Fitness Financing: Finance Your Gym Equipment

There are over 113,326 gym and fitness club businesses in the U.S. as of 2023, and this number was up by 2.3% from 2022. As more people place a premium on their health, the demand for gym facilities also increases, making it a lucrative opportunity for those who want to start this type of venture. 

When you’re ready to start your own fitness business, having the best machines and equipment is essential for you and your clients’ success. Financing gym equipment has helped many entrepreneurs who are either starting a new business, expanding their capacity, or branching out. 

Charter Capital has been connecting those looking for fitness equipment financing with the right lender for over 40 years. We have established a solid and trusted network of lending partners who understand the needs of small and medium-sized businesses. Our goal is to help your fitness venture succeed by making sure you have access to the best gym equipment available.

If your company wants or needs to obtain exercise equipment financing to scale, gain an advantage over competitors, or upgrade existing units, our team at Charter Capital is here for you.

Some of the types of gym equipment we can help you find financing for include:

• Treadmills ($1,500-$5,000)
• Elliptical machines ($1,500-$6,000+)
• Training benches ($500-$3,000+)
• Rowing machines ($1,000-$2,500+)
• Weight machines ($3,000-$20,000+)
• Barbell and dumbbell sets ($500-$2,000+)
• Stationary bicycles ($1,000-$2,000+)
• Stair climbers ($4,000-$7,000+)
• Calf presses ($2,000-$6,000+)
• Pull-up machines ($1,000-$3,500+)
• Rubber floor matting ($3,000+)
• Air conditioning units or fans ($10,000+)
• Fitness and customer management software ($1,000+)

These are just some of the gym equipment financing needs that we have supported in the past. If the equipment that you need is not listed here, let us know, and we’ll accommodate any type of machine necessary to help your business succeed. Get in touch with the fitness equipment financing advisors at Charter Capital today to learn more about the different affordable fitness equipment financing options that are available.

Some of our customers…

• Are interested in the lowest rate.
• Are interested in a specific tax treatment.
• Want to avoid breaching existing lending covenants.
• Are interested in the longest term.
• Are interested in getting reimbursed for equipment they have already paid for.
• Want seasonal or other cyclical structures.
• Want to finance software.
• Want us to give the seller a deposit before the equipment is shipped.

All of our customers want a fair deal at a fair price and no surprises.

Leasing vs. Loans for Gym Equipment

Leasing and taking out a loan are two common ways to acquire gym equipment for your fitness facility. Each option has its own advantages and disadvantages, and the choice between leasing and taking a loan depends on your specific financial situation and business goals. Here are some key factors to consider for each option:

Leasing Gym Equipment

Lower Initial Costs: Leasing typically requires a smaller upfront payment or down payment compared to purchasing equipment outright. This can help you conserve your cash flow for other business expenses.

Maintenance and Upgrades: Many leasing agreements include maintenance and equipment upgrade options. This can be beneficial as you won’t have to worry about repair costs or using outdated equipment.

Tax Benefits: In some cases, lease payments may be tax-deductible as a business expense. You should consult with a tax professional to determine the tax implications for your specific situation.

Flexibility: Leasing provides flexibility because you can often upgrade or replace equipment at the end of the lease term without a significant financial burden.

Higher Overall Costs: Over the long term, leasing gym equipment can be more expensive than purchasing it outright because of interest and leasing fees.

Ownership: With a lease, you don’t own the equipment until the end of the lease term, and you may have to make a balloon payment or buyout option to own it.

Taking a Loan for Gym Equipment

Ownership: When you take out a loan to purchase gym equipment, you own the equipment from the start. This can be a significant advantage in the long run as you build equity in your assets.

Lower Overall Costs: Loans generally have lower overall costs compared to leasing because you’re not paying interest over the life of the equipment.

Tax Benefits: You may be eligible for tax deductions on the interest paid on the equipment loan. Consult with a tax professional to understand the tax implications.

Cash Flow Impact: Loan payments can be higher than lease payments, which can put a strain on your cash flow, especially if you’re a startup or small business.

Fixed Payments: Loan payments are typically fixed, which makes it easier to budget and plan for your financial obligations.

Maintenance Costs: You are responsible for maintenance and repair costs when you own the equipment, which can add to your operational expenses.

Choosing between leasing and taking a loan for gym equipment depends on your financial situation, long-term goals, and preferences. Leasing may be more suitable for businesses with limited upfront capital and a desire for flexibility while taking a loan can be a better option for those looking for long-term ownership and lower overall costs. It’s crucial to carefully assess your specific circumstances and consult with financial advisors or lenders to make the best decision for your fitness facility.

7 Things to Consider When You Want to Finance Gym Equipment

What does a good financing deal look like? Here are seven key pieces of advice:

1. Be aware of all the payments connected to the financing agreement, including upfront payments, monthly rentals, administration fees, processing fees, and even penalties. This is so you have a clear perspective of what you are committing to before signing any contracts.
2. Compare all terms across various providers, such as length of the contract, costs, interest rates, total cost upon completion, and other conditions. 
3. Determine the cost of ownership over the equipment’s lifetime. For instance, be aware that equipment maintenance costs will be on your shoulders when warranties expire. For example, if an elliptical breaks down or needs servicing later, you’ll need to set a budget aside for such expenses.
4. Don’t agree to a payment period beyond what you’re comfortable with. Ending your financing contract early might incur a huge cost, so be sure you’re happy with the terms.
5. Consider making the highest possible downpayment on your equipment financing agreement. This will help reduce your overall interest cost and increase the likelihood of an approval.  
6. Will you be eligible for tax relief as a result of financing gym equipment? Check this with the lender or your financial advisor. 
7. Ask for a copy of the quote terms and conditions, and be sure to read everything, including the fine print. Small clauses can make a huge impact on your business down the line. 

Overall, if the deal is too good to be true, or if the lender is somewhat pressuring you to sign a contract, you may be better off looking somewhere else. Attractive terms might be tempting right now but be sure to consider what could happen in the years to come that might place you in a tight spot with repayment. 

Charter Capital is Here for You

Charter Capital has a proven and successful history of providing equipment financing to business owners in any industry, helping customers find the best lending provider offering affordable plans. Our highly dedicated team of gym equipment financing advisors and financial brokers are among the most experienced in the country, so you are certainly in good hands. 

For more information, and to find out what fitness equipment financing options are available, contact Charter Capital today.