another specific type of finance, development finance can be used to purchase and develop property and/or land. In the case of the fitness industry this type of finance may be suitable when building, purchasing, and renovating commercial premises into a gym, studio, or space for fitness classes, personal training, or other related uses. Development finance is usually a short-term loan, and you would need to demonstrate how the money would be used and provide a plan for repaying the loan.  

Securing Commercial Finance

Taking on finance should be a considered decision for any business, and it is always recommended that you seek expert advice. Utilising an expert such as MC Commercial Finance can help you to secure the right type of finance, at the best possible rate, and can also help you to save time and money by ensuring that you are paired with lenders that are most likely to be suited to your requirements.  If you are considering commercial finance for your gym or personal training business contact us now to discuss the options that may be available to you. We can help you with the entire process helping to make it as hassle free and fast as possible. 

MC Commercial Finance Ltd is authorised and regulated by the Financial Conduct Authority 
(Reg number 948719).
MC Commercial Finance Ltd is an independent credit broker not a lender.
Company Registered Number: 12472873