Gym Equipment Financing and Leasing: Best 6 Options

The gym industry is an ever-changing one. It seems like every year, a new trendy workout or piece of equipment pops up, and as a gym owner, you want to stay relevant. That means constantly investing in your business and having the latest, greatest equipment.

Gym equipment, unfortunately, doesn’t come cheap. Sure, you can buy used equipment, but then you run the risk of faulty operation. You want the best equipment out there, and a small business loan can help.

There are many options when it comes to gym equipment financing, and it can be hard to know which is the best for you. How much should you borrow? Who is easy to work with? What’s a good interest rate, and how can you get one?

In this review, our team of expert reviewers has thoroughly analyzed and evaluated the top lenders in the industry. We will share our findings and provide a rating methodology you can use to select the best option for your needs..

Gym Equipment Financing and Leasing: Best Options Overview

Let’s kick things off by looking at some of the online lenders who offer financing you can use to purchase gym equipment like treadmills, bikes, weight machines, and even computers.

How to Choose the Best Gym Equipment Financing Option

• Loan features: We looked at loan amounts, loan terms, and a variety of different types of loans for your financing needs.
• Application process: Does the lender do a hard or soft pull on your credit? Is the application short or cumbersome?
• Interest rates and fees: Some lenders charge fees on top of interest rates, which can add up. The better your qualifications as a gym owner, the lower the interest rate you’ll qualify for.
• Qualification process: Some lenders put more weight on your credit score, while others look at other factors like time in business and annual revenues.
• Customer support: We look for lenders who are easy to contact if you have a question.
• Online user reviews: We also look at what others had to say on independent review sites like Trustpilot.
• Perks and bonuses: Some lenders offer other benefits, like early payment discounts. We also looked at payment flexibility, advertising transparency, and advanced technology.

How Much Does Gym Equipment Cost?

Not sure what you might need to pay for gym equipment? Here’s a quick guide to average costs for gym equipment.

Depending on the size of your gym, you may need to purchase dozens of these items. And keep in mind, there may be a discrepancy in quality from the low end of these ranges to the high end. You want to buy or lease gym equipment that will be durable and keep your members safe over the long-haul.

How Much Money Do You Need to Open a Gym?

It’s important to get an idea of how much it costs to open a gym and make sure you can cover your expenses. These will not only include the cost for the equipment, but also costs for remodeling, commercial rent, payroll, marketing, supplies, and any business licenses you will need to get started.

Here’s what you need to consider:

• Monthly rent ($5,000-$8,000/month): You can, of course, choose to purchase your space. If you choose to rent, though, expect to pay between $5,000 and $8,000 per month at a minimum.
• Equipment ($10,000-$50,000): Equipment costs will vary depending on the types of equipment you buy and how much you need, but expect to spend $10,000 at the very least.
• Permits and certifications ($2,000): Your state or local government may require you to have certain business permits, and you may also want fitness certifications if you offer personal training. These costs will vary, but expect to spend $2,000 or more.
• Insurance ($12,000 per year): This includes workers compensation and liability insurance.
• Miscellaneous (varies): Miscellaneous expenses for your gym may include office supplies, utility bills, marketing and advertising, taxes, payroll, and more.

In total, it may cost $50,000 or more to start a gym business and keep it operating.

Gym Equipment Leasing vs. Loans

• Equipment loan, you are purchasing the equipment. Once you pay the loan in full, you own the equipment outright. You can keep it or sell it. Often, though, the equipment has depreciated in value and you won’t be able to sell it for more than a fraction of the cost you paid.
• Equipment lease, you are paying to have the equipment for a specified period of time. Once that lease period is over, you give the equipment back to the company. You may also have the option to purchase the equipment at the end of the lease.

The Pros and Cons of Gym Equipment Financing

Before taking on gym equipment financing, understand the benefits and drawbacks of doing so.

Pros

• Don’t need cash up front to get the equipment
• Can pay for the equipment over months or years
• Allows you to get the best equipment available
• Helps you pay for other expenses that come with running your gym

Cons

• You’ll pay interest and potential fees on top of the loan
• Some loans may be difficult to qualify for
• Some lenders limit how much you can borrow to purchase equipment

Alternative Gym Financing Options

If you don’t want to take out a gym equipment loan, or if you don’t qualify, there are alternative options for financing. They include:

Peer-to-peer lending

Peer-to-peer lending is similar to online lending, except there is no middleman. Rather than going through a small business loan company, you go directly to the individual lending the money. This can cut costs; but peer-to-peer lending still can be an expensive form of borrowing.

Personal loan

A personal loan is another alternative to traditional gym financing. To qualify for a personal loan, lenders will look at your personal credit history and your annual income. Loan amounts are typically less than business loans, but the requirements aren’t as strict.

Home equity loan

A home equity loan will come with the lowest interest rate compared to small business loans and personal loans. This is because your house is used as collateral. If you can’t pay back your loan, the lender can seek foreclosure.

Crowdfunding

Crowdfunding is getting online donations for your business from a large number of people. If 10,000 people contribute $5 each to your gym, for example, you’ll have $50,000. Popular crowdfunding websites include GoFundMe, Patreon, SeedInvest Technology, and Indiegogo.

Get a business partner

Another alternative to gym financing is seeking out a business partner. Your partner may be able to cover more of the costs upfront in exchange for more profits down the line. Or, if your partner has more solid credit, they may get a better rate on a loan or qualify for a larger amount. Having a business partner isn’t for everyone, so you’ll need to weigh the risks and benefits to see if it’s worth exploring.

Additional Gym Equipment Leasing Options

If you opt to lease your gym equipment, there are several companies that specialize in gym equipment leasing. Let’s look at a few:

Life Fitness

Life Fitness offers a wide range of gym equipment for cardio, strength training, group fitness, accessories, and more. Life Fitness offers both leasing and financing options.

Katapult

Fitness equipment brand, Expert Fitness Supply, has partnered with leasing company Katapult to offer customers the option to lease or lease-to-buy equipment. You don’t need good credit to qualify, and even if you have a bankruptcy on your record, you can still apply. Expert Fitness Supply offers products like saunas, ellipticals, treadmills, exercise bikes, free weights, and more.

ELEASE

ELEASE offers both leases and financing for gym equipment, including free weights, exercise benches, aerobic equipment, Nautilus equipment, universal gyms, mats, and training equipment. ELEASE offers financing from $10,000 up to $5 million, and can customize your payment schedule to make large payments during high-revenue periods and smaller ones when revenues aren’t as high.

The Bottom Line

Gym equipment financing can help you start or grow your gym business faster than bootstrapping those costs. Having the capital available to buy the latest technology and equipment can help you stay competitive in what can be a crowded market.

Whether you lease equipment or buy it outright, using a gym equipment loan can help you get the financing you need to start and operate your gym business.

*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.